Scope and Purpose

330 CMR 29.00 implements M.G.L. c. 62, §§ 6(o)(1) through (4) and M.G.L. c. 63 § 38Z, which establishes a tax credit to dairy farmers to offset the cyclical downturns in milk prices paid to dairy farmers. The purpose of 330 CMR 29.00 is to provide a safety net program that supports Massachusetts dairy farms through its provision of revenue stability to dairy farmers when either milk prices paid to farmers fall or costs of production rise relative to one another. An Eligible Taxpayer who holds a Certificate of Registration shall be eligible to receive a refundable state income tax credit based on the amount of milk produced and sold, such that if the price paid to dairy farmers drops below the Trigger Price, the taxpayer may receive the tax credit. The total annual value of the tax credit to all Eligible Taxpayers shall not exceed $6 million.