State Street Allowed to Take Massachusetts Research Tax Credits

State Street Corp. is off the hook for an $18 million Massachusetts excise tax bill after a state tribunal ruled Thursday that it—and all other banks—may claim research tax credits.

“The Board finds nothing patently absurd or illogical about a financial institution claiming a research credit,” Chairman Mark J. DeFrancisco wrote for the unanimous Massachusetts Appellate Tax Board, responding to the state revenue commissioner’s argument.

State Street, a bank holding company, filed combined Massachusetts returns along with two subsidiaries that specialize in banking and investment software. The companies reported a total of $13.9 million in research credits for 2018 based ...