SECTION 1. Chapter 63 of the General Laws is hereby amended by inserting after section 38J the following section:-

Section 38J ½. (a) In addition to any other credit allowed pursuant to this chapter, a pediatric cancer research institution shall be allowed a transferable tax credit for expenditures related to pediatric cancer research. For the purposes of this section, a "pediatric cancer research institution" shall mean a hospital located within the commonwealth that is equipped for, and actively conducting, pediatric cancer research.

(b) The total aggregate amount of tax credits allowed pursuant to this section shall not exceed $10,000,000 in a fiscal year.

(c) A pediatric cancer research institution eligible for the this credit may transfer the credits, in whole or in part, to any individual or entity, and the transferee shall be entitled to apply the credits against the tax with the same effect as if the transferee had incurred the expenditures related to pediatric cancer research itself.

(d) Any pediatric cancer research institution that receives a credit pursuant to this section for any taxable year may carry over and apply to its tax due for any 1 or more of the next succeeding 3 taxable years the portion, as reduced from year to year, of the credit that exceeds any tax due for the taxable year.

(e) The commissioner of revenue may promulgate regulations necessary to carry out this section.

SECTION 2. Section 38J½ of chapter 63 of the General Laws is hereby repealed.

SECTION 3. Section 1 shall be effective for the taxable year beginning on or after January 1, 2023.

SECTION 4. Section 2 shall take effect on January 1, 2033.