Select the box if the disposition is Massachusetts qualified small business stock.

Effective for tax years beginning on or after January 1, 2011, Massachusetts qualified small business stock is taxed at a rate of 3% instead of 5.1%. In order to qualify for the 3% rate, investments must have been made within five years of the corporation's date of incorporation and must be in stock that generally satisfies the definition of "qualified small business stock" under IRC Section 1202 (c), other than the requirement that the stock be stock of a C corporation. In addition, the stock must be held for three years or more and the investments must be in a corporation which (a) is domiciled in Massachusetts, (b) is incorporated on or after January 1, 2011, (c) has less than $50 million in assets at the time of investment, and (d) complies with certain of the "active business" requirements of Section 1202 of the Internal Revenue Code, i.e., Section  1202 (e)(1), (e)(2), (e)(5), and (e)(6).