Bill > H3788

This bill aims to level the playing field for Massachusetts small and medium-sized businesses by amending the state's tax laws. The key provisions are: 1. It introduces a combined reporting system, where corporations engaged in a unitary business must calculate their taxable net income based on their share of the combined group's apportionable income or loss. This eliminates the ability to shift profits to low-tax jurisdictions. 2. It imposes higher tax rates (ranging from 9% to 7.5%) on corporations that are part of a combined group with over $1 billion in gross receipts or sales and have a member that is incorporated or does business in a country with a low or no income tax rate. 3. It allows corporations to elect to treat their affiliated group as the Massachusetts combined group, which would subject all affiliated group members to the combined reporting requirements. 4. It increases the filing fees for limited liability companies, with a higher fee for those with multiple members. The overall goal of the bill is to ensure that Massachusetts small and medium-sized businesses are not at a competitive disadvantage compared to larger corporations that may engage in tax avoidance strategies.

Budget and Finance

https://malegislature.gov/Bills/191/H3788