Bill > S1812

This bill aims to close corporate tax loopholes and create progressive revenue. The key provisions are: 1. Amounts included in federal gross income under Section 951A of the Internal Revenue Code (IRC) will not be treated as dividends for state income tax purposes, but amounts under Section 951 will be treated as dividends. 2. Taxpayers can deduct 50% of the amounts included in federal gross income under Section 951A of the IRC. 3. Amounts included under Section 951A of the IRC will not be considered receipts for purposes of the corporate excise tax. 4. The deductions allowed under Sections 245A, 250(a)(1)(A), and 965(c) of the IRC will be included in the definition of "Net income" for state corporate tax purposes. 5. The provisions of the bill apply to tax years beginning on or after January 1, 2021.

Budget and Finance

https://malegislature.gov/Bills/192/S1812