Bill > H2861

This bill aims to level the playing field for small and medium-sized businesses in Massachusetts by amending the state's tax laws. The key provisions include: 1. Allowing corporations engaged in a "unitary business" to calculate their taxable net income based on the combined income or loss of the entire group, rather than just their own income. This is known as "combined reporting" and is intended to prevent corporations from shifting profits out of Massachusetts. 2. Requiring corporations that are members of a combined group with over $1 billion in gross receipts or sales and are incorporated in or do business in a low-tax country to be taxed at higher rates, ranging from 9% to 7.5% depending on the year. 3. Modifying the apportionment formula used by corporations to determine their Massachusetts taxable income, such as adjusting the property and sales factor denominators and including non-taxable members' Massachusetts sales in the taxable members' sales factor numerators. 4. Allowing corporations to elect to be treated as a Massachusetts combined group based on their affiliated group, rather than just their unitary business, for a 10-year period. 5. Updating the filing fees for limited liability companies in Massachusetts. The overall goal of the bill is to ensure that corporations, especially larger ones, pay their fair share of taxes in Massachusetts, while providing some flexibility for smaller businesses.

Budget and Finance

https://malegislature.gov/Bills/192/H2861