MA H4009

Bill

Relative to the taxation of pass-through entities

Introduced
07/22/2021

In Committee
07/22/2021

Crossed Over

Passed

Dead

Vetoed
08/03/2021

Signed/Enacted/Adopted
09/30/2021

Introduced Session

192nd General Court

Bill Summary

Section 39 contained in the engrossed Bill making appropriations for the fiscal year 2022 for the maintenance of the departments, boards, commissions, institutions and certain activities of the Commonwealth, for interest, sinking fund and serial bond requirements and for certain permanent improvements (see House, No. 4002), which had been returned by His Excellency the Governor with recommendation of amendment (for message see Attachment I of House, No. 4019). July 22, 2021.

AI Summary

This bill amends the General Laws of Massachusetts to create a new Chapter 63D, which allows eligible pass-through entities (such as S corporations, partnerships, and limited liability companies) to elect to pay a 5% excise tax on their qualified income taxable in Massachusetts. In return, the qualified members (shareholders, partners, or members) of the electing entity will receive a refundable tax credit equal to 90% of the excise tax paid by the entity. This chapter does not apply for any taxable year in which the federal limitation on the state and local tax deduction has expired or is not in effect. The excise tax is in addition to, not in lieu of, any other Massachusetts taxes, and the collection and administration of the excise tax will be governed by Chapter 62C. The election to pay the excise tax must be made by the eligible pass-through entity on an annual basis and is binding for that year.

Sponsors (0)

No sponsors listed

Last Action

Chapter 69 of the Acts of 2021 (on 09/30/2021)

Official Document

https://malegislature.gov/Bills/192/H4009

(4 Companion Bills)

Version:

Document Type	Source Location
State Bill Page	https://malegislature.gov/Bills/192/H4009
Bill	https://malegislature.gov/Bills/192/H4009.pdf

Bill	Bill Name	Last Action	Type
H4002	Making appropriations for the fiscal year 2022 for the maintenance of the departments, boards, commissions, institutions and certain activities of the Commonwealth, for interest, sinking fund and serial bond requirements and for certain permanent improvements	Item 5011-0100 passed over veto -see Roll Call #57 (Yeas 38 to Nays 2)	Replaced by
H4019	So much of the message from His Excellency the Governor returning the General Appropriation Bill for fiscal year 2022 (see House, No. 4002) as relates to Attachments A through R, for items returned with disapproval of wording under the provisions of Section 5 of Article LXIII and sections returned with recommendations of amendments under the provisions of Article LVI of the Amendments to the Constitution (House, No. 4019). July 19, 2021.	See H4002	Replaced by
H4050	Message from His Excellency the Governor returning with his objections thereto in writing the engrossed Bill relative to the taxation of pass-through entities (see House, No. 4009). August 3, 2021	See H4009	Replaced by
S2526	Relative to raising the income threshold for senior real property tax deferments in the town of Milton	Signed by the Governor, Chapter 71 of the Acts of 2022	Similar To

Bill > H4009

MA H4009

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Introduced Session

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Last Action

Official Document

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