Bill > H2708

This bill aims to close corporate tax loopholes and create progressive revenue. It proposes several changes to the Massachusetts General Laws related to the taxation of corporations. Specifically, the bill would: 1. Treat amounts included in a corporation's federal gross income under Section 951 of the Internal Revenue Code (IRC) as dividends for state tax purposes, but exclude amounts included under Section 951A of the IRC. 2. Allow corporations to deduct 50% of the amounts included in their federal gross income under Section 951A of the IRC. 3. Exclude amounts included in a corporation's federal gross income under Section 951A of the IRC from the definition of "net income" for state corporate excise tax purposes. 4. Allow corporations to claim deductions under Sections 245A, 250(a)(1)(A), and 965(c) of the IRC when calculating their "net income" for state corporate excise tax purposes. 5. Exclude amounts included in a corporation's federal gross income under Section 951A of the IRC from being considered "receipts" for purposes of the state's corporate apportionment formula. The provisions of this bill would apply to all tax years beginning on or after January 1, 2023.

Budget and Finance

https://malegislature.gov/Bills/193/H2708