Bill > S2091

This bill modifies the Massachusetts tax code to allow for broader deductions of business interest by changing how the Internal Revenue Code (IRC) is referenced and applied in state tax law. Specifically, the bill amends several sections of Massachusetts General Laws to exclude the application of section 163(j) of the federal tax code, which typically limits the deduction of business interest expenses. The changes mean that for most tax purposes, Massachusetts will use the Internal Revenue Code as amended on January 1, 2005, with some specific exceptions. However, for certain sections related to business interest deductions (section 163(j)) and a few other specific tax code sections, the state will use the IRC as it existed for tax years beginning before January 1, 2018. The bill is retroactively effective for taxable years beginning after December 31, 2017, which suggests it is designed to provide more favorable tax treatment for businesses by allowing them to deduct a broader range of business interest expenses under state tax law.

Budget and Finance

https://malegislature.gov/Bills/194/S2091