Bill > H3052

This bill introduces a new section to Massachusetts tax law that provides a preferential tax rate to public benefit corporations that meet specific employee benefit standards. Under the proposed legislation, benefit corporations can receive a tax rate 1.5 percentage points lower than the standard corporate tax rate if they offer at least 4 out of 6 specified employee benefits, which include providing a living wage (defined as remuneration sufficient to afford a decent standard of living, as calculated by MIT's Living Wage Calculator), 12 weeks of paid parental leave, flexible spending accounts, maintaining a CEO-to-lowest paid employee compensation ratio of 25:1 or less, being governed as an employee cooperative, or implementing profit-sharing provisions that return at least 10% of corporate profits to employees. To qualify for the tax benefit, corporations must provide these benefits for at least 12 consecutive months, receive certification from the Department of Revenue, and comply with regulations established by the state secretary and commissioner. The bill aims to incentivize businesses to provide more comprehensive and equitable compensation and benefits to their employees by offering a financial reward in the form of a reduced tax rate.

Budget and Finance

https://malegislature.gov/Bills/194/H3052