Bill > H4975

This bill aims to manage the impact of federal tax law changes on Massachusetts finances by making several adjustments to state tax laws. It clarifies that for certain federal tax provisions, specifically related to "qualified opportunity zones" (areas designated for investment to spur economic development), the definition will be limited to areas within Massachusetts. The bill also establishes a mechanism where most recent federal tax code amendments will not apply to Massachusetts for the year they are enacted or the year prior, unless the state's revenue impact is projected to be less than $20 million. Additionally, it modifies the state's tax treatment of certain deductions, adjusts the threshold for a surtax on pass-through entities (businesses like partnerships or S corporations), and introduces a new tax on pass-through entities with income exceeding a certain threshold, with a credit for members. Some provisions, like the surtax on pass-through entities and certain deduction changes, are set to take effect in 2025 or 2026, with specific dates outlined for different sections of the bill.

Budget and Finance

https://malegislature.gov/Bills/194/H4975