Bill > S1313

This bill proposes changes to Massachusetts tax laws, specifically to Chapter 62 of the General Laws, affecting personal income tax exemptions and tax rates for various types of income. For tax years beginning on or after January 1, 2014, the bill increases several personal exemption amounts, including a $7,900 exemption, a $10,300 exemption, and a $15,800 exemption, and introduces a new exemption for individuals aged 65 or older or disabled, offering a deduction based on their adjusted gross income up to certain limits. Additionally, the bill adjusts tax rates, setting the rate for Part A taxable income (capital gains, interest, and dividends) at 8.95%, Part B taxable income at 5.95%, and Part C taxable income (other income) at 8.95%. A special provision is made for certain investments in corporations domiciled in Massachusetts that meet specific criteria, including a date of incorporation after January 1, 2011, less than $50 million in assets at the time of investment, and being held for at least three years, which will be taxed at a reduced rate of 3%. This reduced rate also applies to investments made within five years of incorporation that qualify as "qualified small business stock" under federal tax law, even if the corporation is not a C corporation.