Bill > S1345

This bill, titled "An Act to abolish the sting tax," proposes to amend Chapter 63 of the General Laws by striking out section 32D and replacing it with new language. The core of the change is to modify how certain business corporations, specifically S corporations and qualified subchapter S subsidiaries (entities defined under section 1361 of the Internal Revenue Code), calculate their net income for the purpose of an excise tax. The bill clarifies that for these entities, net income will be determined by taking into account Subchapter S of the Code, meaning income or losses are treated as if they were directly incurred by the owner. For S corporations, income is included in the net income measure if it's taxed to the S corporation for federal purposes, and for qualified subchapter S subsidiaries, income is included if it would have been taxed to the subsidiary as a separate corporation for federal purposes. This change aims to simplify or alter the tax calculation for these specific business structures.