Bill > H2650

This bill proposes to amend Massachusetts General Laws, Chapter 63, concerning the taxation of financial institutions. Specifically, it aims to allow banks and utilities to carry forward net operating losses (NOLs) for tax purposes, which is a deduction for losses sustained in previous tax years. The bill modifies the definition of "Net income" to permit NOLs sustained in taxable years beginning on or after January 1, 2015, to be carried forward for up to 20 years, but not carried back. Importantly, these NOL carry-forwards for financial institutions will not be allowed as a deduction for tax years beginning before January 1, 2017. The bill also makes a technical correction to a cross-reference within the law and specifies effective dates, with Section 1 applying to tax years beginning on or after January 1, 2014, and Sections 2 and 3 applying to tax years beginning on or after January 1, 2015, with specific provisions for the start of the carry-forward period for certain short-period tax years.