Bill > H2486

This bill directs the department of revenue to study the creation of a tax incentive program designed to encourage Massachusetts residents to attract out-of-state businesses to the state. The proposed program would reward individuals or businesses who successfully bring new companies to Massachusetts by providing them with tax credits that can offset their current or future tax liabilities. Specifically, a percentage of the new tax revenue generated by these attracted businesses would be credited back to the resident responsible for the attraction, with the compensation model disbursing 20% in the first year, 10% in the second, and 5% in the third, applied directly against state and local taxes. While no actual money would be disbursed, any excess credit could be applied to future tax liabilities, potentially leading to refund checks for certain deducted taxes. The bill also emphasizes the confidentiality of tax data from new businesses, using a protection similar to executive sessions for legislators. The department is required to submit its findings and any legislative recommendations to the Joint Committee on Revenue by December 1, 2015.