Bill > S1473

This bill proposes to amend Section 20 of Chapter 63 of the General Laws to allow domestic life insurance companies, which are companies incorporated in the state, to claim a credit against their taxes. This credit is intended to offset "retaliatory taxes," which are taxes imposed by other states on out-of-state insurance companies if that company's home state taxes the other state's companies at a higher rate. Specifically, domestic life insurers that pay these retaliatory taxes to other states where they operate will be eligible for a credit equal to 15% of their retaliatory tax liability in the first year, with this credit increasing by 5% annually until it reaches 50% of the retaliatory tax liability. This provision will apply to tax years beginning on or after January 1, 2015.