Bill > H3663

This bill aims to clarify the net-worth measure of the corporate excise. It does this by specifying that the taxpayer's treatment of an item on their books, such as whether it is considered debt or equity, will be controlling unless the Commissioner establishes that it is not in accordance with the accounting standards used by the taxpayer. The bill also allows the Commissioner to disallow any reserve established for an asset that is not reasonable and proper. Additionally, the bill excludes from the corporation's taxable income any item of income that is exempt from U.S. federal income tax due to a treaty or other provision. The bill is effective upon passage and applies to all open tax years, as well as tax years beginning on or after January 1, 2019.

Budget and Finance

https://malegislature.gov/Bills/190/H3663