SECTION 1. Section 1 of chapter 64H of the General Laws, as appearing in the 2012 Official Edition, is hereby amended by inserting after the definition of “Services” the following definition:-

“Small business”, a business entity, including its affiliates, that: (i) is independently owned and operated; (ii) has a principal place of business in the commonwealth; and (iii) would be defined as a “small business” under applicable federal law, as established in the United States Code and promulgated from time to time by the United States Small Business Administration.

SECTION 2. Section 2 of said chapter 64H, as so appearing is hereby amended by adding the following paragraph:-

Notwithstanding the provisions of this section, the excise imposed upon sales for capital investment to a small business by any vendor, or services performed in the commonwealth for capital investment shall be imposed at the following rates: (1) sales or services from $91,000 to no more than $180,000 shall be taxed at 6 per cent of the receipt from such sale or service; (2) sales or services greater than $180,000 to no more than $270,000 shall be taxed at 5.75 per cent of the receipt from such sale or service; (3) sales or services greater than $270,000 shall be taxed at 5.5 per cent of the receipt from such sale or service.