SECTION 1. Chapter 63 of the General Laws as appearing in the 2012 official edition is hereby amended by inserting after section 38FF, the following section:-
Section 38GG. (a) A credit against taxes shall be allowed for donations to a fiduciary organization for distribution to individual development accounts established under in line item 7004-9317 of chapter 139 of the acts of 2006. The credit shall equal the lesser of $75,000 or 75 per cent of the donation amount.
(b) If a credit allowed under this section is claimed, the amount upon which the credit is based that is allowed or allowable as a deduction from federal taxable income under section 170 of the Internal Revenue Code shall be added to federal taxable income in determining Massachusetts taxable income. As used in this subsection, the amount upon which a credit is based is the allowed credit divided by 75 per cent.
(c ) The allowable tax credit that may be used in any 1 tax year shall not exceed the tax liability of the taxpayer.
(d) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer’s tax liability for the next succeeding tax year. Any tax credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year. Any tax credit not used in the second succeeding tax year may be carried forward and used in the third succeeding tax year, but may not be carried forward for any tax year thereafter.
(e) Community based organizations that operate financial literacy and asset-specific training for individual development account holders must include an option for individual development account holders to receive such training in a manner appropriate to the learning style of individuals with autism and other developmental disabilities.
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