HOUSE DOCKET, NO. 452        FILED ON: 1/22/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2826

The Commonwealth of Massachusetts

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PRESENTED BY:

Christine P. Barber

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to close corporate tax loopholes and create progressive revenue.

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PETITION OF:

HOUSE DOCKET, NO. 452        FILED ON: 1/22/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2826

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Second General Court
(2021-2022)

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An Act to close corporate tax loopholes and create progressive revenue.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION A.  Subsection (e) of Section 1 of Chapter 62 of the General Laws, as most recently amended by chapter 273 of the Acts of 2018, is hereby further amended by striking the second sentence and replacing it with the following: -- Amounts included in federal gross income pursuant to section 951 of the Code shall be treated as dividends under this chapter; provided that amounts included in federal gross income pursuant to section 951A of the Code shall not be treated as dividends.

SECTION B. Subsection (a) of Part B. of Section 3 of said Chapter 62 of the General Laws is hereby further amended by inserting at the end thereof the following: -- (20) An amount equal to fifty percent of amounts included in federal gross income pursuant to section 951A of the Code.

SECTION C. The definition of “Net income” in Section 1 of Chapter 63 of the General Laws, as most recently amended by chapter 273 of the Acts of 2018, is hereby further amended by striking the sixth sentence and replacing it with the following: -- For purposes of this definition, amounts included in federal gross income pursuant to section 951 of the Code shall be treated as dividends; provided that amounts included in federal gross income pursuant to section 951A of the Code shall not be treated as dividends.

SECTION D. The definition of “Net income” in Section 1 of Chapter 63 of the General Laws, as most recently amended by chapter 273 of the Acts of 2018, is hereby further amended by striking subsection (g) and replacing it with the following: -- (g) the deductions allowed by sections 245A, 250(a)(1)(A), and 965(c) of the Code.

SECTION E. Section 2A of said chapter 63, as so amended, is hereby further amended by striking subsection (h) and replacing it with the following: -- (h) For purposes of this section, dividends that are deemed to be received from an entity, including amounts included in federal gross income pursuant to section 951 of the Code, shall not be considered receipts, and amounts included in federal gross income pursuant to section 951A of the Code also shall not be considered receipts.

SECTION F. Paragraph 4 of Section 30 of said chapter 63, as so amended, is hereby further amended by striking the fourth sentence and replacing it with the following: -- For purposes of this section and subsection (a) of section 38, amounts included in federal gross income pursuant to section 951 of the Code shall be treated as dividends; provided that amounts included in federal gross income pursuant to section 951A of the Code shall not be treated as dividends.

SECTION G.  Said Paragraph 4 of Section 30 of said chapter 63, as so amended, is hereby further amended by striking clause (viii) and replacing it with the following: -- (viii) the deductions allowed by sections 245A, 250(a)(1)(A), and 965(c) of the Code.

SECTION H.  Section 38 of said chapter 63, as so amended, is hereby further amended by inserting, after the word “dividends” in the first sentence of the second paragraph of subsection (f) the following: -- , amounts included in federal gross income pursuant to section 951A of the Code.

SECTION I. The provisions of this act shall apply to all tax years beginning on or after January 1, 2021.