HOUSE DOCKET, NO. 2111        FILED ON: 2/16/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2863

The Commonwealth of Massachusetts

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PRESENTED BY:

Josh S. Cutler

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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 relative to the WorkAbility Tax Credit.

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PETITION OF:

HOUSE DOCKET, NO. 2111        FILED ON: 2/16/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2863

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 relative to the WorkAbility Tax Credit.

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

SECTION 1. Section 6 of chapter 62 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by adding the following subsection:-

(x)(1) For the purposes of this subsection, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Employer”, a person who employs no more than 50 employees.

“Qualified employee with a disability”, a resident of the commonwealth, who is certified by the Massachusetts rehabilitation commission as meeting the definition of disability in the 42 U.S.C. § 12102 and has a primary place of employment in the commonwealth.

(2) An employer shall be allowed a credit against the tax liability imposed by this chapter equal to $5,000 or 30 per cent of the wages paid to each qualified employee with a disability in the first taxable year of employment, whichever is less. An employer shall be allowed a credit against the tax liability imposed by this chapter equal to $2,500 or 30 per cent of the wages paid to each qualified employee with a disability in any subsequent taxable year of employment, whichever is less.

(3) To be eligible for the credit allowed by this subsection the employer shall receive certification from the Massachusetts rehabilitation commission that the employee qualifies not later than the day the employee begins work; provided, however, that the commissioner may establish reasonable exceptions to this paragraph by regulation.

(4) An employer that is eligible for and claims the credit allowed under this section in a taxable year with respect to a qualified employee with a disability shall be eligible for the credit in the subsequent taxable year with respect to such qualified employee. No credit allowed pursuant to this subsection shall be transferable.

(5) The secretary of health and human services, in consultation with the commissioner, shall promulgate regulations establishing an application process for the credit.

(6) The credit under this subsection shall be attributed on a pro rata basis to the owners, partners or members of the person allowed the credit under this subsection, and shall be allowed as a credit against the tax due pursuant to this chapter of such owners, partners or members, in a manner determined by the commissioner.

SECTION 2. Chapter 63 of the General Laws is hereby amended by inserting after section 35HH the following section:-

Section 35II. (a) For the purposes of this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:

“Employer”, a person who employs no more than 50 employees.

“Qualified employee with a disability”, a resident of the commonwealth, who is certified by the Massachusetts rehabilitation commission as meeting the definition of disability in the 42 U.S.C. § 12102 and has a primary place of employment in the commonwealth.

(b) An employer shall be allowed a credit against the tax liability imposed by this chapter equal to $5,000 or 30 per cent of the wages paid to each qualified employee with a disability in the first taxable year of employment, whichever is less. An employer shall be allowed a credit against the tax liability imposed by this chapter equal to $2,500 or 30 per cent of the wages paid to each qualified employee with a disability in any subsequent taxable year of employment, whichever is less.

(c) To be eligible for the credit allowed by this section the employer shall receive certification from the Massachusetts rehabilitation commission that the employee qualifies not later than the day the employee begins work; provided, however, that the commissioner may establish reasonable exceptions to this section by regulation.

(d) An employer that is eligible for and claims the credit allowed under this section in a taxable year with respect to a qualified employee with a disability shall be eligible for the credit in the subsequent taxable year with respect to such qualified employee. No credit allowed pursuant to this section shall be transferable.

(e) The secretary of health and human services, in consultation with the commissioner, shall promulgate regulations establishing an application process for the credit.

(f) The credit under this section shall be attributed on a pro rata basis to the owners, partners or members of the person allowed the credit under this section, and shall be allowed as a credit against the tax due pursuant to this chapter of such owners, partners or members, in a manner determined by the commissioner.

SECTION 3.  Sections 1 and 2 shall be effective for tax years beginning on or after January 1, 2022.

SECTION 4. This bill shall be designated as the Workability Tax Credit Bill.