HOUSE DOCKET, NO. 388        FILED ON: 1/12/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2708

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Christine P. Barber and Erika Uyterhoeven

_________________

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.

_______________

PETITION OF:

 

Name:

District/Address:

Date Added:

Christine P. Barber

34th Middlesex

1/12/2023

Erika Uyterhoeven

27th Middlesex

1/19/2023

Lindsay N. Sabadosa

1st Hampshire

1/20/2023

Rebecca L. Rausch

Norfolk, Worcester and Middlesex

1/21/2023

James K. Hawkins

2nd Bristol

1/27/2023

James C. Arena-DeRosa

8th Middlesex

1/30/2023

David Henry Argosky LeBoeuf

17th Worcester

1/30/2023

Vanna Howard

17th Middlesex

1/30/2023

Steven Owens

29th Middlesex

1/31/2023

Michael D. Brady

Second Plymouth and Norfolk

1/31/2023

Samantha Montaño

15th Suffolk

2/2/2023

Mike Connolly

26th Middlesex

2/2/2023

Antonio F. D. Cabral

13th Bristol

2/2/2023

Steven Ultrino

33rd Middlesex

2/2/2023

Carmine Lawrence Gentile

13th Middlesex

2/2/2023

Michelle M. DuBois

10th Plymouth

2/7/2023

James B. Eldridge

Middlesex and Worcester

2/10/2023

Tram T. Nguyen

18th Essex

2/21/2023

Rodney M. Elliott

16th Middlesex

2/23/2023

Natalie M. Higgins

4th Worcester

2/23/2023

Rita A. Mendes

11th Plymouth

4/11/2023

Manny Cruz

7th Essex

12/8/2023


HOUSE DOCKET, NO. 388        FILED ON: 1/12/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2708

By Representatives Barber of Somerville and Uyterhoeven of Somerville, a petition (accompanied by bill, House, No. 2708) of Christine P. Barber, Erika Uyterhoeven and others relative to further regulating the inclusion of federal gross income in the calculation of the taxation of corporations and to create progressive revenue.  Revenue.

 

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 2826 OF 2021-2022.]

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Ninety-Third General Court
(2023-2024)

_______________

 

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, 2023.