Amendment #267 to H4200

Urban Revitalization Tax Credit

Representatives Golden of Lowell, Nangle of Lowell and Mom of Lowell move to amend the bill by adding the following section:    

“Section XXXX.  Massachusetts General Laws Chapter 63 is hereby amended by adding after Section 38FF the following section:

Section 38GG

(a) For purposes of this section, the following terms shall have the following meanings unless the context clearly requires otherwise:

''Taxpayer'', a corporation or other entity subject to an excise imposed by this chapter.

(b)(1) There shall be established an urban revitalization tax credit.

(i) The secretary of the executive office of housing and economic development shall authorize annually, for the period beginning July 1, 2016 and ending December 31, 2027, under this section together with section 6J of chapter 62, an amount not to exceed $50,000,000 per year for the purpose of aiding in the rejuvenation of urban building infrastructure in the Commonwealth. The secretary of the executive office of housing and economic development shall determine the criteria for eligibility for the credit. Said criteria shall give preference to projects that are a) within a municipality with a population greater than 100,000 and less than 250,000 b) within a municipality where the median household income is below the commonwealth's average; c) within a municipality where there is a rate of educational attainment of a bachelor's degree or above that is below the commonwealth's average.

(2) A taxpayer allowed a credit under this section for a taxable year may carry over and apply to the excise imposed by this chapter in any of the succeeding 5 taxable years, the portion, as reduced from year to year, of those credits which exceed the excise for the taxable year.

(i) Credits allowed under this section which are provided to multiple owners of property shall be passed through to the persons designated as partners, members or owners, respectively, pro rata or pursuant to an executed agreement among the persons designated as partners, members or owners documenting an alternative distribution method without regard to their sharing of other tax or economic attributes of the entity.

(ii) Taxpayers eligible for an urban revitalization tax credit may, with prior notice to and in accordance with regulations adopted by the secretary, transfer the credits, in whole or in part, to an individual or entity, and the transferee shall be entitled to apply the credits against the excise with the same effect as if the transferee had incurred the expenditures itself. The transferee shall use the credit in the year it is transferred. If the credit allowable for any taxable year exceeds the transferee's excise liability for that tax year, the transferee may carry forward and apply in any subsequent taxable year, the portion, as reduced from year to year, of those credits which exceed such excise for the taxable year; but the carryover period shall not exceed 5 taxable years.

(f) The secretary shall prescribe regulations necessary to carry out this section.