Budget Amendment ID: FY2021-S4-82
OTH 82
Revenue For A Strong Commonwealth
Ms. Comerford, Ms. Rausch, Mr. Eldridge, Ms. Chang-Diaz, Ms. Jehlen, Messrs. Brady, Feeney and Montigny moved that the proposed new text be amended by adding the following sections:-
SECTION XX. Subsection (e) of section 1 of chapter 62 of the General Laws is hereby amended by striking out the second sentence and inserting in place thereof 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 XX. 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 50 per cent of amounts included in federal gross income pursuant to section 951A of the Code.
SECTION XX. Section 3 of chapter 62 of the General Laws is hereby amended by adding the following part:-
D. In determining the Part A and Part C taxable income of persons who are 65 or older, or who are disabled, an exemption shall be allowed upon the sum of the Part A and Part C adjusted gross income of such persons in an amount equal to the lesser of $2500 and one third of the sum of such Part A and Part C income for a single person, or a married person filing a separate return, whose total federal adjusted gross income is less than $40,000, and in an amount equal to the lesser of $5000 and one third of the sum of the Part A and Part C income for a married couple filing a joint return whose total federal adjusted gross income is less than $80,000, provided, however, that if only one spouse is 65 or older or is disabled, the exemption shall not exceed $2,500.
SECTION XX. Subsection (a) of section 4 of chapter 62 of the General Laws is hereby amended by striking out subsection (2) and inserting in place thereof the following:-
(2) Part A taxable income consisting of interest and dividends shall be taxed at the rate of 8.95 per cent.
SECTION XX. Section 4 of chapter 62 of the General Laws is hereby amended by striking out subsection (c) and inserting in place thereof the following:-
(c) Part C taxable income shall be taxed at the rate of 8.95 percent, excepting Part C taxable income derived from the sale of investments which: (1) are in a corporation which is domiciled in the commonwealth with a date of incorporation on or after January 1, 2011 which has less than $50 million in assets at the time of investment and complies with subsections (e)(1), (e)(2), (e)(5), and (e)(6) of Section 1202 of the Internal Revenue Service Code; and (2) are held for 3 years or more, which shall be taxed at a rate of 3 per cent; provided, however, that in order to qualify for the 3 per cent rate, such investments shall be made within 5 years of the date of incorporation and, to the extent consistent with the provisions of this subsection, shall be in stock in a corporation that satisfies the requirements for treatment as “qualified small business stock” under section 1202 (c) of the federal Internal Revenue Code, without regard to the requirement that the corporation be a C corporation.
SECTION XX. Part B of subsection (2) of section 6F of chapter 62 of the General Laws is hereby amended by striking out clause (C) and inserting in place thereof the following:-
(C) In the case of property acquired after December thirty-first, 2019 from a decedent within the meaning of section 1014(b) of the Code, the initial basis of such property shall be determined without application of the provisions of section 1014 of the Code.
SECTION XX. The definition of “Net income” in section 1 of chapter 63 of the General Laws is hereby amended by striking the sixth sentence and inserting in place thereof 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 XX. The definition of “Net income” in section 1 of chapter 63 of the General Laws is hereby further amended by striking subsection (g) and inserting in place thereof the following:-
(g) the deductions allowed by sections 245A, 250(a)(1)(A), and 965(c) of the Code.
SECTION XX. Section 2 of chapter 63 of the General Laws is hereby amended by striking subsection (b) and inserting in place thereof the following:-
(b) Any corporation taxable under this section shall pay an excise measured by its net income determined to be taxable under section 2A at the following rates:-- (i) for each taxable year beginning on or after January 1, 1995, but before January 1, 2010, 10.5 per cent; (ii) for each taxable year beginning on or after January 1, 2010, but before January 1, 2011, 10.0 per cent; (iii) for each taxable year beginning on or after January 1, 2011, but before January 1, 2012, 9.5 per cent; (iv) for each taxable year beginning on or after January 1, 2012, but before January 1, 2020, 9.0 per cent; or (v) for each taxable year beginning on or after January 1, 2020 and thereafter, 10.5 percent; provided, however, that in no case shall the excise imposed under this section amount to less than $456.
SECTION XX. Section 2A of chapter 63 of the General Laws is hereby amended by striking subsection (h) and inserting in place thereof 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 XX. Paragraph 4 of section 30 of chapter 63 of the General Laws is hereby amended by striking the fourth sentence and inserting in place thereof 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 XX. Said paragraph 4 of section 30 of said chapter 63, is hereby further amended by striking clause (viii) and inserting in place thereof the following: -- (viii) the deductions allowed by sections 245A, 250(a)(1)(A), and 965(c) of the Code.
SECTION XX. Section 38 of chapter 63 of the General Laws is hereby 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 XX. Paragraph (2) of subsection (a) of section 39 of chapter 63 of the General Laws is hereby amended by striking subparagraph (i) and inserting in place thereof the following:-
(i) For tax years beginning before January 1, 2010, 9.5 per cent of its net income determined to be taxable in accordance with this chapter; (ii) for tax years beginning on or after January 1, 2010, but before January 1, 2011, 8.75 per cent of its net income determined to be taxable in accordance with this chapter; (iii) for tax years beginning on or after January 1, 2011, but before January 1, 2012, 8.25 per cent of its net income determined to be taxable in accordance with this chapter; (iv) for tax years beginning on or after January 1, 2012 but before January 1, 2020, 8.0 per cent of its net income determined to be taxable in accordance with this chapter; or, (v) for tax years beginning on or after January 1, 2020 and thereafter, 9.5 per cent of its net income determined to be taxable in accordance with this chapter.