Amendment #435 to H4789

SSF Deferred Tax Relief

Mr. O'Day of West Boylston moves to amend the bill by inserting at the end thereof the following section:

XX. (1) Notwithstanding any general or special law to the contrary, if the enactment of single sales factor apportionment under section 27 or section 31 of Chapter 50, Acts of 2023 results in an increase to a combined group's net deferred tax liability, the combined group shall be entitled to a deduction, as and to the extent determined in this section. For purposes of this section, "net deferred tax liability" shall mean the net increase, if any, in deferred tax liabilities minus the net increase, if any, in deferred tax assets of the combined group, as computed in accordance with generally accepted accounting principles, that would otherwise result from the imposition of the provisions of this act described in the pertinent provisions of paragraph (2) of this section. Only publicly traded companies, including affiliated corporations participating in the filing of a publicly traded company's financial statements prepared in accordance with generally accepted accounting principles, as of the effective date of this act, shall be eligible for this deduction.

(2) For the 7-year period beginning with the combined group's taxable year that begins in 2026, a combined group shall be entitled to a deduction equal to one-seventh of the amount necessary to offset the increase in net deferred tax liability, as computed in accordance with generally accepted accounting principles, that would result from the imposition of the single sales factor apportionment requirements under section 38 of chapter 63 of the General Laws but for the deduction provided under this section.

(3) Any taxpayer intending to claim a deduction under this section shall file a statement with the commissioner on or before July 1, 2025 specifying the total amount of the deduction which the taxpayer claims. The statement shall be made on such form and in such manner as prescribed by the commissioner and shall contain such information or calculations as the commissioner may specify. No deduction shall be allowed under this section for any taxable year except to the extent claimed in the manner prescribed on or before July 1, 2025. This paragraph does not limit the authority of the commissioner under chapter 62C to review or redetermine the proper amount of any deduction claimed, whether on the statement required under this paragraph or on a tax return for any taxable year. The commissioner shall report the sum of the deductions claimed by all taxpayers under this section to the chairs of the joint committee on revenue and the chairs of the house and senate committees on ways and means no later than October 1, 2025.

(4) This act shall take effect upon enactment.