Amendment ID: S2397-49

Amendment 49

Closing corporate tax loopholes

Ms. Rausch and Ms. Jehlen move that the proposed new text be amended by inserting after section 1 the following new section:-

SECTION 1A.  Subsection (e) of section 1 of chapter 62 of the General Laws, as so appearing, is hereby amended by striking out the second sentence and inserting in place thereof the following words:- “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.”;

and further amended by inserting after section 2 the following new section:-

SECTION 2A. Subsection (a) of subclause B of section 3 of said chapter 62 of the General Laws, as so appearing, 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.”;

and further amended by inserting after section 21 the following new sections:-

SECTION 21A. Section 1 of chapter 63 of the General Laws is hereby amended by striking out the sixth sentence in the definition of “Net income” and inserting in place thereof the following sentence:- “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 21B. Said section 1 of said chapter 63, as so appearing, is hereby further amended by striking out subsection (g) and inserting in place thereof the following subsection:- “(g) the deductions allowed by sections 245A, 250(a)(1)(A), and 965(c) of the Code.” 

SECTION 21C. Section 2A of said chapter 63, as so appearing, is hereby amended by striking out subsection (h) and inserting in place thereof the following subsection:- “(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 21D. Paragraph 4 of section 30 of said chapter 63, as so appearing, is hereby amended by striking out the fourth sentence and inserting in place thereof the following sentence:- “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 21E. Said paragraph 4 of said section 30 of said chapter 63, as so amended, is hereby further amended by striking out clause (viii) and inserting in place thereof  the following clause:- “(viii) the deductions allowed by sections 245A, 250(a)(1)(A), and 965(c) of the Code.”

SECTION 21F. Section 38 of said chapter 63, as so appearing, is hereby amended by inserting after the word “dividends” in the first sentence of the second paragraph of subsection (f) the following words:- “, amounts included in federal gross income pursuant to section 951A of the Code”.