Amendment ID: S2856-10

Amendment 10

Trade and Investment

Messrs. Moore and Tarr move that the proposed new text be amended by inserting after section __ the following section:-

“SECTION__.  Subsection (d) of section 2A of chapter 63, as so amended by Chapter 50 of the Acts of 2023, is hereby amended by striking out paragraph (xii)(B) and inserting in place thereof the following:

(B) The amount of interest, dividends, net gains, but not less than zero, and other income from investment assets and activities and from trading assets and activities to be attributed to the commonwealth and included in the numerator shall be determined by multiplying all such income from such assets and activities by a fraction, the numerator of which shall be the total receipts included in the numerator pursuant to paragraphs (i) through (x), and the denominator of which shall be all total receipts of the taxpayer included in the denominator other than interest, dividends, net gains, but not less than zero, and other income from investment assets and activities and from trading assets and activities.

(C) At the election of the taxpayer the amount of interest, dividends, net gains, but not less than zero, and other income from investment assets and activities and from trading assets and activities shall be included in the receipts factor. The numerator shall be determined by multiplying the total amount of receipts under this clause by a fraction, the numerator of which is the average value of the assets which generate the receipts which are properly assigned to a regular place of business of the institution within this Commonwealth and the denominator of which is the average value of all such assets.

(1) Upon making this election by the institution for tax imposed for a taxable year beginning on or after January 1, 2025, the institution shall use the method on all subsequent returns unless the institution receives prior permission from the Department of Revenue to use a different method.

(2) The taxpayer shall have the burden of proving that an investment asset or activity or trading asset or activity was properly assigned to a regular place of business outside of the commonwealth by demonstrating that the day-to-day decisions regarding the asset or activity occurred at a regular place of business outside the commonwealth. Where the day-to-day decisions regarding an investment asset or activity or trading asset or activity occur at more than one regular place of business and one such regular place of business is in the commonwealth and one such regular place of business is outside the commonwealth, such asset or activity shall be considered to be located at the regular place of business of the taxpayer where the investment or trading policies or guidelines with respect to the asset or activity are established. Unless the taxpayer demonstrates to the contrary, such policies and guidelines shall be presumed to be established at the commercial domicile of the taxpayer.”