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The 193rd General Court of the Commonwealth of Massachusetts

Section 38F: Deduction from net income for compensation paid to individuals employed by eligible business facility domiciled in present or former eligible section of substantial poverty

[ Introductory paragraph effective until May 30, 2023. For text effective May 30, 2023, see below.]

  Section 38F. In determining the net income subject to tax under this chapter, a business corporation may deduct, in addition to any other allowable deduction under this chapter, an amount equal to twenty-five per cent of the compensation paid during the taxable year to individuals employed in an eligible business facility, as defined in section eleven of chapter twenty-three B, and either:

[ Introductory paragraph as amended by 2023, 7, Sec. 228 effective May 30, 2023. See 2023, 7, Sec. 298. For text effective until May 30, 2023, see above.]

  In determining the net income subject to tax under this chapter, a business corporation may deduct, in addition to any other allowable deduction under this chapter, an amount equal to twenty-five per cent of the compensation paid during the taxable year to individuals employed in an eligible business facility, as defined in section 60A of chapter 23A, and either:

[ Clause (i) effective until May 30, 2023. For text effective May 30, 2023, see below.]

  (i) domiciled in an eligible section of substantial poverty as defined in section eleven of chapter twenty-three B; or

[ Clause (i) as amended by 2023, 7, Sec. 228 effective May 30, 2023. See 2023, 7, Sec. 298. For text effective until May 30, 2023, see above.]

  (i) domiciled in an eligible section of substantial poverty as defined in section 60A of chapter 23A; or

  (ii) domiciled in an area which had been certified as such an eligible section of substantial poverty when the corporation first received a certificate of eligibility; provided, however, such individuals still live in the same city or town;

  and provided further such corporation has a certificate of eligibility with respect to such facility for the taxable year issued by the urban jobs incentive bureau of the Massachusetts office of business development. No deduction under this section shall exceed five thousand dollars for any qualifying individual.