AN ACT PROVIDING EQUITABLE TAX DEDUCTIONS FOR THE DEPRECIATION OF CERTAIN ASSETS.
Whereas , The deferred operation of this act would tend to defeat its purpose, which is to provide forthwith equitable tax deductions for the depreciation of certain assets, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Section 1 of chapter 62 of the General Laws, as appearing in the 2000 Official Edition, is hereby amended by striking out, in line 7, the figure "162(a)" and inserting in place thereof the following figure:- 62(a)(1).
SECTION 2. Paragraph (1) of subsection (d) of section 2 of said chapter 62, as so appearing, is hereby amended by adding the following subparagraph:-
(N) The deduction allowed by section 168(k) of the Internal Revenue Code, as amended and in effect for the current tax year.
SECTION 3. Section 40 of chapter 62C of the General Laws, as so appearing, is hereby amended by striking out, in lines 14, 17 and 19, the figure "45" and inserting in place thereof, in each instance, the following figure:- 120.
SECTION 4. The definition of "Net income" in section 1 of chapter 63 of the General Laws, as so appearing, is hereby amended by striking out clauses (b) and (c) and inserting in place thereof the following 3 clauses:-
(b) losses sustained in other taxable years;
(c) taxes on or measured by income, franchise taxes measured by net income, franchise taxes for the privilege of doing business and capital stock taxes imposed by any state; or
(d) the deduction allowed by section 168(k) of said Code.
SECTION 5. Section 30 of said chapter 63, as so appearing, is hereby amended by striking out, in line 127, the word "allowed." and inserting in place thereof the following:- allowed;
(iv) the deduction allowed by section 168(k) of said Code.
SECTION 6. Paragraph (b) of subsection (1) of section 52A of said chapter 63, as so appearing, is hereby amended by striking out clauses (ii) and (iii) and inserting in place thereof the following 3 clauses:-
(ii) losses sustained in other taxable years,
(iii) taxes on or measured by income, franchise taxes measured by gross or net income, franchise taxes for the privilege of doing business and capital stock taxes imposed by any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States or any foreign country, or a political subdivision of any of the foregoing, and
(iv) the deduction allowed by section 168(k) of said Code.
SECTION 7. The provisions of section 1 shall be effective for taxable years beginning on or after January 1, 1998.
SECTION 8. The provisions of sections 2, 4, 5 and 6 shall be effective for taxable years ending after September 10, 2001.
SECTION 9. The commissioner of revenue may issue any necessary rules or regulations to implement this act, including but not limited to, the waiver of interest and penalties for those taxpayers who filed tax returns under the provisions of chapter 62 or 63 of the General Laws and paid all taxes due with those returns prior to the passage of this act and utilized the provisions of section 168(k) of the federal Internal Revenue Code, as amended and in effect as of the date of filing of said return. Any waiver of interest or penalties shall be for a period of no more than 180 days after the due date of the return, regardless of any extension, and shall only apply to additional tax payments required due to the deduction allowed by section 168(k).
SECTION 10. The provisions of section 3 of this act shall take effect for returns required to be filed on or after January 1, 2002 and shall cease to be effective for returns required to be filed on or after January 1, 2003.