AN ACT TO DECOUPLE FROM FEDERAL PRODUCTION ACTIVITY DEDUCTION.
Whereas , The deferred operation of this act would tend to defeat its purpose, which is to decouple from federal production activity deduction, 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. Paragraph (1) of subsection (d) of section 2 of chapter 62 of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by adding the following subparagraph:-
(O) The deduction allowed by section 199 of the Code, as amended and in effect for the current tax year.
SECTION 2. The definition of "Net income" in section 1 of chapter 63 of the General Laws is hereby amended by striking out clauses (c) and (d), as so appearing, and inserting in place thereof the following 3 clauses:-
(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 a state;
(d) the deduction allowed by section 168(k) of the Code; or
(e) the deduction allowed by section 199 of the Code.
SECTION 3. Paragraph 4 of section 30 of said chapter 63, as most recently amended by section 5 of chapter 143 of the acts of 2003, is hereby further amended by adding the following clause:-
(vi) the deduction allowed by section 199 of the Code.
SECTION 4. Paragraph (b) of subsection (1) of section 52A of said chapter 63, as appearing in the 2002 Official Edition, is hereby amended by striking out clauses (iii) and (iv) and inserting in place thereof the following 3 clauses:-
(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 a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, a territory or possession of the United States or a foreign country or a political subdivision of any of the foregoing,
(iv) the deduction allowed by section 168(k) of the Code, and
(v) the deduction allowed by section 199 of the Code.
SECTION 5. This act shall apply to taxable years beginning on or after January 1, 2005.