Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H42 Compare Versions

Only one version of the bill is available at this time.

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2	2	HOUSE DOCKET, NO. 42 FILED ON: 3/1/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 42
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	OFFICE OF THE GOVERNOR
7	7	COMMONWEALTH OF MASSACHUSETTS
8	8	STATE HOUSE · , MA
9	9	MAURA T. HEALEY
10	10	GOVERNOR
11	11	KIMBERLY DRISCOLL
12	12	LIEUTENANT GOVERNOR
13	13	March 1, 2023
14	14	To the Honorable Senate and House of Representatives,
15	15	I am filing for your consideration a bill entitled “An Act Creating Tax Relief for
16	16	Affordability, Competitiveness, and Equity.” This tax package, projected to cost $742 million
17	17	net to budget in fiscal year 2024 (FY24), is an integral part of my FY24 budget proposal. It
18	18	draws on the consensus around tax relief that began to emerge last year and delivers on my
19	19	promise to help families across the Commonwealth.
20	20	Extraordinary tax growth over the past several years, together with prudent fiscal
21	21	management, allows me to propose tax relief which is both responsible and meaningful. The
22	22	bill’s total impact of $859 million, including $117 million that would otherwise go to long-term
23	23	reserves, stems primarily from substantial tax cuts in four key areas.
24	24	The Child and Family Tax Credit is the $458 million centerpiece of our Administration’s
25	25	tax proposal. It hits squarely on affordability – for families with young children or disabled or
26	26	senior dependents; equity – for low-income caregivers who could use a break in the form of a
27	27	refundable credit; and competitiveness – for employers seeking to attract and retain workers in a
28	28	state with high child care costs. This expanded and simplified credit would replace two
29	29	interrelated dependent credits. The new credit is uncapped and is not limited by income: all filers
30	30	will be able to claim $600 for each qualifying dependent, including children under 13, disabled
31	31	adults, and seniors. The $600 refundable credit would provide relief for over 700,000 taxpayers
32	32	who are supporting over 1,000,000 qualifying dependents across the Commonwealth. 2 of 3
33	33	A proposed reduction in the estate tax would increase the Commonwealth’s
34	34	competitiveness: Massachusetts is one of only 12 states and Washington, D.C., that impose an
35	35	estate tax. In addition, Massachusetts has the lowest threshold in the nation for estates subject to
36	36	tax. Under current law, estates with a gross value over $1 million are subject to taxation, starting
37	37	with the first dollar at a rate of 0.8% and growing to a marginal rate of 16%. This bill would
38	38	establish a non-refundable $182,000 credit for each estate. The credit would eliminate all taxes
39	39	on estates worth $3 million or less in net taxable value, while providing $182,000 of tax relief on
40	40	larger estates. This change would benefit all estate tax filers and provide reassurance to aging
41	41	Massachusetts residents and their families at a cost of $167 million in FY24 ($272 million for a
42	42	full year).
43	43	Two provisions touch on affordability of housing by increasing the maximum renter
44	44	deduction, as well as the maximum senior circuit breaker tax credit for low-income seniors with
45	45	high property tax costs. Current law allows filers to deduct up to 50% of the cost of the rent for
46	46	their primary residence, up to $3,000; this bill would increase the maximum deduction to $4,000,
47	47	saving renters $40 million annually. Further, the package would double the maximum Senior
48	48	Circuit Breaker credit from approximately $1,200 up to approximately $2,400. This credit,
49	49	indexed to inflation, provides critical relief to low-income homeowners and renters aged 65 or
50	50	older, and would result in $60 million in tax relief.
51	51	By aligning the short-term capital gains tax rate with the 5% rate that applies to nearly all
52	52	income, including long term capital gains, this bill would address an aspect of Massachusetts’ tax
53	53	structure that is out of step with nearly all other states. Because capital gains taxes above a
54	54	threshold of approximately $1.4 billion are not available to the budget under current law, this
55	55	change can provide $117 million in tax cuts, and bring the tax on capital gains more in line with
56	56	other states for over 150,000 taxpayers, without having any impact on budgetary spending.
57	57	Ten smaller changes bring $17 million in more targeted tax law improvements that would
58	58	also have meaningful impact on key priorities, including housing, workforce, the environment,
59	59	and Massachusetts’ vibrant arts, culture and agricultural sectors.
60	60	In the area of affordability and equity, this bill would increase the statewide cap on the
61	61	Housing Development Incentive Program (HDIP) from $10 million to $50 million on a one-time
62	62	basis, and thereafter to $30 million annually. HDIP expands the production of affordable
63	63	housing through state tax credits to developers of market rate housing in Gateway Cities. The
64	64	package expands occupations eligible for the apprenticeship tax credit and raises a statewide cap
65	65	on the program to give it room to grow. The bill exempts any employer assistance with student
66	66	loan repayment from taxable income for the employee. The expansion of commuter transit
67	67	benefits to include regional transit passes and bike commuter expenses will help address
68	68	commuting costs in a climate-friendly fashion and statewide. 3 of 3
69	69	A series of targeted tax cuts are potentially of great value for residents of environmental
70	70	justice and rural communities. The bill doubles the deductions for lead paint abatement to $3,000
71	71	for full and $1,500 for partial abatement. It likewise doubles the maximum credit for septic tank
72	72	repair or replacement in a primary residence to $12,000, and allows taxpayers to access these
73	73	credits on a more accelerated schedule. The bill extends the expiring brownfields tax credit
74	74	program through 2028, to continue support for cleanup of contaminated properties.
75	75	Lastly, the bill touches on target opportunities for competitiveness in regionally and
76	76	culturally important activities. A new live theater tax credit would enable qualifying
77	77	productions, selected through a competitive award process, to claim a credit for a share of
78	78	payroll, production, and transportation costs. The bill would increase the dairy tax credit
79	79	statewide cap from $6 million to $8 million, further insulating farmers when wholesale milk
80	80	prices decline. Finally, the proposal would adjust the allowable alcohol content in cider and still
81	81	wine to allow locally produced hard cider and still wine makers access to a more favorable tax
82	82	rate.
83	83	I believe you will recognize and like many elements of this bill. I look forward to
84	84	working with you over the coming months on finalizing a tax package for the benefit of our
85	85	Commonwealth.
86	86	Respectfully Submitted,
87	87	Maura T. Healey,
88	88	Governor 1 of 21
89	89	HOUSE . . . . . . . . . . . . . . . No. 42
90	90	The Commonwealth of Massachusetts
91	91	_______________
92	92	In the One Hundred and Ninety-Third General Court
93	93	(2023-2024)
94	94	_______________
95	95	An Act creating tax relief for affordability, competitiveness and equity.
96	96	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
97	97	of the same, as follows:
98	98	1 SECTION 1. Chapter 23A of the General Laws, as appearing in the 2020 Official
99	99	2Edition, is hereby amended by inserting after section 3L the following section:-
100	100	3 Section 3M. (a) (1) For the purposes of this section the term “office” shall mean the
101	101	4Massachusetts office of business development established in section 1 of chapter 23A, or any
102	102	5constituent office thereof.
103	103	6 (2) There is hereby established a pilot program for a live theater tax credit for which a
104	104	7live theater company doing business with a Massachusetts-based theater venue, theater company,
105	105	8theater presenter or producer may be eligible. The credit shall be established to support the
106	106	9expansion of pre-Broadway productions, pre-off Broadway productions and national tour
107	107	10launches, as those terms are defined in paragraph (1) of subsection (dd) of section 6 of chapter 62
108	108	11and subsection (a) of section 38NN of chapter 63 of the General Laws, and shall assist in the
109	109	12development of long run show development and growth. 2 of 21
110	110	13 (b)(1) The office, directly or through a constituent office, shall run a competitive grant
111	111	14program to award live theater tax credits. An applicant may only be awarded a tax credit if they
112	112	15meet the requisite criteria and qualifications for the credit as outlined in this section and
113	113	16subsection (dd) of chapter 62 of the General Laws or section 38NN of chapter 63 of the General
114	114	17Laws. The office shall establish criteria for prioritization of credits, which may include
115	115	18anticipated economic impact and other factors at the discretion of the office. No more than
116	116	19$5,000,000 may be awarded in any calendar year.
117	117	20 (2) An applicant for a live theater tax credit shall properly prepare, sign, and submit to the
118	118	21office an application for certification of the theater production. The application shall include
119	119	22information and data the office deems necessary for the evaluation and administration of the
120	120	23application, including, but not limited to, any information about the theater production company
121	121	24or its related partners or presenters and a specific Massachusetts live theater or musical
122	122	25production. The eligible theater production budget shall be not less than $100,000. The
123	123	26maximum credit for any production shall not be more than $5,000,000, or a lesser amount as
124	124	27determined by the office.
125	125	28 (3) The office shall review completed applications, determine whether they meet the
126	126	29requisite criteria and qualifications for certification, and award tax credits at their sole discretion.
127	127	30The office may issue a certification of the eligible theater production or presentation to the
128	128	31theater production company, co-producer or presenter and to the commissioner of revenue. The
129	129	32certification shall provide a unique identification number for the production and shall be a
130	130	33statement of conditional eligibility for the production. 3 of 21
131	131	34 (c) Upon completion of an eligible theater production for which a certification has been
132	132	35granted, the applicant shall properly prepare, sign, and submit to the office and the department of
133	133	36revenue a cost accounting in connection with the eligible theater production. The cost accounting
134	134	37shall contain a cost report and an accountant’s certification. In computing payroll costs,
135	135	38production and performance expenditures, and transportation expenditures for which a credit will
136	136	39be claimed, an eligible theater production shall subtract any state funds, state loans or state
137	137	40guaranteed loans. The office and commissioner of revenue may rely, without independent
138	138	41investigation, upon an accountant’s certification, in the form of an opinion, confirming the
139	139	42accuracy of the information included in the cost report.
140	140	43 (d) The office, in consultation with the commissioner of revenue, shall promulgate rules
141	141	44and regulations to carry out this section.
142	142	45 (e) The office, in conjunction with the commissioner of revenue, shall report on the
143	143	46impact of the live theater tax credit pursuant to subsection (dd) of section 6 of chapter 62 and
144	144	47section 38NN of chapter 63 of the General Laws and shall submit the report to the clerks of the
145	145	48house of representatives and the senate, the house and senate committees on ways and means and
146	146	49the joint committee on economic development and emerging technologies not later than
147	147	50December 31, 2028. The office and commissioner shall collaborate with the live theater industry
148	148	51to collect the relevant data for the report. Said report shall include data to assess the direct and
149	149	52indirect economic impacts of the live theater tax credit on the economy of the commonwealth,
150	150	53including estimates of theater tickets sales to domestic and international visitors, spending by
151	151	54live theater productions on adjacent businesses, wages paid for setting up and taking down
152	152	55productions, and impacts on businesses in proximity to theaters, including hotels and restaurants. 4 of 21
153	153	56 SECTION 2. Subparagraph (9) of paragraph (a) of part B of section 3 of chapter 62 of the
154	154	57General Laws, as so appearing, is hereby amended by striking out, in line 109, the figure “3,000”
155	155	58and inserting in place thereof the following figure:- 4,000.
156	156	59 SECTION 3. Subparagraph (15) of said paragraph (a) of said part B of said section 3 of
157	157	60said chapter 62, as so appearing, is hereby amended by inserting, in line 160, after the words
158	158	61“commuter boat”, the following words:-, or for regional transit authority passes, or for a
159	159	62bikeshare membership or for a bicycle including electric bikes, bicycle improvements, repair,
160	160	63and storage,”
161	161	64 SECTION 4. Said paragraph (a) of said part B of said section 3 of said chapter 62, as so
162	162	65appearing, is hereby further amended by adding the following subparagraph:-
163	163	66 (20) An amount equal to the amount of student loan payment assistance received by an
164	164	67individual from their employer during the taxable year, and not already excluded under section
165	165	68127 of the Code. For the purposes of this subparagraph, “student loan payment assistance” shall
166	166	69mean the payment of principal or interest on a qualified education loan, as defined in section 221
167	167	70of the Code.
168	168	71 SECTION 5. Paragraph (1) of subsection (a) of section 4 of said chapter 62, as so
169	169	72appearing, is hereby amended by inserting, in line 5, after the word “cent” the following words:-
170	170	73provided, however, that any gain from the sale or exchange of capital assets held for 1 year or
171	171	74less shall be taxed at the rate of 5 per cent.
172	172	75 SECTION 6. Subsection (e) of section 6 of said chapter 62, as so appearing, is hereby
173	173	76amended by striking out, in line 75, the words “one thousand five hundred dollars” and inserting
174	174	77in place thereof the following words:- $3,000. 5 of 21
175	175	78 SECTION 7. Said subsection (e) of said section 6 of said chapter 62, as so appearing, is
176	176	79hereby further amended by striking out, in line 86, the words “five hundred dollars” and inserting
177	177	80in place thereof the following words:- $1,000.
178	178	81 SECTION 8. Subsection (i) of said section 6 of said chapter 62, as so appearing, is
179	179	82hereby amended by striking out, in line 273, the figure “15,000” and inserting in place thereof
180	180	83the following figure:- 30,000.
181	181	84 SECTION 9. Said subsection (i) of said section 6 of said chapter 62, as so appearing, is
182	182	85hereby further amended by striking out, in line 277, the figure “1,500” and inserting in place
183	183	86thereof the following figure:- 4,000.
184	184	87 SECTION 10. Said subsection (i) of said section 6 of said chapter 62, as so appearing, is
185	185	88hereby further amended by striking out, in line 279, the figure “6,000” and inserting in place
186	186	89thereof the following figure:- 12,000.
187	187	90 SECTION 11. Paragraph (1) of subsection (j) of said section 6 of said chapter 62 of the
188	188	91General Laws, as so appearing, is hereby amended by striking out, in line 290, the figure “2023”
189	189	92and inserting in place thereof the following figure:- 2028.
190	190	93 SECTION 12. Said paragraph (1) of said subsection (j) of said section 6 of said chapter
191	191	9462, as so appearing, is hereby further amended by striking out, in line 296, the figure “2024” and
192	192	95inserting in place thereof the following figure:- 2029.
193	193	96 SECTION 13. Paragraph (4) of said subsection (j) of said section 6 of said chapter 62, as
194	194	97so appearing, is hereby amended by adding the following sentence:- For the purpose of the
195	195	98Brownfields Redevelopment Fund, state financial assistance shall mean the amount of any grant 6 of 21
196	196	99or principal amount of any loan, but shall not include any loan principal repaid as of the date the
197	197	100credit application is filed with the commissioner. Net response and removal costs shall not
198	198	101include any reimbursement that is received, or will be received, by the applicant, or any amounts
199	199	102paid on behalf of the applicant from any source for these costs.
200	200	103 SECTION 14. Paragraph (2) of subsection (k) of said section 6 of said chapter 62, as so
201	201	104appearing, is hereby amended by striking out, in line 447, the figure “750” and inserting in place
202	202	105thereof the following figure:- 1,500.
203	203	106 SECTION 15. Paragraph (3) of subsection (o) of said section 6 of said chapter 62, as so
204	204	107appearing, is hereby amended by striking out, in line 732, the figure “6,000,000” and inserting in
205	205	108place thereof the following figure:- 8,000,000.
206	206	109 SECTION 16. Paragraph (5) of subsection (q) of said section 6 of said chapter 62, as so
207	207	110appearing, is hereby amended by striking out, in lines 896 to 898, inclusive, the words “The total
208	208	111amount of credits that may be authorized by DHCD in a calendar year pursuant to this subsection
209	209	112and section 38BB of chapter 63 shall not exceed $10,000,000 and” and inserting in place thereof
210	210	113the following 3 sentences:- EOHLC may authorize up to $30,000,000 in credits annually under
211	211	114this subsection and section 38BB of chapter 63. In addition, EOHLC may authorize annually (i)
212	212	115any portion of the annual cap on credits not authorized by EOHLC in the preceding calendar
213	213	116years under this subsection or said section 38BB of said chapter 63; and (ii) any credits under
214	214	117this subsection or said section 38BB of said chapter 63 returned to EOHLC by a certified
215	215	118housing development project. The total amount of credits authorized during a year. 7 of 21
216	216	119 SECTION 17. Said paragraph (5) of said subsection (q) of said section 6 of said chapter
217	217	12062, as so appearing, is hereby further amended by inserting, in line 900, after the words “chapter
218	218	12163;” the following word:- and.
219	219	122 SECTION 18. Said paragraph (5) of said subsection (q) of said section 6 of said chapter
220	220	12362, as so appearing, is hereby further amended by striking out, in lines 903 to 905, inclusive, the
221	221	124words “Any portion of the $10,000,000 annual cap not awarded by the DHCD in a calendar year
222	222	125shall not be applied to awards in a subsequent year.”
223	223	126 SECTION 19. Said section 6 of chapter 62 of the General Laws is hereby further
224	224	127amended by striking out subsections (x) and (y), and inserting in place thereof the following
225	225	128subsection:-
226	226	129 (x)(1) As used in this subsection, the following words shall have the following meanings:
227	227	130 “Cost-of-living adjustment”, for any calendar year, the percentage, if any, by which the
228	228	131CPI for the preceding calendar year exceeds the CPI for calendar year 2023.
229	229	132 “CPI”, the consumer price index for any calendar year as defined in section 1 of the
230	230	133Code.
231	231	134 “Eligible dependent”, an individual who is either (i) under the age of 13 and who
232	232	135qualifies for exemption as a dependent under section 151 of the Code; or (ii) not less than 65
233	233	136years of age and who qualifies as a dependent under section 152 of the Code; or (iii) disabled and
234	234	137who qualifies as a dependent under section 152 of the Code.
235	235	138 (2) A taxpayer who maintains a household that includes as a member an eligible
236	236	139dependent shall be allowed a credit in an amount equal to $600 for each such eligible dependent; 8 of 21
237	237	140provided, that the credit provided in this subsection shall be allowed only if the taxpayer and the
238	238	141taxpayer’s spouse file a joint return for the taxable year or if the taxpayer qualifies as a head of
239	239	142household under section 2(b) of the Code; and provided further, that for the purposes of this
240	240	143subsection, “maintains a household” shall have the same meaning as in section 21 of the Code.
241	241	144For each taxable year, the commissioner shall annually increase the amount of credit for each
242	242	145eligible dependent as provided by this subsection by an amount equal to such credit multiplied
243	243	146by the cost-of-living adjustment for the calendar year in which such taxable year begins. With
244	244	147respect to a taxpayer who is a non-resident for part of the taxable year, the credit shall be further
245	245	148limited to the amount of allowable credit multiplied by a fraction, the numerator of which shall
246	246	149be the number of days in the taxable year the person resided in the commonwealth and the
247	247	150denominator of which shall be the number of days in the taxable year. A person who is a non-
248	248	151resident for the entire taxable year shall not be allowed the credit. If the amount of the credit
249	249	152allowed under this subsection exceeds the taxpayer’s tax liability, the commissioner shall treat
250	250	153the excess as an overpayment and shall pay the taxpayer the entire amount of the excess without
251	251	154interest.
252	252	155 SECTION 20. Paragraph (1) of subsection (v) of said section 6 of said chapter 62, as so
253	253	156appearing, is hereby amended by adding, in line 1158, after the words “NAICS code 31-33”, the
254	254	157following words:- and other expansion industries the secretary of labor and workforce
255	255	158development identifies as critical to a regional labor market economy.
256	256	159 SECTION 21. Said section 6 of said chapter 62 of the General Laws, as amended by
257	257	160section 103 of chapter 268 of the acts of 2022, is hereby further amended by adding the
258	258	161following subsection:- 9 of 21
259	259	162 (dd)(1) As used in this subsection, the following words shall, unless the context clearly
260	260	163requires otherwise, have the following meanings:
261	261	164 “Advertising and public relations expenditure”, a cost incurred within the commonwealth
262	262	165by an eligible theater production for goods or services related to the marketing, public relations,
263	263	166creation and placement of print, electronic, television, billboards or other forms of advertising to
264	264	167promote the eligible theater production.
265	265	168 “Eligible theater production”, a live stage musical, dance or theatrical production or tour
266	266	169being presented in a qualified production facility that is either: (i) a pre-Broadway production;
267	267	170(ii) a pre-off Broadway production; (iii) a national tour launch; or (iv) a regional professional
268	268	171theater production.
269	269	172 “Eligible theater production certificate”, a certificate issued by the office, in consultation
270	270	173with the commissioner, certifying that a production is an eligible theater production that meets
271	271	174the rules or regulations of the office, and that it has been awarded a tax credit in a specified
272	272	175amount, pursuant to section 3M of chapter 23A.
273	273	176 “National tour launch”, a live stage production that, in its original or adaptive version, is
274	274	177performed in a qualified production facility and opens its national tour in the commonwealth.
275	275	178 “Office”, the Massachusetts office of business development established in section 1 of
276	276	179chapter 23A, or any constituent office thereof.
277	277	180 “Payroll”, all salaries, wages, fees and other compensation from sources within the
278	278	181commonwealth, including, but not limited to, taxes, benefits and any other consideration incurred
279	279	182or paid to talent and non-talent employees of the applicant for services rendered within the 10 of 21
280	280	183commonwealth to and on behalf of an eligible theater production; provided, that the payroll
281	281	184expenditure shall be incurred or paid by the applicant for services related to any portion of an
282	282	185eligible theater production from its pre-production stages, including, but not limited to: (i) the
283	283	186writing of the script; (ii) casting; (iii) hiring of service providers; (iv) purchases from vendors;
284	284	187(v) marketing; (vi) advertising; (vii) public relations; (viii) load in; (ix) rehearsals; (x)
285	285	188performances; (xi) other eligible theater production related activities; and (xii) load out; and
286	286	189provided further, that the payroll expenditure shall be directly attributable to the eligible theater
287	287	190production and shall be limited to the first $100,000 of wages incurred or paid to each employee
288	288	191of an eligible theater production in each tax year.
289	289	192 “Pre-Broadway production”, a live stage production that, in its original or adaptive
290	290	193version, is performed in a qualified production facility having a presentation scheduled for the
291	291	194city of New York’s Broadway theater district within 24 months after its presentation in the
292	292	195commonwealth.
293	293	196 “Pre-off Broadway production”, a live stage production that, in its original or adaptive
294	294	197version, is performed in a qualified production facility having a presentation scheduled for city
295	295	198of New York’s off-Broadway theater district within 24 months after its presentation in the
296	296	199commonwealth.
297	297	200 “Production and performance expenditures”, a contemporaneous exchange of cash or
298	298	201cash equivalent for goods or services related to development, production, performance or
299	299	202operating expenditures incurred in the commonwealth for a qualified theater production,
300	300	203including, but not limited to, expenditures for design, construction and operation, including sets,
301	301	204special and visual effects, costumes, wardrobes, make-up, accessories, costs associated with 11 of 21
302	302	205sound, lighting, staging, advertising and public relations expenditures, facility expenses, rentals,
303	303	206per diems, accommodations and other related costs.
304	304	207 “Qualified production facility”, a facility located in the commonwealth in which live
305	305	208theater productions are, or are intended to be, exclusively presented that contains at least 1 stage,
306	306	209a seating capacity of not less than 175 seats, dressing rooms, storage areas and other ancillary
307	307	210amenities necessary for the eligible theater production.
308	308	211 "Regional professional theater production”, a live stage production that is performed in a
309	309	212qualified production facility with a professional cast and crew.
310	310	213 “Transportation expenditures”, expenses incurred in Massachusetts for the packaging,
311	311	214crating and transportation both to the commonwealth for use in a qualified theater production of
312	312	215sets, costumes or other tangible property constructed or manufactured out of state, or from the
313	313	216commonwealth after use in a qualified theater production of sets, costumes or other tangible
314	314	217property constructed or manufactured in the commonwealth and the transportation of the cast
315	315	218and crew to and from the commonwealth; provided, that “transportation expenditures” shall
316	316	219include any portion performed in Massachusetts of the packaging, crating and transporting of
317	317	220property and equipment used for special and visual effects, sound, lighting and staging,
318	318	221costumes, wardrobes, make-up and related accessories and materials and any other performance
319	319	222or production-related property and equipment.
320	320	223 (2) Any taxpayer that has been awarded an eligible theater production certificate and has
321	321	224completed a cost accounting pursuant to subsection (c) of section 3M of chapter 23A shall be
322	322	225allowed a tax credit against taxes imposed by this chapter. The credit shall not exceed
323	323	226$5,000,000 and shall be limited to (i) 35 per cent of in-state payroll costs; (ii) 25 per cent of 12 of 21
324	324	227production and performance expenditures; and (iii) 25 per cent of transportation expenditures.
325	325	228Additionally, the credit shall not exceed the amount of credit specified in the eligible theater
326	326	229production certificate.
327	327	230 (3) The tax credit shall be allowed against the tax for the taxable period in which the
328	328	231credit is issued and any amount of the tax credit that exceeds the tax due for a taxable year may
329	329	232be carried forward for not more than 5 succeeding tax years.
330	330	233 (4) If a taxpayer has not claimed the tax credits in whole or part, a taxpayer eligible for
331	331	234the tax credits may assign, transfer or convey the tax credits, in whole or in part, by sale or
332	332	235otherwise to any individual or entity and such assignee of the tax credits that have not claimed
333	333	236the tax credits, in whole or in part, may assign, transfer or convey the tax credits, in whole or in
334	334	237part, by sale or otherwise to any individual or entity. The assignee of the tax credits may use
335	335	238acquired credits to offset up to 100 per cent of the tax liabilities otherwise imposed pursuant to
336	336	239this chapter. The assignee may apply the tax credits against taxes imposed on the assignee for not
337	337	240more than 5 succeeding tax years from the date an eligible theater production certificate is first
338	338	241issued by the office. The assignor shall perfect the transfer by notifying the commissioner, in
339	339	242writing, within 30 calendar days following the effective date of the transfer and shall provide any
340	340	243information as may be required by the commissioner to administer and carry out this subsection.
341	341	244 SECTION 22. Subsection (a) of section 38Q of chapter 63 of the General Laws, as
342	342	245appearing in the 2020 Official Edition appearing, is hereby amended by striking out, in line 3,
343	343	246the figure “2023” and inserting in place thereof the following figure:- 2028. 13 of 21
344	344	247 SECTION 23. Said subsection (a) of said section 38Q of said chapter 63, as so appearing,
345	345	248is hereby further amended by striking out, in line 9, the figure “2024” and inserting in place
346	346	249thereof the following figure:- 2029.
347	347	250 SECTION 24. Subsection (d) of said section 38Q of said chapter 63, as so appearing, is
348	348	251hereby amended by adding the following sentence:- For the purpose of the Brownfields
349	349	252Redevelopment Fund, state financial assistance shall mean the amount of any grant or principal
350	350	253amount of any loan, but shall not include any loan principal repaid as of the date the credit
351	351	254application is filed with the commissioner. Net response and removal costs shall not include any
352	352	255reimbursement that is received, or will be received, by the applicant, or any amounts paid on
353	353	256behalf of the applicant from any source for these costs.
354	354	257 SECTION 25. Subsection (c) of section 38Z of said chapter 63, as so appearing, is hereby
355	355	258amended by striking out, in line 28, the figure “6,000,000” and inserting in place thereof the
356	356	259following figure:- 8,000,000.
357	357	260 SECTION 26. Subdivision (5) of section 38BB of said chapter 63, as so appearing, is
358	358	261hereby amended by striking out, in lines 42 to 44, inclusive, the words “The total amount of
359	359	262credits that may be authorized by DHCD in a calendar year under this section and subsection (q)
360	360	263of section (6) of chapter 62 shall not exceed $10,000,000 and” and inserting in place thereof the
361	361	264following 3 sentences:- EOHLC may authorize up to $30,000,000 in credits annually under this
362	362	265section and subsection (q) of section (6) of chapter 62. In addition, EOHLC may authorize
363	363	266annually (i) any portion of the annual cap on credits not authorized by EOHLC in the preceding
364	364	267calendar years under this section or said subsection (q) of said section (6) of said chapter 62; and
365	365	268(ii) any credits under this section or said subsection (q) of said section (6) of said chapter 62 14 of 21
366	366	269returned to EOHLC by a certified housing development project. The total amount of credits
367	367	270authorized during a year.
368	368	271 SECTION 27. Said subdivision (5) of said section 38BB of said chapter 63, as so
369	369	272appearing, is hereby further amended by inserting, in line 46, after the words “chapter 62;” the
370	370	273following word:- and.
371	371	274 SECTION 28. Said subdivision (5) of said section 38BB of said chapter 63, as so
372	372	275appearing, is hereby further amended by striking out, in lines 50 to 52, inclusive, the words “Any
373	373	276portion of the $10,000,000 annual cap not awarded by DHCD in a calendar year shall not be
374	374	277applied to awards in a subsequent year.”
375	375	278 SECTION 29. Subsection (a) of section 38HH of said chapter 63, as so appearing, is
376	376	279hereby amended by adding, in line 18, after the words “NAICS code 31-33”, the following
377	377	280words:- and other expansion industries the secretary of labor and workforce development
378	378	281identifies as critical to a regional labor market economy.
379	379	282 SECTION 30. Said chapter 63 is hereby further amended by inserting after section
380	380	28338MM, inserted by section 106 of chapter 268 of the acts of 2022, the following section:-
381	381	284 Section 38NN. (a) As used in this section, the following words shall, unless the context
382	382	285clearly requires otherwise, have the following meanings:
383	383	286 “Advertising and public relations expenditure”, a cost incurred within the commonwealth
384	384	287by an eligible theater production for goods or services related to the marketing, public relations,
385	385	288creation and placement of print, electronic, television, billboards or other forms of advertising to
386	386	289promote the eligible theater production. 15 of 21
387	387	290 “Eligible theater production”, a live stage musical, dance or theatrical production or tour
388	388	291being presented in a qualified production facility that is either: (a) a pre-Broadway production;
389	389	292(b) a pre-off Broadway production; (c) a national tour launch; or (iv) a regional professional
390	390	293theater production.
391	391	294 “Eligible theater production certificate”, a certificate issued by the office, in consultation
392	392	295with the commissioner, certifying that a production is an eligible theater production that meets
393	393	296the rules or regulations of the office, and that it has been awarded a tax credit in a specified
394	394	297amount, pursuant to section 3M of chapter 23A.
395	395	298 “National tour launch”, a live stage production that, in its original or adaptive version, is
396	396	299performed in a qualified production facility and opens its national tour in the commonwealth.
397	397	300 “Office”, the Massachusetts office of business development established in section 1 of
398	398	301chapter 23A, or any constituent office thereof.
399	399	302 “Payroll”, all salaries, wages, fees and other compensation from sources within the
400	400	303commonwealth, including, but not limited to, taxes, benefits and any other consideration incurred
401	401	304or paid to talent and non-talent employees of the applicant for services rendered within the
402	402	305commonwealth to and on behalf of an eligible theater production; provided, that the payroll
403	403	306expenditure shall be incurred or paid by the applicant for services related to any portion of an
404	404	307eligible theater production from its pre-production stages, including, but not limited to: (a) the
405	405	308writing of the script, (b) casting, (c) hiring of service providers, (d) purchases from vendors, (e)
406	406	309marketing, (f) advertising, (g) public relations, (h) load in, (i) rehearsals, (j) performances, (k)
407	407	310other eligible theater production related activities, and (l) load out; and provided further, that the
408	408	311payroll expenditure shall be directly attributable to the eligible theater production and shall be 16 of 21
409	409	312limited to the first $100,000 of wages incurred or paid to each employee of an eligible theater
410	410	313production in each tax year.
411	411	314 “Pre-Broadway production”, a live stage production that, in its original or adaptive
412	412	315version, is performed in a qualified production facility having a presentation scheduled for city
413	413	316of New York’s Broadway theater district within 24 months after its presentation in the
414	414	317commonwealth.
415	415	318 “Pre-off Broadway production”, a live stage production that, in its original or adaptive
416	416	319version, is performed in a qualified production facility having a presentation scheduled for the
417	417	320city of New York’s off-Broadway theater district within 24 months after its presentation in the
418	418	321commonwealth.
419	419	322 “Production and performance expenditures”, a contemporaneous exchange of cash or
420	420	323cash equivalent for goods or services related to development, production, performance or
421	421	324operating expenditures incurred in the commonwealth for a qualified theater production,
422	422	325including, but not limited to, expenditures for design, construction and operation, including sets,
423	423	326special and visual effects, costumes, wardrobes, make-up, accessories, costs associated with
424	424	327sound, lighting, staging, advertising and public relations expenditures, facility expenses, rentals,
425	425	328per diems, accommodations and other related costs.
426	426	329 “Qualified production facility”, a facility located in the commonwealth in which live
427	427	330theater productions are, or are intended to be, exclusively presented that contains at least 1 stage,
428	428	331a seating capacity of not less than 175 seats, dressing rooms, storage areas and other ancillary
429	429	332amenities necessary for the eligible theater production. 17 of 21
430	430	333 "Regional professional theater production”, a live stage production that is performed in a
431	431	334qualified production facility with a professional cast and crew.
432	432	335 “Transportation expenditures”, expenses incurred in Massachusetts for the packaging,
433	433	336crating and transportation both to the commonwealth for use in a qualified theater production of
434	434	337sets, costumes or other tangible property constructed or manufactured out of state, or from the
435	435	338commonwealth after use in a qualified theater production of sets, costumes or other tangible
436	436	339property constructed or manufactured in the commonwealth and the transportation of the cast
437	437	340and crew to and from the commonwealth; provided, that “transportation expenditures” shall
438	438	341include any portion performed in Massachusetts of the packaging, crating and transporting of
439	439	342property and equipment used for special and visual effects, sound, lighting and staging,
440	440	343costumes, wardrobes, make-up and related accessories and materials and any other performance
441	441	344or production-related property and equipment.
442	442	345 (b) Any taxpayer that has been awarded an eligible theater production certificate and has
443	443	346completed a cost accounting pursuant to subsection (c) of section 3M of chapter 23A shall be
444	444	347allowed a tax credit against taxes imposed by this chapter. The credit shall not exceed
445	445	348$5,000,000 and shall be limited to (i) 35 per cent of the total in-state payroll costs; (ii) 25 per
446	446	349cent of the production and performance expenditures; and (iii) 25 per cent of transportation
447	447	350expenditures. Additionally, the credit shall not exceed the amount of credit specified in the
448	448	351eligible theater production certificate.
449	449	352 (c) The tax credit shall be allowed against the tax for the taxable period in which the
450	450	353credit is issued and any amount of the tax credit that exceeds the tax due for a taxable year may
451	451	354be carried forward for not more than 5 succeeding tax years. 18 of 21
452	452	355 (d) If a taxpayer has not claimed the tax credits in whole or part, a taxpayer eligible for
453	453	356the tax credits may assign, transfer or convey the tax credits, in whole or in part, by sale or
454	454	357otherwise to any individual or entity and such assignee of the tax credits that have not claimed
455	455	358the tax credits, in whole or in part, may assign, transfer or convey the tax credits, in whole or in
456	456	359part, by sale or otherwise to any individual or entity. The assignee of the tax credits may use
457	457	360acquired credits to offset up to 100 per cent of the tax liabilities otherwise imposed pursuant to
458	458	361this chapter. The assignee may apply the tax credits against taxes imposed on the assignee for not
459	459	362more than 5 succeeding tax years from the date an eligible theater production certificate is first
460	460	363issued by the office. The assignor shall perfect the transfer by notifying the commissioner, in
461	461	364writing, within 30 calendar days following the effective date of the transfer and shall provide any
462	462	365information as may be required by the commissioner to administer and carry out this section.
463	463	366 (e) Credits allowed to corporations that are included in a combined group within the
464	464	367meaning of section 32B may be shared with other corporations within such group that are also
465	465	368doing business in Massachusetts, to the extent those corporations are engaged in a unitary
466	466	369business.
467	467	370 (f) Credits allowed to a company that is a S corporation, as defined in section 1361 of the
468	468	371Code, partnership or a limited liability company that is taxed as a partnership shall be passed
469	469	372through respectively to persons designated as partners, members or owners of such companies on
470	470	373a pro rata basis or pursuant to an executed agreement among such persons designated as S
471	471	374corporation shareholders, partners or members documenting an alternate distribution method
472	472	375without regard to their sharing of other tax or economic attributes of such entity. 19 of 21
473	473	376 (g) The commissioner shall promulgate such rules and regulations necessary for the
474	474	377administration of this section.
475	475	378 SECTION 31. Section 2A of chapter 65C of the General Laws, as appearing in the 2020
476	476	379Official Edition, is hereby amended by striking out subsection (a) and inserting in place the
477	477	380following subsection:-
478	478	381 (a) A tax is hereby imposed upon the transfer of the estate of each person dying on or
479	479	382after January 1, 1997 who, at the time of death, was a resident of the commonwealth. The
480	480	383amount of the tax shall be equal to the credit for state death taxes that would have been allowable
481	481	384to a decedent’s estate as computed under Code section 2011, as in effect on December 31, 2000,
482	482	385hereinafter referred to as the “credit”. If the federal gross estate of a person includes real or
483	483	386tangible personal property located outside of the commonwealth at the time of death, the tax
484	484	387shall be reduced by an amount equal to the proportion of such allowable credit as the value of
485	485	388such real or tangible personal property located outside of the commonwealth bears to the value
486	486	389of the entire federal gross estate wherever situated, as determined under Code section 2011, as in
487	487	390effect on December 31, 2000.
488	488	391 SECTION 32. Said section 2A of said chapter 65C, as so appearing, is hereby further
489	489	392amended by adding the following 2 subsections:-
490	490	393 (f) For the estates of decedents dying on or after July 1, 2023, a credit shall be allowed
491	491	394against the tax imposed by subsections (a) and (b) equal to the amount of such tax; provided,
492	492	395however, that the credit shall not exceed $182,000. 20 of 21
493	493	396 (g) The estates of decedents dying on or after July 1, 2023 shall not be required to pay
494	494	397any tax under subsections (a) and (b) if the value of the federal taxable estate is not more than
495	495	398$3,000,000.
496	496	399 SECTION 33. Section 21 of chapter 138 of the General Laws, as so appearing, is hereby
497	497	400amended by striking out, in lines 20 and 21, the words “six per cent of alcohol by weight” and
498	498	401inserting in place thereof the following words:- 8½ per cent of alcohol by volume.; and
499	499	402 SECTION 34. Said section 21 of said chapter 138, as so appearing, is hereby further
500	500	403amended by striking out, in line 25, the word “six” and inserting in place thereof the following
501	501	404figure:- 8 ½
502	502	405 SECTION 35. Sections 46, 48, 61, 63 and 124A of chapter 287 of the acts of 2014, as
503	503	406most recently amended by section 26 of chapter 99 of the acts of 2018, are hereby repealed.
504	504	407 SECTION 36. Notwithstanding any general or special law to the contrary, in calendar
505	505	408year 2023, the executive office of housing and livable communities may authorize up to
506	506	409$50,000,000 in credits under subsection (q) of section (6) of chapter 62 of the General Laws and
507	507	410section 38BB of chapter 63 of the General Laws. Any portion of this amount that is not
508	508	411authorized in calendar year 2023 shall be added to the amount the executive office of housing
509	509	412and livable communities may authorize in subsequent years under said subsection (q) of said
510	510	413section (6) of said chapter 62 and said section 38BB of said chapter 63.
511	511	414 SECTION 37. Sections 31 and 32 shall take effect for the estates of decedents dying on
512	512	415or after January 1, 2023. 21 of 21
513	513	416 SECTION 38. Sections 1, 21, and 30 shall apply to tax years beginning on or after
514	514	417January 1, 2024.
515	515	418 SECTION 39. Section 1 is hereby repealed.
516	516	419 SECTION 40. Sections 21 and 30 are hereby repealed.
517	517	420 SECTION 41. Section 39 shall take effect on January 1, 2029.
518	518	421 SECTION 42. Section 40 shall apply to tax years beginning on or after January 1, 2035.
519	519	422 SECTION 43. Except as otherwise specified, this act shall take effect for taxable years
520	520	423beginning on or after January 1, 2023.