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SENATE DOCKET, NO. 2356 FILED ON: 1/20/2023
SENATE . . . . . . . . . . . . . . No. 1826
The Commonwealth of Massachusetts
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PRESENTED BY:
Barry R. Finegold
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to economic development initiatives.
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PETITION OF:
NAME:DISTRICT/ADDRESS :Barry R. FinegoldSecond Essex and Middlesex 1 of 3
SENATE DOCKET, NO. 2356 FILED ON: 1/20/2023
SENATE . . . . . . . . . . . . . . No. 1826
By Mr. Finegold, a petition (accompanied by bill, Senate, No. 1826) of Barry R. Finegold for
legislation relative to economic development initiatives. Revenue.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act relative to economic development initiatives.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Paragraph (1) of subsection (a) of section 4 of chapter 62 of the General
2Laws, as appearing in the 2020 Official Edition, is hereby amended by inserting, in line 5, after
3the word “cent”, the following words:-
4 ; provided, however, that any gain from the sale or exchange of capital assets held for 1
5year or less shall be taxed at the rate of 5 per cent.
6 SECTION 2. Section 38M of chapter 63 of the General Laws, as so appearing, is hereby
7amended by striking out subsection (e) and inserting in place thereof the following:-
8 (e)(1) If a corporation is not an eligible semiconductor company, the credit allowed under
9this section shall be limited to 100 per cent of a corporation's first $25,000 of excise, as
10determined before the allowance of any credits, plus 75 per cent of the corporation's excise, as so
11determined in excess of $25,000. 2 of 3
12 (2) If a corporation is an eligible semiconductor company, the credit allowed under this
13section shall be limited to 100 per cent of a corporation's first $25,000 of excise, as determined
14before the allowance of any credits, plus 95 per cent of the corporation's excise, as so determined
15in excess of $25,000.
16 (3) The commissioner shall promulgate regulations similar to those authorized under
17subsection (c)(2)(B) of section 38 of said Code for the purposes of apportioning the $25,000
18amount among members of a controlled group. Nothing in this section shall alter section 32C as
19it affects other credits under this chapter.
20 SECTION 3. Said section 38M of said chapter 63, as so appearing, is hereby further
21amended in paragraph (1) of subsection (k) by inserting before the definition of “life sciences”
22the following definition:-
23 “Eligible semiconductor company”, a corporation: (i) the primary business activity of
24which involves conducting research on, developing or manufacturing semiconductor devices,
25microprocessors, memory chips or other similar products or the production equipment that is
26used to manufacture such devices, microprocessors, chips or products; and (ii) that establishes a
27new physical facility in the commonwealth or expands an existing physical facility in the
28commonwealth not later than 3 years after the effective date of this section; provided, however,
29that such establishment or expansion creates 15 net new jobs in the commonwealth and the
30company commits to retaining such jobs through December 31, 2029 at the earliest; and
31provided further, that the physical facility is primarily related to researching, developing or
32manufacturing semiconductor devices, microprocessors, memory chips or other similar products 3 of 3
33or the production equipment that is used to manufacture such devices, microprocessors, chips or
34products.
35 SECTION 4. Not later than eight months after the effective date of this act, the
36commissioner of revenue shall issue new regulations to carry out the purposes of section 38M of
37the General Laws.