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SENATE DOCKET, NO. 423 FILED ON: 1/14/2023
SENATE . . . . . . . . . . . . . . No. 1941
The Commonwealth of Massachusetts
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PRESENTED BY:
Bruce E. Tarr
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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 allowing for the deduction of business interest.
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PETITION OF:
NAME:DISTRICT/ADDRESS :Bruce E. TarrFirst Essex and Middlesex 1 of 2
SENATE DOCKET, NO. 423 FILED ON: 1/14/2023
SENATE . . . . . . . . . . . . . . No. 1941
By Mr. Tarr, a petition (accompanied by bill, Senate, No. 1941) of Bruce E. Tarr for legislation
to allow for the deduction of business interest. Revenue.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE SENATE, NO. 1998 OF 2021-2022.]
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 allowing for the deduction of business interest.
Whereas, The deferred operation of this act would tend to defeat its purpose, which is to
decouple from certain provisions of the federal Tax Cuts and Jobs Act that took effect for tax
years beginning after December 31, 2017, 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:
1 SECTION 1. Section 1 of chapter 62 of the General Laws is hereby amended by striking
2out subsection (c) and inserting in place thereof the following subsection: -
3 (c) “Code”, the Internal Revenue Code of the United States, as amended on January 1,
42005 and in effect for the taxable year; but Code shall mean the Code as amended and in effect
5for the taxable year for sections 62(a)(1), 72, 105, 106, 139C, 223, 274(m), 274(n), 401 through
6420, inclusive, 457, 529, 529A, 530, 951, 951A, 959, 961, 3401 and 3405 but excluding sections
7402A and 408(q), and provided further that for purposes of determining the amount of business 2 of 2
8interest deductible under this chapter, the provisions of section 163(j) of the Code shall not
9apply.
10 SECTION 2. Section 1 of chapter 63 of the General Laws is hereby amended by striking
11out the definition of “Code” therein and inserting in place thereof the following definition: -
12 “Code”, the Internal Revenue Code of the United States, as amended and in effect for the
13taxable year, unless otherwise provided; for sections 163(j), 381(c)(20), 382(d)(3) and 382(k)(1),
14Code shall mean the Code as amended and in effect for tax years beginning before January 1,
152018.
16 SECTION 3. Section 30 of said chapter 63 is hereby amended by striking out the first
17sentence of paragraph 4 and inserting in place thereof the following sentence: -
18 “Net income”, gross income less the deductions, but not credits, allowable under the
19provisions of the Federal Internal Revenue Code, as amended and in effect for the taxable year;
20provided, however, that for sections 163(j), 381(c)(20), 382(d)(3) and 382(k)(1), Code shall
21mean the Code as amended and in effect for tax years beginning before January 1, 2018, and
22provided further that any deduction otherwise allowable which is allocable, in whole or in part,
23to one or more classes of income not included in a corporation’s taxable net income, as
24determined under subsection (a) of section 38, shall not be allowed.
25 SECTION 4. This act shall be effective for taxable years beginning after December 31,
262017.