Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3155 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 1448 FILED ON: 1/15/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 3155
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Hannah Kane
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act allowing for the deduction of business interest.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Hannah Kane11th Worcester1/15/2025 1 of 3
16	16	HOUSE DOCKET, NO. 1448 FILED ON: 1/15/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 3155
18	18	By Representative Kane of Shrewsbury, a petition (accompanied by bill, House, No. 3155) of
19	19	Hannah Kane relative to the income tax deduction of business interest. Revenue.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE HOUSE, NO. 2853 OF 2023-2024.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Fourth General Court
25	25	(2025-2026)
26	26	_______________
27	27	An Act allowing for the deduction of business interest.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Section 1 of chapter 62 of the General Laws, as appearing in the 2022
31	31	2Official Edition, is hereby amended by striking out subsection (c) and inserting in place thereof
32	32	3the following subsection: -
33	33	4 (c) “Code”, the Internal Revenue Code of the United States, as amended on January 1,
34	34	52022 and in effect for the taxable year; but Code shall mean the Code as amended and in effect
35	35	6for the taxable year for sections 62(a)(1), 72, 105, 106, 108(f)(5), 139C, 223, 274(m), 274(n),
36	36	7401 through 420, inclusive, 457, 529, 529A, 530, 951, 951A, 959, 961, 3401 and 3405 but
37	37	8excluding sections 402A and 408(q), and provided further that for purposes of determining the
38	38	9amount of business interest deductible under this chapter, the provisions of section 163(j) of the
39	39	10Code shall not apply. 2 of 3
40	40	11 SECTION 2. Section 1 of chapter 63 of the General Laws, as appearing in the 2022
41	41	12Official Edition, is hereby amended by striking out the definition of “Code” therein and inserting
42	42	13in place thereof the following definition: -
43	43	14 “Code”, the Internal Revenue Code of the United States, as amended and in effect for the
44	44	15taxable year, unless otherwise provided; for section 163(j), Code shall mean the Code as
45	45	16amended and in effect for tax years beginning before January 1, 2018.
46	46	17 SECTION 3. Section 30 of said chapter 63, as so appearing, is hereby amended by
47	47	18striking out the first sentence of paragraph 4 and inserting in place thereof the following
48	48	19sentence: -
49	49	20 “Net income”, gross income less the deductions, but not credits, allowable under the
50	50	21provisions of the Federal Internal Revenue Code, as amended and in effect for the taxable year;
51	51	22provided, however, that for section 163(j), Code shall mean the Code as amended and in effect
52	52	23for tax years beginning before January 1, 2018, and provided further that any deduction
53	53	24otherwise allowable which is allocable, in whole or in part, to one or more classes of income not
54	54	25included in a corporation’s taxable net income, as determined under subsection (a) of section 38,
55	55	26shall not be allowed.
56	56	27 SECTION 4. Section 30 of said chapter 63, as so appearing, is hereby amended by,
57	57	28striking the following words, “; and (viii) the deductions allowed by sections 245A, 250 and
58	58	29965(c) of the Code.”, and inserting in place thereof the following: -
59	59	30 (viii) the deductions allowed by sections 245A, 250 and 965(c) of the Code; and 3 of 3
60	60	31 (ix) For tax years commencing on or after January 1, 2025, no deduction shall be allowed
61	61	32resulting from a carryforward of disallowed business interest expense under section 163(j) of the
62	62	33Code. The amount of any carryforward of disallowed business interest expense under section
63	63	34163(j) of the Code as of the tax year ending before January 1, 2025, shall be allowed as a
64	64	35deduction in 3 equal parts over 3 consecutive years, beginning with the first tax year
65	65	36commencing on or after January 1, 2025.
66	66	37 SECTION 5. This act shall take effect for taxable years beginning on or after January 1,
67	67	382025.