This Technical Information Release (TIR) explains provisions in the Fiscal Year 2015 Budget (the Act)[1] relating to the personal income tax, G.L. c. 62; the corporate excise, G.L. c. 63; tax administration, G.L. c. 62C; the small claims procedure before the Appellate Tax Board, G.L. c. 58A; the tax on alcoholic liquors, G.L. c. 138; and the motor vehicles excise, G.L. c. 60A.

The tax changes discussed in this TIR include:

  • extension of the Historic Rehabilitation Tax Credit for five years,
  • deferral of implementation of the corporate excise FAS 109 deduction,
  • clarification of the method for calculating the taxable net worth of an intangible property corporation,
  • a technical change to the calculation of the Massachusetts adjusted basis of property,
  • technical and conforming changes to the tax administration provisions applicable to corporations subject to combined reporting,
  • revision of requirements to qualify as a “direct wine shipper” allowing certain larger wineries to ship directly to customers in Massachusetts,
  • expansion of the exemption from the motor vehicles excise for certain disabled veterans and members of the military, and
  • expansion of the cases eligible for the expedited small claims appeal procedure before the Appellate Tax Board.

I.  Extension of the Massachusetts Historic Rehabilitation Tax Credit; Personal Income Tax and Corporate Excise

The Massachusetts Historical Commission administers, allocates and determines eligibility for the Massachusetts Historic Rehabilitation Tax Credit through an application process and criteria set forth in the  Massachusetts Historical Commission Tax Credit regulation, 830 CMR 63.38R.1.

Before the extension provided by the Act, under the personal income tax and corporate excise, the Massachusetts Historical Commission was authorized annually, for a 12-year period beginning January 1, 2006 until December 31, 2017, to certify an amount not exceeding $50 million per year for purposes of the Massachusetts Historic Rehabilitation Tax Credit.

For personal income tax and corporate excise purposes, the Act extends the Massachusetts Historic Rehabilitation Tax Credit, including the $50 million annual limit, for an additional five years to December 31, 2022.[2]"

II.  FAS 109 Deduction; Corporate Excise

A “FAS 109”[3] deduction was previously approved for certain publicly held companies as part of a Massachusetts tax law change that, among other things, lowered the corporate tax rate in stages and adopted combined reporting for tax years beginning on or after January 1, 2009. In general, if the enactment of the combined reporting requirement for a unitary business resulted in an increase in the net deferred tax liability of certain combined groups, such groups became eligible to claim a FAS 109 deduction.[4] 

The Act defers for an additional year the implementation of the FAS 109 deduction. Under prior law, if applicable, the FAS 109 deduction was to be prorated over the 7-year period beginning with the combined group’s taxable year that begins in 2015. Under the Act, the first year of the 7-year period to claim the FAS 109 deduction is the combined group’s taxable year that begins in 2016.[5]

III.  Taxable Net Worth of an Intangible Property Corporation; Corporate Excise

The corporate excise tax imposed on a business corporation is the greater of the amounts described in G.L. c. 63, sec. 39(a) or (b):

(a)    An amount equal to the sum of:

(1)    $2.60 per $1,000 upon the value of (i) its tangible property as determined to be taxable under § 30(7) if a tangible property corporation; or (ii) its net worth as determined to be taxable under § 30(8) - (9) if an intangible property corporation; and

(2)    8.0 percent of its net income determined to be taxable under chapter 63.

       (b) $456

For purposes of sec. 39, an intangible property corporation is a corporation whose tangible/intangible property ratio as described in G.L. c. 63, sec. 30(11) has a value of less than 10 percent. The net worth of an intangible property corporation taxable under sec. 39, other than a qualified real estate investment trust (REIT), is defined by G.L. c. 63, sec. 30(8); the net worth of an intangible property corporation that is a qualified REIT is defined by G.L. c. 63, sec. 30(9).

A.    Business Corporations (other than qualified REITs) that are Intangible Property Corporations.

Before the Act, sec. 30(8) allowed an intangible property corporation to deduct the book value of the taxpayer’s investment in subsidiary corporations which represent 80 percent or more of the voting stock of said corporations when determining its net worth measure excise:

The net worth of a business corporation taxable under section 39 shall be such portion of the book value of its total assets on the last day of the taxable year, less the sum of (1) its liabilities on said date, (2) the book value of its tangible property situated in the commonwealth on said date and subject to local taxation, less the interest of any mortgagee therein, and (3) the book value on said date of its investment in subsidiary corporations which represent eighty per cent or more of the voting stock of said corporations, as shall be found by multiplying said amount by such corporation’s income apportionment percentage, as determined under the provisions of section thirty-eight. . . .

The Act amended the net worth calculation in sec. 30(8) to broaden the provision that allows the subtraction of the book value of a subsidiary business corporation:

The net worth of a business corporation taxable under section 39 shall be calculated as follows:  (a) the book value of its total assets on the last day of the taxable year shall be reduced by the sum of (1) its liabilities on said date, (2) the book value of its tangible property situated in the commonwealth on said date and subject to local taxation, less the interest of any mortgagee therein, and (3) the book value on said date of its investment in subsidiary business corporations which represent 80 per cent or more of the voting stock of said subsidiary business corporations or, in the case of a subsidiary business corporation which does not have voting stock, the book value of its investment in such business corporation which represents 80 per cent or more ownership interest; (b) the amount determined in (a) shall be multiplied by such corporation’s income apportionment percentage, as determined under section 38. [6]
[The main substance of the statutory change is shown in bold.]

The amendment allows an intangible property corporation to subtract the book value of a business corporation that does not have voting stock, where the parent corporation has an 80 percent or more ownership interest. In effect, this allows for the deduction of an ownership interest in a pass-through entity, such as an LLC or a partnership, that is treated for tax purposes as a business corporation under G.L. c. 63, § 30, where the 80 percent ownership threshold is met.

B.    Qualified Real Estate Investment Trusts (REITs) that are Intangible Property Corporations.

Section 30(9) applies to a corporation that is a qualified REIT; the net worth of a qualified REIT that is allocable to Massachusetts under sec. 30(9) is based upon a different formula than the formula that applies under sec. 30(8) to non-REIT business corporations. Before the Act, sec. 30(9) provided the following formula:

Notwithstanding paragraph 8, the net worth of a domestic business corporation taxable under clause (1) of subsection (a) of section 32 or of a foreign corporation taxable under clause (1) of subsection (a) of section 39 that is a qualified real estate investment trust shall be such portion of the book value of its total assets less its liabilities on the last day of the taxable year as the book value of its tangible assets situated within the commonwealth on said date and not subject to local taxation plus the amount of its intangible assets on said date allocable to this commonwealth, as hereinafter determined, bear to the book value of its total assets on said date. The intangible assets allocable to this commonwealth shall be such portion of the book value of its total intangible assets on the last day of the taxable year, less the book value on said date of its investment in and advances to subsidiary corporations which represent 80 per cent or more of the voting stock of said corporations, as shall be found by multiplying said amount by such corporation’s income apportionment percentage, as determined under section 38. . . .

The Act amended the net worth calculation in sec. 30(9) to broaden the provision that allows the subtraction of the book value of a subsidiary business corporation:

Notwithstanding paragraph 8, the net worth of a business corporation taxable under clause (1) of subsection (a) of section 39 that is a qualified real estate investment trust shall be such portion of the book value of its total assets less its liabilities on the last day of the taxable year as the book value of its tangible assets situated in the commonwealth on said date and not subject to local taxation plus the amount of its intangible assets on said date allocable to the commonwealth, as hereinafter determined, bear to the book value of its total assets on said date.  The intangible assets allocated to the commonwealth shall be calculated as follows: (a) the book value of its total intangible assets on the last day of the taxable year shall be reduced by the book value on said date of its investment in and advances to subsidiary business corporations which represent 80 per cent or more of the voting stock of said corporations, or in the case of a subsidiary business corporation which does not have voting stock, the book value of its investment in such business corporation which represents an 80 per cent or more ownership interest; (b) the amount determined in (a) shall be multiplied by such corporation’s income apportionment percentage, as determined under section 38.[7]

[The main substance of the statutory change is shown in bold.]

The amendment allows a qualified REIT that is an intangible property corporation to subtract the book value of a business corporation that does not have voting stock, where the parent corporation has an 80 percent or more ownership interest. In effect, this allows for the deduction of an ownership interest in a pass-through entity, such as an LLC or a partnership, that is treated for tax purposes as a business corporation under G.L. c. 63, § 30, where the 80 percent ownership threshold is met.

IV.  Massachusetts Basis Adjustments; Corporate Excise

The rules set forth in G. L. c. 63, sec. 31N require certain adjustments to the Massachusetts basis of a corporation’s property, including stock owned by the corporation, for purposes of determining gross income, deductions and other tax items of an entity taxable under chapter 63.

Previously, the Department issued a regulation, 830 CMR 63.31N.1, Massachusetts Property Basis Adjustments, to implement the rules of sec. 31N providing for differences between the Massachusetts and federal basis of property. 

The Act makes a technical correction to sec. 31N to reflect the principle set forth in the regulation that adjustments to Massachusetts basis may be required in the case of items taken into account in determining gross income or net income.[8]

V. Technical and Conforming Changes to G.L. c. 62C, Tax Administration, applicable to Corporations subject to Combined Reporting

Background; G.L. c. 63, sec. 32B

For taxable years beginning on or after January 1, 2009, pursuant to G.L. c. 63, sec. 32B, Massachusetts law requires certain corporations to file corporate excise returns as members of a combined group. A corporation is generally subject to this combined reporting requirement when it is subject to tax and engaged in a unitary business with one or more other corporations under common control that are subject to tax, or would be subject to tax if doing business in the Commonwealth, under G.L. c. 63, secs. 2, 2B, 32D, 39 or 52A.[9] When combined reporting was enacted in 2008, there were no conforming changes made to the tax administration statute, G.L. c. 62C. Rather, procedural aspects of combined reporting have been addressed by regulation or other administrative action. 

Statutory Changes; G.L. c. 62C

As explained below, the Act makes several technical and conforming changes to G.L. c. 62C, the general tax administration chapter of the General Laws, to codify certain procedural aspects of combined reporting that were in effect by regulation or other administrative action. For example, the amendments make clear that the Department may treat the principal reporting corporation as the agent of the members of a combined group for purposes of both the income measure and the non-income measure of the corporate excise, as well as the minimum excise.[10]  

A.    Principal Reporting Corporation; c. 62C, secs. 1 and 11A

Under the Department’s regulation on Combined Reporting, the principal reporting corporation of a combined group reports the income of the combined group in the form and manner prescribed by the Commissioner.[11] The regulation defines the “principal reporting corporation” as  “the taxable member of a combined group that reports the income of the combined group and otherwise acts as the agent of the members of the group, as further described at 830 CMR 63.32B.2(11).”

The Act codifies the definition of “principal reporting corporation” in chapter 62C, the tax administration statute:

'Principal reporting corporation', the corporation responsible for the filing of a combined report of income pursuant to section 32B of chapter 63, or any successor thereof, as may be provided for in regulations or other guidance issued by the commissioner.[12]

The Act further amends chapter 62C by adding new section 11A to clarify the administration of the corporate excise for taxpayers that participate or are required to participate in the filing of a combined report:

In the case of 1 or more corporations that participate or are required to participate in a filing by means of a combined report under section 32B of chapter 63, the commissioner may treat the principal reporting corporation as the agent for all such corporations with respect to all notices and actions authorized or required by this chapter and said chapter 63, whether relating to the income measure or non-income measure of the corporate excise of any such corporation or to the minimum excise tax liability of any such corporation. Such notices and actions include, without limitation: (i) notices and actions associated with processes such as assessment of tax; (ii) execution of consents to extend the time for assessment of tax; (iii) abatements; (iv) hearing requests; (v) refunds; and (vi) collection activity. Nothing in this section shall preclude the commissioner from separately taking any such action or directing any notice to any individual corporation subject to tax under said chapter 63, even where such corporation participated in or was required to participate in the filing of a combined report. Under this chapter, the commissioner may collect any unpaid tax from any individual corporation participating or required to participate in a filing through the means of a combined report to the extent of the joint and several liability for such amount under subsection (e) of said section 32B of said chapter 63.[13]

Section 11A makes clear that the Department may treat the principal reporting corporation as the agent for all the members of a combined group who file or are required to file a combined report with respect to both the income measure and the non-income measure of the corporate excise of combined group members, as well as the minimum excise, for purposes of all notices and actions authorized or required by chapter 62C or chapter 63.

However, the Department is not precluded from taking separate procedural actions or directing notices to any individual member(s) of the combined group that file or are required to file a combined report.

As explained immediately below in parts B - H, several existing sections of chapter 62C were amended by the Act to further clarify the procedural aspects of combined reporting.

B.    Business Corporation Return Filing Requirement; G.L. c. 62C, sec. 11

Combined groups will commonly include both taxable and non-taxable members, and a combined report filed pursuant to G.L. c. 63, sec. 32B will include the income and other attributes of all such members.

The Act clarifies that the filing of a combined report pursuant to G.L. c. 63, sec. 32B in the manner prescribed by the Commissioner will satisfy the Massachusetts return filing requirements under G.L. c. 62C, sec. 11 for any business corporation that, pursuant to such combined report, calculates and reports its own individual corporate excise liability based on the income and non-income measures of the corporate excise or minimum excise tax, as applicable, under G.L. c. 63, secs. 32D or 39.[14]

By contrast, a combined report does not constitute a filing of a return under G.L. c. 62C, sec. 11 for any business corporation that does not calculate and report its own individual corporate excise tax liability under G.L. c. 63, secs. 32D or 39, whether or not the income, sales, or other attributes of such business corporation may be taken into account in the calculation of the corporate excise of an affiliated corporation that does calculate and report an individual corporate excise liability pursuant to such combined report.[15]

C.    Financial Institution Return Filing Requirement; G.L. c. 62C, sec. 12(a)

The Act clarifies that the filing of a combined report pursuant to G.L. c. 63, sec. 32B in the manner prescribed by the Commissioner will satisfy the Massachusetts return filing requirements under G.L. c. 62C, sec. 12(a) for any financial institution that, pursuant to such combined report, calculates and reports its own individual corporate excise liability based on the income measure or minimum excise, as applicable, under G.L. c. 63, secs. 2 or 2B. [16]

By contrast, a combined report does not constitute a filing of a return under G.L. c. 62C, sec. 12(a) for any financial institution that does not calculate and report its own individual corporate excise tax liability under G.L. c. 63, secs. 2 or 2B, whether or not such financial institution’s income, sales, or other attributes may be taken into account in the calculation of the excise under chapter 63 of an affiliated corporation that does calculate and report an individual corporate excise tax liability pursuant to such combined report.[17]             

D.    Assessment of Tax; G.L. c. 62C, sec. 26(b)

In general, G.L. c. 62C, sec. 26(b) provides that if the Commissioner determines, from the verification of a return or otherwise, that the full amount of any tax has not been assessed or is not deemed to be assessed, he or she may assess the same, with interest, at any time within three years after the date the return was filed or the date it was required to be filed, whichever occurs later. Under sec. 26(b), the Commissioner is required to give notice to the person to be assessed of his or her intention to assess at least thirty days prior to the date of assessment and must give the person or his representative the opportunity to confer with the Commissioner or his or her designee within thirty days after the date of such notification. After the expiration of thirty days from the date of such notification, the Commissioner shall assess the amount of tax remaining due the Commonwealth, or any portion thereof, which he or she believes has not therefore been assessed. 

Section 26(b) of chapter 62C has been amended to explain that:


In the case of 1 or more corporations that participated or was required to participate in a filing through the means of a combined report under section 32B of chapter 63, the commissioner may effect the issuance of a notice of the intention to assess or a notice of assessment to each corporation that participated or was required to participate in the combined report with respect to any tax liability due from such corporation under said chapter 63, whether relating to the income measure or non-income measure of the corporate excise or minimum excise tax liability, by issuing a single notice to the principal reporting corporation on its own behalf and as the agent for each corporation that is being assessed. The single notice shall state the net cumulative liability of all such assessed corporations. In such cases, the commissioner shall provide detail as to the assessment that is being issued to each corporation included in the cumulative assessment in the form of work papers made available to the principal reporting corporation in connection with the notice of the cumulative assessment that is directed to such principal reporting corporation. Nothing in this paragraph shall preclude the commissioner from separately and directly assessing any individual corporation subject to tax under said chapter 63, rather than assessing such corporation through the means of a cumulative assessment as referenced in this paragraph, even when such corporation participated in or was required to participate in the filing of a combined report.[18]

E.    Extension of Time for Assessment; G.L. c. 62C, sec. 27

Pursuant to G.L. c. 62C, sec. 27, a  tax assessment may be made after the expiration of the statutory period of limitations if an applicable extension is agreed to in writing by both the Commissioner and the taxpayer before the expiration of the applicable statutory time.

Section 27 of chapter 62C has been amended by adding the following clarification:

In the case of 1 or more corporations that participated in or was required to participate in a filing through the means of a combined report under section 32B of chapter 63, the commissioner and the principal reporting corporation may consent in writing to extending the time for assessment of any component of the corporate excise reported or required to be reported under said chapter 63 by any such corporation, whether relating to the income measure, non-income measure or a minimum excise tax liability under the corporate excise. This consent shall be effective for: (i) any corporation that filed through the means of the combined report, including any corporation that was improperly included in the combined group as determined pursuant to said section 32B of said chapter 63 or that subsequently ceased to be a member of such group; and (ii) any corporation that was improperly excluded from the combined group and that improperly filed a separate return to report its corporate excise under said chapter 63. The period so extended by the commissioner and the principal reporting corporation may be further extended by subsequent agreements in writing made before the expiration of the time as previously extended. The commissioner or a duly authorized representative may examine the books, papers, records and other data of any corporation that participated in or was required to participate in the filing of the combined report. Nothing in this section shall preclude the commissioner from separately executing consents to extend the time for assessment with an individual corporation subject to tax under said chapter 63 for a tax due from such corporation under this chapter or said chapter 63, even where the corporation participated in or was required to participate in the filing of a combined report.[19]

F.    Federal Income Tax Changes; G.L. c. 62C, sec. 30

If the Internal Revenue Service changes the federal taxable income or federal tax credits of any corporation subject to the Massachusetts corporate excise, the corporation must report that change and pay any additional tax due with interest within three months of the date of the final federal determination.[20] This report of federal change must be accompanied by a copy of the IRS Revenue Agent’s Report and any other relevant documentation. The principal reporting corporation for a combined filing group must report any final determination with sufficient detail to attribute and allocate the federal adjustments.[21]

Section 30 of chapter 62C has been amended by adding the following paragraph:

In the case of the filing of a combined report pursuant to section 32B of said chapter 63, the principal reporting corporation shall file all notices of change as provided under this section, together with payment of additional amounts due or an application for abatement, as the case may be, on behalf of all corporations participating in or required to participate in the filing of the combined report. Without limitation, such notices of change shall be required from the principal reporting corporation in the event of a final determination of federal change to the income included or required to be included in the combined report, or any portion thereof, without regard to the particular corporations taking such income into account for federal income tax purposes or to whether such corporations are required to file a return under this chapter. A principal reporting corporation shall be subject to the penalties provided under this section in the event of failure to file a required notice of change under this paragraph.[22]

Effective for any final determination of federal change dated on or after July 1, 2014 (without regard to the taxable year to which the federal change relates), a principal reporting corporation that filed, or is required to file, a combined report pursuant to G.L. c. 63, sec. 32B and G.L. c. 62C is required to file all notices of federal change to income included or required to be included in the combined report. Under newly amended sec. 30, the principal reporting corporation must report any final determination of federal change to the federal taxable income or federal tax credits of any affiliate whose income is included in the combined report where the affiliate does not, or is not required to, file a Massachusetts return.

The Department’s administrative procedures continue to require that the principal reporting corporation for a combined filing group must report any final determination with sufficient detail to attribute and allocate the federal adjustments.

G.    Notice of Assessment; G.L. c. 62C, sec. 31

Under G.L. c. 62C, sec. 31, if the assessment of any tax is in excess of the amount shown on the return as the tax due, the Commissioner shall, as soon as may be, give written notice to the taxpayer of the amount of the assessment, the amount of any balance due and the time when the same is required to be paid.

Section 31 of chapter 62C has been amended by adding the following:

In the case of 1 or more corporations that participated in or are required to participate in a filing through the means of a combined report under section 32B of chapter 63, the commissioner may issue a single notice directed to the principal reporting corporation on its own behalf and as the agent for each corporation that is being assessed. This single notice shall state the net cumulative liability of all such assessed corporations.[23]

H.    Application for Abatement; G.L. c. 62C, sec. 37

Pursuant to G.L. c. 62C, sec. 37, any person aggrieved by the assessment of a tax may file an application for abatement on Form CA-6. A taxpayer must meet the statutory prerequisites for the abatement, including filing the application for abatement within the time limits prescribed by law.[24]

Section 37 of chapter 62C has been amended by adding the following clarification:

In the case of a combined report filed pursuant to section 32B of chapter 63, the principal reporting corporation may act under this section as the agent for any and all corporations that participated in or were required to participate in such filing. In the case of such combined report, the commissioner may offset against an abatement with respect to such corporation, as determined by the commissioner under this section, additional excise that is due or determined to be due under said chapter 63 from any corporation that participated in or was required to participate in the combined report filing, whether that additional excise due may result from the application of the income or non-income measures of the corporate excise or to the minimum excise tax and whether or not the additional tax is based on issues related to the abatement. Offsets based on issues unrelated to the abatement may reduce or eliminate such abatement, but in no case shall such offset give rise to a net amount of tax due where an assessment would otherwise be barred as untimely.[25]

VI.  Motor Vehicle Excise Tax Exemption for Certain Disabled Veterans and Military Members; G.L. c. 60A

The Act exempts from the motor vehicle excise tax vehicles leased by certain disabled veterans or residents who are in active and full-time military service as a member of the Armed Forces of the United States or the National Guard, army or air, of any state, and have been deployed or stationed outside the territorial boundaries of the continental United States for a period of at least 45 days in the calendar year for which the exemption is claimed.[26]

Previously the exemption applied only to vehicles owned by such individuals.

VII. Taxation of Direct Shipments of Wine; G.L. c. 138

Effective January 1, 2015, the Act makes changes to G.L. c. 138, secs. 1, 19F, and 22, which revise the requirements to qualify as a “direct wine shipper.”[27]  The distinction between large wineries with a total annual production of 30,000 gallons or more and small wineries with an annual production below that threshold has been removed from chapter 138, as well as the prior limitation that a large winery could not qualify as a “direct wine shipper” if the winery had contracted with or been represented by a wholesaler for the preceding 6 months.

The Alcoholic Beverages Control Commission (ABCC) is responsible for issuing direct wine shipper licenses in accordance with rules and regulations promulgated by ABCC and may impose fines on wineries shipping wine in violation of c. 138, as amended.  A direct wine shipper licensee may ship up to 12 cases of wine, containing not more than 9 liters of wine per case, per year, to a resident of the Commonwealth.  Direct wine shippers must report their sales to Massachusetts residents on Form AB-DS and pay the applicable excise. To register and file electronically, go to:

http://www.mass.gov/masstaxconnect

See generally TIR 07-1, Taxation of Direct Shipments of Wine (superseded in part); Family Winemakers of California et. al. v. Jenkins, Chairman of the Massachusetts Alcoholic Beverages Control Commission, 592 F.3d 1, U.S. Court of Appeals, First Circuit (2010).

VIII.  Appellate Tax Board Small Claims Procedure; G.L. c. 58A, sec. 7B

The Act simplifies the Appellate Tax Board small claims procedure, G.L. c. 58A, sec. 7B, including outlining when the small claims process governs, requirements for filing an appeal under the small claims procedure, and instances in which a matter may be removed from the small claims procedure.

Under the Act, the current $5,000 threshold under which tax appeal cases are heard through the small claims procedure at the Appellate Tax Board has been increased to $25,000. Under the Act, unless the appellant affirmatively requests that the case be heard under the Board’s formal procedure, any case where the amount of tax placed in dispute by the petition does not exceed $25,000 will automatically be governed by the small claims procedure.[28]

The Commissioner may request removal from the small claims procedure if there is a recurring issue of law and the impact of the issue on similarly situated taxpayers carries an aggregate value of over $250,000 (increased from the prior amount of $200,000) or the Board may determine that the issue to be addressed is not suitable for small claims resolution.[29]

Changes to G.L. c. 58A, sec. 7B are detailed in sec. 1.06 of the Rules of Practice and Procedure of the Appellate Tax Board.

                                                                                                               

Amy Pitter
Amy Pitter
Commissioner of Revenue    
 

AP:MTF:adh

December 18, 2014

TIR 14-11



[1] St. 2014, c. 165, An Act Making Appropriations for the Fiscal Year 2015, signed (in part) by the Governor on July 11, 2014.
[2] St. 2014, c. 165, sec. 95, amending G.L. c. 62, sec. 6J, and St. 2014, c. 165, sec. 114, amending G.L. c. 63, sec. 38R.
[3] The Statement of Financial Accounting Standards No. 109 (“FAS 109”), “Accounting for Income Taxes,” requires that the effects of income taxes be reported on an entity’s financial statements for current and future years.
[4] In order to claim a FAS 109 deduction, a taxpayer must have met the statutory July 1, 2009 filing requirement stating the amount of the FAS 109 deduction to be claimed in future years. See TIR 09-8, TIR 11-6, TIR 12-10, and TIR 13-15.
[5] St. 2014, c. 165, sec. 189, amending St. 2008, c. 173, sec. 95.
[6] St. 2014, c. 165, sec. 105, amending G.L. c. 63, sec. 30(8).
[7] St. 2014, c. 165, sec 106, amending G.L. c. 63, sec. 30(9).
[8] St. 2014, c. 165, sec. 110, amending G.L. c. 63, sec. 31N.
[9] For taxable years beginning before January 1, 2014, G.L. c. 63, sec. 52A imposed a public utility excise on a “utility corporation.” Effective for taxable years beginning on or after January 1, 2014, G.L. c. 63, sec. 52A, the separate corporate excise provisions for utility corporations have been repealed; entities that formerly were subject to the excise under G.L. c. 63, sec. 52A will instead be subject to a corporate excise under G.L. c. 63, sec. 39, the corporate excise imposed on “business corporations.”
[10] As an example of administrative practice before the Act, see Directive 11-5:  For taxable years beginning on or after January 1, 2011, the Department provided revised forms to include the non-income measure excise filing on a schedule that is to be filed with the combined report.
[11]830 CMR 63.32B.2(11)(a). 
[12] St. 2014, c.165, sec. 96, amending G.L. c. 62C, sec. 1.
[13] St. 2014, c. 165, sec. 98, amending G.L. c. 62C, to add new sec. 11A.
[14] St. 2014, c. 165, sec. 97, amending G.L. c. 62C, sec. 11.
[15] Ibid.
[16] St. 2014, c. 165, sec. 99, amending G.L. c. 62C, sec. 12.
[17] Ibid.
[18] St. 2014, c. 165, sec. 100, amending G.L. c. 62C, sec. 26(b).
[19] St. 2014, c. 165, sec. 101, amending G.L. c. 62C, sec. 27.
[20] G.L. c. 62C, sec. 30.
[21] Administrative Procedure 619.3.
[22] St. 2014, c. 165, sec. 102, amending G.L. c. 62C, sec. 30.
[23] St. 2014, c. 165, sec. 103, amending G.L. c. 62C, sec. 31.
[24] See G.L. c. 62C, sec. 37 and TIR 11-6, Part VIII.
[25] St. 2014, c. 165, sec. 104, amending G.L. c. 62C, sec. 37.
[26] St. 2014, c. 165, sec. 91, amending G.L. c. 60A.
[27] St. 2014, c. 165, secs. 160 through 166, amending G.L. c. 138, secs. 1, 19F and 22.
[28] St. 2014, c. 165, secs. 85 and 86, amending G.L. c. 58A, sec. 7B.
[29] St. 2014, c. 165, sec. 89, amending G.L. c. 58A, sec. 7B(e).