|
By Mrs. Walrath of Stow, petition (accompanied by bill, House, No. 3161) of Patricia A. Walrath and others relative to eliminating the sting tax, so-called, on Subchapter S corporations. Revenue. |
The Commonwealth of Massachusetts
——————
PETITION OF:
Associated Industries of Massachusetts
Jeffrey Davis Perry
Bradley H. Jones, Jr.
Mary S. Rogeness
Elizabeth A. Poirier
Bradford Hill
——————
In the Year Two Thousand and Seven.
——————
|
An Act relative to eliminating the sting tax on Subchapter S corporations. |
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
Chapter 63 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by striking Section 32D in its entirety and inserting in place thereof the following new section:-
Section 32D (a) Any domestic business corporation or foreign corporation which is an S corporation or qualified subchapter S subsidiary, as defined under section 1361 of the Code, shall determine its gross income and deductions by taking into account subchapter S of said Code. The taxable income or net loss of the S corporation or qualified subchapter S subsidiary shall be taxed as if it were realized or incurred directly by the shareholders or owners of the S corporation under chapter 62 or 63 of the General Laws, as applicable.
(b) The income of an S corporation or qualified subchapter S subsidiary shall not otherwise by subject to the income measure of the corporate excise under section 32 or 39.