Technical Information Release  Working Draft TIR: Provisions in the 2023 Tax Relief Legislation

Date:	01/05/2024
Referenced Sources:	General Laws

I. Introduction

This Technical Information Release (“TIR”) explains certain provisions included in the 2023 tax relief legislation entitled “An Act to Improve the Commonwealth’s Competitiveness, Affordability, and Equity” (the “Act”)[1] that pertain to the income tax, G.L. c. 62, the corporate excise, G.L. c. 63, the estate tax, G.L. c. 65C, and the alcoholic beverage excise applicable to cider (the “cider excise”), G.L. c. 138, § 21(b).

The following provisions are discussed in this TIR:

A. Changes affecting only G.L. c. 62 taxpayers[2]

• Replacement of the Massachusetts dependent care expense and household dependent tax credits with the child and dependent tax credit
• Increase to the Massachusetts earned income tax credit
• Increase to the real estate tax credit for certain persons aged 65 and older
• Increase to the tax credit for failed cesspool or septic system Title V expenditures
• Increase to the Massachusetts lead paint removal tax credit
• Increase to the Massachusetts rental deduction
• Expansion of the Massachusetts commuter deduction
• Deduction for employer payments of employee qualified education loans
• Decrease of the tax rate applicable to short term capital gains
• Changes to Massachusetts joint filing requirements
• Modifications to the excess revenue tax credit

B. Changes affecting both G.L. c. 62 and G.L. c. 63 taxpayers[3]

• Increase to the annual cap on low-income housing tax credits
• Increase to the annual cap on tax credits awarded under the housing development incentive program
• Increase to the annual amount of dairy farm tax credits available for G.L. c. 62 and G.L. c. 63 taxpayers
• Changes to the apprentice tax credit

C. Changes affecting only G.L. c. 63 taxpayers

• Move to single sales factor apportionment for all business corporations and financial institutions
• Financial institution apportionment of investment and trading income

D. Changes to the estate tax

E. Changes to the cider excise

II. Changes affecting only G.L. c. 62 taxpayers

A. Replacement of the Massachusetts dependent care expense and household dependent tax credits with the child and dependent tax credit

Prior to the Act, G.L. c. 62, §§ 6(x) and (y) provided G.L. c. 62 taxpayers with a dependent care expense tax credit and household dependent tax credit, respectively.  The dependent care expense tax credit was a refundable, non-transferable credit for certain expenses, such as household expenses and expenses for the care of certain qualified individuals, incurred to enable a taxpayer to be gainfully employed.  The dependent care expense tax credit could not exceed $240 if the taxpayer claimed expenses for one qualifying individual, or $480 if the taxpayer claimed expenses for two or more qualifying individuals.  The household dependent tax credit was a refundable, non-transferrable tax credit for taxpayers with certain dependents.  The household dependent tax credit was equal to $180 if the taxpayer claimed one dependent or $360 if the taxpayer claimed two or more dependents.  The dependent care expense tax credit and the household dependent credit could not both be claimed in the same tax year.      

Effective for taxable years beginning on or after January 1, 2023, the Act repeals G.L. c. 62, §§ 6(x) and (y) and replaces them with new subsection (x), which provides a refundable, non-transferable child and dependent tax credit for G.L. c. 62 taxpayers who maintain a household that includes certain individuals.[4] 

The credit is available to taxpayers who maintain a household that includes at least one individual who is (1) under the age of 13 and who qualifies for the federal exemption for dependents provided by Internal Revenue Code (“Code”) § 151; (2) a qualifying individual pursuant to Code § 21, which includes a dependent, as defined in Code § 152, or the taxpayer’s spouse, where such dependent or spouse is physically or mentally incapable of taking care of himself or herself and principally lives with the taxpayer; or (3) a dependent under Code § 152 who is age 65 or over or disabled.[5]  Where the credit exceeds the taxpayer’s tax liability, the excess will be treated as an overpayment and paid to the taxpayer without interest.[6]

For the tax year beginning on or after January 1, 2023, the amount of the credit is equal to $310 for each such individual, with no limit to the number of such individuals that may qualify for the credit.[7]  Effective for tax years beginning on or after January 1, 2024, the amount of the credit is increased to $440 for each such individual, with no limit to the number of such individuals that may qualify for the credit.[8]

The credit cannot be claimed by married taxpayers that file separate Massachusetts personal income tax returns.[9] With respect to a taxpayer who is a non-resident for part of the taxable year, the credit must be multiplied by a fraction, the numerator of which is the number of days in the taxable year the taxpayer resided in the Commonwealth and the denominator of which is the total number of days in the taxable year.[10]  A taxpayer who is a non-resident throughout the entire taxable year cannot claim the credit.[11]

B. Increase to the Massachusetts earned income tax credit

G.L. c. 62, § 6(h) provides a refundable earned income tax credit ("EITC") for certain low-income individuals in Massachusetts who (i) have earned income and (ii) meet the requirements for the federal EITC. In general, individuals must qualify for and claim the federal EITC allowed under Code § 32 to be eligible to claim the Massachusetts EITC.  Individuals may claim the Massachusetts EITC even if they are under the dollar threshold that necessitates the filing of a Massachusetts personal income tax return.[12]  However, to receive the credit, an individual must file a Massachusetts personal income tax return and affirmatively claim the credit.[13] 

The amount of the Massachusetts EITC an individual may claim is a statutorily defined percentage of the federal EITC to which the individual is entitled.[14] The Act amends G.L. c. 62, § 6(h) to increase this percentage from 30% of the computed federal credit to 40%.[15]  With respect to a person who is a non-resident for part of the taxable year, the EITC will be limited to 40% of the federal credit multiplied by a fraction, the numerator of which is the number of days in the taxable year the person resided in the Commonwealth and the denominator of which is the total number of days in the taxable year.[16]  A taxpayer who is a non-resident for the entire taxable year cannot claim the EITC for that year.[17]   

The increase to the Massachusetts EITC is effective for taxable years beginning on or after January 1, 2023.

C. Increase to the real estate tax credit for certain persons aged 65 and older

G.L. c. 62, § 6(k) provides certain G.L. c. 62 taxpayers who own or rent a principal residence located in Massachusetts and are age 65 or older with a refundable, non-transferrable credit.  Also known as the "circuit breaker credit," this credit is based upon the actual real estate taxes or rent paid by a taxpayer eligible to claim the credit, provided that the credit does not exceed the statutory maximum for the taxable year.  Under G. L. c. 62, § 6(k)(4), the statutory maximum is adjusted annually by multiplying the statutory base amount by the cost-of-living adjustment for the calendar year in which the taxable year begins.  Prior to the Act, the statutory base amount was $750, which, after taking cumulative cost-of-living adjustments into account, yielded a maximum credit amount of $1,200 for the 2022 tax year.  See TIR 22-12.

For a homeowner, the credit is equal to the amount by which the taxpayer's municipal property tax payments made in the current tax year, including water and sewer use charges and stormwater fees, but excluding any abatement or exemption granted, exceeds 10% of the taxpayer's total income for the taxable year, to the extent that such amount does not exceed the statutory maximum for the taxable year.

For a renter, the credit is equal to the amount by which 25% of the rent actually paid by the taxpayer during the taxable year for the occupancy of the principal residence exceeds 10% of the taxpayer's total income for the taxable year, to the extent that such amount does not exceed the statutory maximum for the taxable year.

The Act amends G. L. c. 62, § 6(k)(4) to increase the statutory base amount from $750 to $1,500, effective for taxable years beginning on or after January 1, 2023.[18]  The maximum amount of the credit for the 2023 tax year is $2,590 after taking cumulative cost-of-living adjustments into account.  See TIR 23-11.     

D. Increases to the credit for failed cesspool or septic system Title V expenditures

G. L. c. 62, § 6(i) allows G.L. c. 62 taxpayers who own and occupy residential property located in Massachusetts as their principal residence to claim a non-refundable, non-transferrable credit ("Title V credit") for certain expenditures associated with the repair or replacement of a failed cesspool or septic system on such property (“Title V expenditures”).  Prior to the Act, the Title V credit claimed in any tax year could not exceed $1,500 but any excess credit could be carried over and applied in the five subsequent tax years, up to a total maximum of $6,000.  The credit was calculated using 40% of Title V expenditures, which were limited to the lesser of the taxpayer's actual expenditures or $15,000.   Where a taxpayer received a below-market interest rate loan from the Commonwealth, or a below-market interest rate betterment from a municipality, the amount of credit that could be claimed was reduced by the amount of the interest subsidy the taxpayer received at the time the credit was claimed.  Additionally, the Title V expenditures generally had to have been made in accordance with the provisions of 310 CMR 15.000 et seq., the State Environmental Code, Title V, as promulgated by the Massachusetts Department of Environmental Protection (DEP) in 1995.[19] 

The Act amends G. L. c. 62, § 6(i) to increase the amount of the credit that can be claimed in a tax year from $1,500 to $4,000.[20]  The maximum credit amount allowed is increased from $6,000 to $18,000.[21]  The Act increases the percentage of the allowable Title V expenditures used to calculate the Title V credit from 40% to 60%,[22] and increases the cap for such Title V expenditures from $15,000 to $30,000.[23] The Act also eliminates the requirement to reduce the amount of the credit by an amount equal to the total interest subsidy or grant received from the Commonwealth or a municipality.[24]  Lastly, the Act amends G.L. c. 62, § 6(i) to provide that Title V expenditures must be made in accordance with Title V of the State Environmental Code as currently in effect.[25]

The amendments to the Title V credit are effective for taxable years beginning on or after January 1, 2023.  For excess credit amounts carried forward from taxable years beginning before January 1, 2023, the amount of the credit continues to be governed by the limitations in effect under prior law: the maximum annual credit amount is $1,500; the maximum total credit amount is $6,000; the percentage of allowable Title V expenditures used to calculate the credit is 40%; and the cap for such Title V expenditures is $15,000.

E. Increase to the Massachusetts lead paint removal tax credit

G.L. c. 62, § 6(e) provides a non-refundable, non-transferrable tax credit for lead paint removal to G.L. c. 62 taxpayers who own residential premises in Massachusetts con­structed prior to 1978 and who incurred expenses for covering or removing lead paint on such premises.  Prior to the Act, such taxpayers who brought the premises into full compliance with the Massachusetts laws concerning lead abatement, G.L. c. 111, §§ 189A through 199B, were allowed to claim a credit equal to the lesser of the cost of the de-leading or $1,500 per dwelling unit or, where the premises were brought into interim control pending full compliance pursuant to M.G.L. c. 111, §197(b), the lesser of one-half of the cost of the de-leading or $500.  The Act doubles these maximum amounts to $3,000 and $1,000, respectively.[26]

The increases to the maximum amounts for the lead paint removal tax credit are effective for taxable years beginning on or after January 1, 2023. 

F. Increase to the Massachusetts rental deduction

G.L. c. 62, § 3(B)(a)(9) allows G.L. c. 62 taxpayers who pay rent for their principal place of residence in Massachusetts to deduct up to 50% of such rent, up to a statutory maximum.  Prior to the Act, the deduction could not exceed $3,000 for a single person, a taxpayer who qualifies as a head of household as provided by Code § 2(b), or for a married couple.     

The Act amends G.L. 62, § 3(B)(a)(9) to increase the maximum amount that can be deducted as rent paid for a principal place of residence from $3,000 to $4,000.[27]

The increase to the maximum amount of the Massachusetts rental deduction is effective for taxable years beginning on or after January 1, 2023.  

G. Expansion of the Massachusetts commuter deduction

G.L. c. 62, § 3(B)(a)(15) allows a deduction for G.L. c. 62 taxpayers who incur certain commuting expenses that are not reimbursed by an employer or otherwise.  For taxpayers filing as a single person, as a married person filing a separate return, or as head of household, the deduction applies only to the portion of such expenses that exceeds $150, up to a maximum amount of $750.[28]  For a married couple filing a joint return, the deduction applies only to the portion of such expenses incurred by each spouse that exceeds $150, and the total amount of the deduction cannot exceed $750 for each spouse.[29]  Prior to the Act, the deduction applied only to amounts expended by an individual for tolls paid for through a Fast Lane account or for weekly or monthly transit commuter passes for Massachusetts Bay Transit Authority (“MBTA”) transit, bus, commuter rail, or commuter boat.[30]

The Act amends G.L. c. 62, § 3(B)(a)(15) to include as commuting expenses eligible for the deduction expenses incurred for all MBTA fares, Massachusetts regional transit authority fares, bikeshare memberships, bicycles, including electric bicycles and bicycle improvements, repairs, and storage, and for any fare for a commuter boat owned, operated, or contracted by a municipality, public or quasi-public entity, agency, or authority.[31]

The expansion of the Massachusetts commuter deduction is effective for taxable years beginning on or after January 1, 2023.

H. Deduction for employer payments of employee qualified education loans

The Act adds G.L. c. 62, § 3(B)(a)(20), which allows an employee subject to tax under G.L. c. 62 to deduct payments by their employer of principal or interest with respect to the employee’s qualified education loan, as defined by Code § 221, when those payments are not otherwise excluded from gross income under Code § 127.[32]  The parameters of the deduction are substantially identical to the federal exclusion from gross income provided by Code § 127(c)(1), which Massachusetts follows as amended on January 1, 2022 and in effect for the taxable year.[33]  However, while Code § 127(c)(1) is limited to $5,250 per employee and applies only to employer payments made by January 1, 2026, the new Massachusetts deduction is not subject to a dollar limit nor does it have a sunset date.[34]  Therefore, for taxable years beginning on or after January 1, 2023, G.L. c. 62 taxpayers will be able to deduct employer payments of principal or interest for qualified education loans pursuant to G.L. c. 62, § 3(B)(a)(20) that are not otherwise excluded from gross income under Code § 127, including the amount of such payments that exceeds $5,250.    

I. Decrease of the tax rate applicable to short term capital gains

Prior to the Act, G.L. c. 62, § 4(a)(1) provided that the income tax imposed by G.L. c. 62 taxed all Part A taxable income, which consists of capital gains from the sale or exchange of capital assets held for one year or less (“short term capital gains”), long-term gains from collectibles, and pre-1996 gains reported on the installment method at a rate of 12%.  The Act amends G.L. c. 62, § 4(a)(1) to decrease the tax rate applicable to short term capital gains from 12% to 8.5%.[35]  The tax rate applicable to long-term gains from collectibles and pre-1996 gains reported on the installment method remains unchanged.

The decrease of the tax rate applicable to short term capital gains is effective for taxable years beginning on or after January 1, 2023.

J.  Changes to Massachusetts joint filing requirements

G.L. c. 62C, § 6(a) requires that all Massachusetts residents and non-residents who have Massachusetts gross income subject to tax under G.L. c. 62 exceeding $8,000 file a personal income tax return.  G.L. c. 62C, § 6(a) further provides that a married couple may make a single return jointly to satisfy this tax return filing obligation.  Such a joint return includes the income, exemptions, and deductions of both spouses.[36] 

The Act amends G.L. c. 62C, § 6(a) by adding subparagraph (2), which requires that every married couple file a joint return for any tax year in which they file a joint federal income tax return.[37]  The Act requires that the Department of Revenue provide appropriate adjustments or for an exemption from the requirement to file a joint return where one or both spouses are Massachusetts non-residents and have items of income, exemptions or deductions unrelated to their Massachusetts income.[38] 

This change to the Massachusetts joint filing requirements is effective for taxable years beginning on or after January 1, 2024.[39]

K. Modifications to the excess revenue tax credit

G.L. c. 62F, § 6 provides that if the State Auditor for the Commonwealth determines that net state tax revenues for a fiscal year exceeded allowable state tax revenues, as those terms are defined in G.L. c. 62F, § 2, for that fiscal year, such excess state revenues shall be credited to G.L. c. 62 taxpayers with a tax liability who filed an income tax return in both the current and previous taxable year through an excess revenue credit .  Prior to the Act, the excess revenue credit was applied with respect to the current G.L. c. 62 tax liability of each G.L. c. 62 taxpayer on a proportional basis, as determined based on the G.L. c. 62 tax liability incurred by all G.L. c. 62 taxpayers in the immediately preceding taxable year.[40]

Under the Act, the amount of any excess revenue credit will be determined by dividing the total amount of excess state revenue by the total number of taxpayers filing an income tax return in the previous taxable year, thereby providing each G.L. c. 62 taxpayer with an equal credit amount.[41] A married couple filing a joint personal income tax return will be treated as two separate taxpayers, with each eligible to receive the credit.[42]  Where the credit exceeds a taxpayer’s tax liability, the excess will be treated as an overpayment and paid to the taxpayer without interest.[43]

These changes to the excess revenue credit are effective for taxable years beginning on or after January 1, 2023.

III. Changes affecting both G.L. c. 62 and G.L. c. 63 taxpayers

A. Increase to the annual cap on low-income housing tax credits

Under G.L. c. 62, § 6I and G.L. c. 63, § 31H, a non-refundable, transferable credit is available to G.L. c. 62 and G.L. c. 63 taxpayers that invest in affordable rental housing (“Qualified Massachusetts Projects”) to the extent authorized by the Massachusetts Executive Office of Housing and Livable Communities (EOHLC). The credit generally applies ratably over a five-year period and may be claimed in the year that a Qualified Massachusetts Project is placed in service and in each of the four subsequent taxable years.[44] 

EOHLC allocates the credit based on an annual aggregate limit, which, prior to the Act, was $40,000,000.[45]  Effective for tax years beginning on or after January 1, 2023, the Act raises the credit’s annual limit from $40,000,000 to $60,000,000.[46]  Prior to the Act, the credit’s annual limit was scheduled to decrease to $20,000,000 for tax years beginning on or after January 1, 2026.[47] However, the Act provides the new annual limit of $60,000,000 without reference to any future decrease.[48]

B. Increase to the annual cap on tax credits awarded under the housing development incentive program

G.L. c. 62, § 6(q) and G.L. c. 63, § 38BB provide a non-refundable, transferable tax credit to G.L. c. 62 and G.L. c. 63 taxpayers that invest in certified housing development projects in Massachusetts. Prior to the Act, the total amount of credits that could be awarded in a calendar year was capped at $10,000,000 and that limit was scheduled to decrease to $5,000,000 for calendar years beginning on or after January 1, 2024.[49]

The Act temporarily increases the annual cap to $57,000,000 for calendar year 2023, any portion of which not authorized in 2023 may be authorized in subsequent years.[50] For taxable years beginning on or after January 1, 2024, the Act creates an annual cap of $30,000,000 without reference to any future decrease.[51]

C. Increase to the annual amount of dairy farm tax credits

G.L. c. 62, § 6(o) and G.L. c. 63, § 38Z provide a refundable, non-transferable tax credit for G.L. c. 62 and G.L. c. 63 taxpayers that are dairy farmers registered under G.L. c. 94, § 16A.  The credit is based on the amount of milk a dairy farm produces and sells and is available to eligible individuals and corporations if the “United States Federal Milk Marketing Order Price” drops below a trigger price at any time during the taxable year.[52]

The Act increases the total annual cumulative amount of dairy farm credits authorized for G.L. c. 62 and G.L. c. 63 purposes from $6,000,000 annually to $8,000,000 annually.[53]

This increase to the total annual cumulative amount of dairy farm credits is effective for taxable years beginning on or after January 1, 2023.

D. Changes to the apprenticeship tax credit

G.L. c. 62 § 6(v) and G.L. c. 63 § 38HH provide a refundable, non-transferable credit for G.L. c. 62 and G.L. c. 63 taxpayers that are employers in the Commonwealth. The credit is equal to the lesser of $4,800 or 50% of the wages paid to each qualified apprentice that the employer hires, provided that the apprentice is hired (i) in computer occupations, as defined by Standard Occupational Codes (“SOC”) 15-1200, (ii) as health technologists and technicians, as defined by SOC 29-2000, (iii) as health practitioner support technologists and technicians, as defined by SOC 29-2050, (iv) in healthcare support occupations, as defined by SOC 31-0000, or (v) in production occupations in the manufacturing industry, as defined by SOC 51-0000.[54] The Act amends G.L. c. 62, § 6(v) and G.L. c. 63, § 38HH, effective for tax years beginning on or after January 1, 2023 to give the Secretary of the Massachusetts Executive Office of Labor and Workforce Development (“Secretary”) the authority to expand the list of eligible occupations to “other expansion industries” that the Secretary “identifies as critical to a regional labor market economy.”[55]

IV. Changes affecting only G.L. c. 63 taxpayers

A. Single sales factor apportionment

G.L. c. 63, §§ 2A and 38 provide apportionment methods for financial institutions and business corporations that have income subject to tax in Massachusetts and one or more other state(s) to determine the portion of their income that is subject to tax in Massachusetts.  Prior to January 1, 2025, financial institutions are required to apportion their net income by multiplying that income by a fraction, the numerator of which is the sum of the property factor, payroll factor, and receipts factor and the denominator of which is three.  Most business corporations are required to apportion their net income by multiplying it by a fraction, the numerator of which is the sum of the property factor, payroll factor, and a double weighted sales factor and the denominator of which is four.[56]  Business corporations treated as a manufacturing corporation under G.L. c. 63, § 38 are required to apportion their net income by multiplying that income by a fraction, the numerator of which is the sum of the property factor, payroll factor, and a sales factor and the denominator of which is three.

Effective for tax years beginning on or after January 1, 2025, G.L. c. 63, §§ 2A and 38 are amended to require all financial institutions and business corporations that must apportion their income to Massachusetts to determine the portion of their net income subject to tax in Massachusetts by using only the receipts or sales factor.[57] 

B. Financial institution apportionment of investment and trading income

G.L. c. 63, § 2A(d)(xii) provides sourcing rules for financial institutions to source their receipts from investment and trading assets and activities.  Receipts from investment and trading assets and activities are generally included in the numerator of the sales factor based on the portion of the value of the financial institution’s investment or trading assets properly assigned to a regular place of business of the financial institution in Massachusetts.  Additionally, an election is allowed to instead base the sourcing on the portion of gross receipts from such assets and activities properly assigned to a regular place of business of the financial institution in Massachusetts.  

The Act changes the method by which financial institutions are required to source receipts from investment and trading assets and activities.[58]  Pursuant to the Act, the amount of such receipts included in the numerator of the sales factor is determined by multiplying the total of such receipts by a fraction, the numerator of which is the financial institution’s receipts, other than receipts from investment and trading assets and activities, sourced to Massachusetts and the denominator of which is the financial institution’s total receipts, other than receipts from investment and trading assets and activities.[59]  There is no elective variation on this rule.[60]

These changes are effective for tax years beginning on or after January 1, 2025.[61]

V. Changes to the estate tax

G.L. c. 65C, § 2A(a) imposes a tax on the estates of decedents who were Massachusetts residents at their time of death.  G.L. c. 65C, § 2A(b) imposes a tax on real and tangible personal property located in Massachusetts and included in the estates of decedents who were not Massachusetts residents at their time of death.  The estate tax is equal to the credit for state death taxes that would have been allowable under Code § 2011, as in effect on December 31, 2000.[62] 

Under previous law, G.L. c. 65C, § 2A(a) provided that the tax was reduced by the lesser of (1) the amount of the estate tax or similar tax imposed by any other state, or (2) the tax multiplied by a fraction, the numerator of which was the value of real or tangible personal property located in the Commonwealth an­d the denominator of which is the value of real or tangible personal property wherever situated.  Additionally, the estate tax applied to an estate with a value exceeding $1,000,000.[63]

The Act amends the estate tax with respect to resident and nonresident decedents dying on or after January 1, 2023.  In particular, the Act amends the tax calculation for estates of resident decedents dying on or after January 1, 2023 that include real or tangible personal property located outside Massachusetts such that the tax is reduced by multiplying the tax by a fraction, the numerator of which is the value of real or tangible personal property located in the Commonwealth an­d the denominator of which is the value of real or tangible personal property wherever situated.[64]  The Act also eliminates the estate tax for an estate valued at $2,000,000 or less.  In addition, the Act allows a credit for all estates equal to the lesser of the tax that would otherwise be imposed or $99,600.[65]

VI. Changes to the cider excise

G.L. c. 138, § 21(b) imposes an excise on certain types of cider.  Prior to the Act, G.L. c. 138, § 21(b) provided that cider containing more than 3% but not more than 6% alcohol by weight was subject to a tax rate of 3 cents per wine gallon.  In addition, G.L c. 138, § 21(c) provided that certain still wines, other than cider, containing more than 3% but not more than 6% alcohol by weight, were subject to a tax rate at 55 cents per wine gallon. 

The Act amends G.L. c. 138, § 21(b) and (c) to change the maximum alcohol content eligible for the cider tax rate of 3 cents per wine gallon from 6% alcohol by weight to 8.5% alcohol by volume.[66]  The excise rates under G.L. c. 138, § 21(b) and (c) remain unchanged.

The change to the measurement of alcohol content is effective for taxable years beginning on or after January 1, 2023.

 

WORKING DRAFT FOR PRACTITIONER COMMENT - 1/5/24

[1] St. 2023, c. 50, signed into law on October 4, 2023.

[2] Chapter 62 taxpayers include Massachusetts resident and non-resident individuals, trusts, partnerships, and estates.

[3] Chapter 63 taxpayers include financial institutions and business corporations subject to an excise imposed by G.L. c. 63.

[4] The Act, § 21.

[5] Id.

[6] Id.

[7] Id.

[8] The Act, §§ 22, 46.

[9] The Act, § 21.

[10] Id.

[11] Id.

[12] G.L. c. 62, § 6(h)(1).

[13] Id.

[14] Id.

[15] The Act, § 10.

[16] G.L. c. 62, § 6(h)(1).

[17] G.L. c. 62, § 6(h)(1).

[18] The Act, § 17.

[19] G.L. c. 62, § 6(i).

[20] The Act, § 15.

[21] The Act, § 16.

[22] The Act, § 12.

[23] The Act, § 14.

[24] The Act, § 16.

[25] The Act, § 13.

[26] The Act, § 9.

[27] The Act, § 4.

[28] G.L. c. 62, § 3(B)(a)(15)

[29] Id.

[30] Id.

[31] The Act, §§ 5, 6.

[32] The Act, § 7.

[33] G.L. c. 62, § 1(c).  See also TIR 23-5.

[34] The Act, § 7.

[35] The Act, § 8.

[36] G.L. c. 62C § 6(a)

[37] The Act, § 24.

[38] Id.

[39] The Act, § 46.

[40] G.L. c. 62F, § 6.

[41] The Act, § 26.

[42] Id.

[43] Id.

[44] G.L. c. 62, § 6I(c)(3); G.L. c. 63, § 31H(c)(3).

[45] St. 2020, c. 358, §§ 59, 61.

[46] The Act, §§ 23, 30.

[47] St. 2020, c. 358, §§ 59, 61, 112.

[48] The Act, §§ 23, 30.

[49] St. 2014 c. 287 §§ 45, 46, 62, 63, 124A (inserted by St. 2018 c. 99 § 26)

[50] The Act, § 42.

[51] The Act, §§ 19, 33, 45.

[52] G.L. c. 62, § 6(o)(1); G.L. c. 63, § 38Z(a).

[53] The Act, §§ 18, 32.

[54] G.L. c. 62 § 6(v)(1); G.L. c. 63 § 38HH(a)

[55] The Act, §§ 20, 34.

[56] G.L. c. 63, § 2A(b), § 38(c).

[57] The Act, §§ 27, 29, 31; St. 2023, c. 77, § 194.

[58] The Act, § 28.

[59] Id.

[60] Id.

[61] St. 2023, c. 77, § 194.

[62] M.G.L. c. 65C, §§ 2A(a) and (b).

[63] M.G.L. c. 65C, §§ 2A(a) and (b); The Act, § 37.

[64] Id.

[65] The Act, § 37.

[66] The Act, §§ 38-39.