Technical Information Release  Working Draft TIR: Tax Provisions in the Fiscal Year 2026 Final Mid-Year Supplemental Appropriation Bill

Date:	06/23/2026
Referenced Sources:	Massachusetts General Laws

This Technical Information Release (“TIR”) explains certain provisions included in “An Act Making Appropriations for the Fiscal Year 2026 to Provide for Supplementing Certain Existing Appropriations and for Certain Other Activities and Projects” (the “Supplemental Budget”)^[1] that pertain to the Massachusetts tax laws, including conformity with specific provisions in Public Law 119-21, commonly known as the “One Big Beautiful Bill Act” (“P.L. 119-21”). 

This TIR discusses the following provisions in the Supplemental Budget:

• Delayed Conformity to Certain Provisions in Public Law 119-21:
  • Domestic Research and Experimental Expense Deductions Under Code § 174 and New Code § 174A
  • Bonus Depreciation for Qualified Production Property Under Code § 168(n)
  • Increased Dollar Thresholds for Deductible Amounts when Expensing Certain Business Assets Under Code § 179
  • Modification of Limitation on Business Interest Expense Deduction Under Code § 163(j)
  • Changes to the Tax Treatment of Investments in Qualified Opportunity Zones Under Code § 1400Z-2
• Relief from Some Penalties and Interest for 2025 Late Payments and Underpayments Made Prior to Enactment of the Supplemental Budget
• Massachusetts Conformity with Future Code Amendments
• New Tax Credit for Farm Food Donations
• New Tax Credit for Sustainable Aviation Fuel 
• Changes to Allocations of Paid Family and Medical Leave Contributions
• Additional Pass-Through Entity Excise
• New Sales Tax Exemption for Materials, Tools and Fuel Used in the Development of Multifamily Housing

I. Delayed Conformity to Certain Provisions in Public Law 119-21

On July 4, 2025, P.L. 119-21 became law.^[2] Public Law 119-21 made numerous amendments to the Internal Revenue Code (“Code”). The Supplemental Budget delays Massachusetts conformity to certain of these Code amendments under the Massachusetts income tax imposed by G.L. c. 62 and the net income measure of the Massachusetts corporate excise (the “Massachusetts corporate excise”) imposed by G.L. c. 63.

Generally, Massachusetts conforms to the Code definitions of gross income and net income under the current Code as amended and in effect for the taxable year for corporate excise purposes.^[3] For Massachusetts income tax purposes, Massachusetts follows the provisions of the Code as amended and in effect on January 1, 2024.^[4] However, in certain instances for income tax purposes, including the deduction of trade and business expenses, Massachusetts specifically adopts provisions of the Code as currently in effect for the taxable year.^[5]

A. Domestic Research and Experimental Expense Deductions Under Code § 174 and New Code § 174A

Public Law 119-21 amended Code § 174 with respect to domestic research and experimental expenses paid or incurred for taxable years beginning after December 31, 2024, and created a new Code section, § 174A, which allows for the full expensing of domestic research and experimental costs paid or incurred by the taxpayer in the taxable year.^[6] Under the new Code § 174A, taxpayers may elect to fully deduct such expenditures in the current taxable year or amortize them over periods consisting of five or ten years.^[7] Taxpayers must continue to amortize foreign research and experimental costs under Code § 174 over 15 years.^[8]

For those research and experimental costs incurred between January 1, 2022 and December 31, 2024 but not yet fully amortized, P.L. 119-21 includes transition rules that allow taxpayers to elect to deduct any remaining unamortized expenditures over a one-year period or ratably over a two-year period.^[9] The transition rules also allow for small business taxpayers with annual gross receipts of $31 million or less to apply retroactively the new Code § 174A for taxable years 2022 through 2024.^[10]

Pursuant to the Supplemental Budget, Massachusetts delays conformity to Code § 174A and the amendments to Code § 174 until taxable years beginning on or after January 1, 2026.^[11]  Therefore, Massachusetts taxpayers claiming Code § 174A deductions for federal tax purposes, or the deductions allowed under the transition rules in P.L. 119-21, § 70302(f), must recalculate such deductions and instead apply Code § 174 without regard to the amendments made by P.L. 119-21 when computing their adjusted gross income under G.L. c. 62, § 2, or net income under G.L. c. 63, § 30.4 for taxable years beginning on or after January 1, 2022 but before January 1, 2026.^[12]

B. Bonus Depreciation for Qualified Production Property Under Code § 168(n)

Public Law 119-21 created a new Code subsection, § 168(n), which allows taxpayers to claim a full depreciation deduction for qualified production property in the year it is placed in service.^[13] Qualified production property is nonresidential real property elected by the taxpayer to be treated as such and that (1) is used by the taxpayer as an integral part of a qualified production activity in the U.S., (2) was originally used by the taxpayer, (3) the construction of which began after January 19, 2025 and before January 1, 2029, and that (4) is placed in service before January 1, 2031.^[14] A taxpayer can meet the original use requirement even if the property was not used in a qualified production activity between January 1, 2025 and May 12, 2025.^[15] The adjusted basis of the qualified production property shall be reduced by the amount of such deduction.^[16]

Pursuant to the Supplemental Budget, Massachusetts delays conformity to Code § 168(n) until taxable years beginning on or after January 1, 2027.^[17] Therefore, Massachusetts taxpayers must back out any federal deductions taken under Code § 168(n) when computing their adjusted gross income under G.L. c. 62, § 2, or net income under G.L. c. 63, § 30.4 for taxable years beginning on or after January 1, 2025 but before January 1, 2027.^[18]

C. Increased Dollar Thresholds for Deductible Amounts when Expensing Certain Business Assets Under Code § 179

Code § 179 allows businesses to deduct the full purchase price of qualifying equipment, software, and property in the year it is placed in service, rather than depreciating the costs over time.^[19] Previously, this deduction was limited to $1 million per year and was reduced by the cost of the property over $1 million and phased-out for costs exceeding $2.5 million. Public Law 119-21 increased the expense limitation for Code § 179 property placed in service for taxable years beginning on or after January 1, 2025, from $1 million to $2.5 million and increased the amounts applicable to the reduction and phase-out from $2.5 million to $4 million.^[20] The inflation adjustment formula for increasing these dollar amounts was also modified by updating the base year from 2016 to 2024.^[21]

Pursuant to the Supplemental Budget, Massachusetts delays conformity to the amendments made to Code § 179 until taxable years beginning on or after January 1, 2027.^[22] Therefore, Massachusetts taxpayers claiming Code § 179 deductions for federal tax purposes must recalculate such deductions without regard to the amendments made by P.L. 119-21 to Code § 179 when computing their adjusted gross income under G.L. c. 62, § 2, or net income under G.L. c. 63, § 30.4 for taxable years beginning on or after January 1, 2025 but before January 1, 2027.^[23]

D. Modification of Limitation on Business Interest Expense Deduction Under Code § 163(j)

Code § 163(j) limits the business interest expense deduction to the sum of (1) the business interest income of the taxpayer in the taxable year, (2) 30% of the adjusted taxable income of the taxpayer in the taxable year, and (3) the floor plan financing interest of the taxpayer in the taxable year.^[24] Public Law 119-21 amended Code § 163(j) for taxable years beginning on or after January 1, 2025, by modifying the definition of "adjusted taxable income" to mean the taxable income computed without regard to any deduction allowable for depreciation, amortization, or depletion.^[25] Previously, these expenses were only disregarded with respect to taxable years beginning before January 1, 2022. 

Pursuant to the Supplemental Budget, Massachusetts delays conformity to the inclusion of deductions allowed for depreciation, amortization, or depletion in the computation of “adjusted taxable income” under Code § 163(j)(8)(A)(v) until taxable years beginning on or after January 1, 2027. Therefore, Massachusetts taxpayers claiming Code § 163(j) deductions for federal tax purposes must recalculate their Code § 163(j) “adjusted taxable income” and deductions taken accordingly when computing their adjusted gross income under G.L. c. 62, § 2, or net income under G.L. c. 63, § 30.4 for taxable years beginning on or after January 1, 2025, but before January 1, 2027.^[26]

E. Changes to the Tax Treatment of Investments in Qualified Opportunity Zones Under Code § 1400Z-2

Public Law 119-21 permanently renewed and modified the tax benefits of investments in qualified opportunity zones provided by Code § 1400Z-2.^[27] Code § 1400Z-2 provides three tax benefits: (1) deferral of invested capital gain,^[28] (2) partial exclusion of invested capital gain,^[29] and (3) tax-free investment growth.^[30]  Prior to P.L. 119-21, these benefits either had expired or were to set expire, but P.L. 119-21 made these benefits permanent. Public Law 119-21 further established that the partial exclusion of invested capital gain is equal to 10% of the invested capital gain for general opportunity zone investments and 30% of invested capital gain for rural opportunity zone investments, provided that such investments are held for five years. Public Law 119-21 also provided for a rolling 30-year limit for investors to sell their investment and fully exclude the gain from the sale, as well as a basis-step up for investments held beyond that 30-year limit. 

Pursuant to the Supplemental Budget, Massachusetts delays conformity to these amendments made by P.L. 119-21 to Code § 1400Z-2 to taxable years beginning on or after January 1, 2027.^[31] Therefore, Massachusetts corporate excise taxpayers must recalculate their federal Code § 1400Z-2 exclusions using Code § 1400Z-2 without regard to the amendments made by P.L. 119-21 to Code § 1400Z-2 for taxable years beginning in 2025 or 2026.^[32]

For taxable years beginning on or after January 1, 2026, the Supplemental Budget amends the definition of a “Qualified Opportunity Zone” under Code § 1400Z-1 for Massachusetts purposes to include only areas located entirely within the Commonwealth.^[33] Massachusetts income taxpayers and corporate excise taxpayers must add back any exclusions taken for investments made in opportunity zones not located entirely within Massachusetts in taxable years beginning on or after January 1, 2026.

II. Relief from Some Penalties and Interest on Late Payments and Underpayments Made Prior to Enactment of the Supplemental Budget

The Supplemental Budget provides relief to taxpayers who filed 2025 tax returns applying the provisions of P.L. 119-21 prior to the enactment of the Supplemental Budget.^[34] Where such a taxpayer files an amended return in accord with the Supplemental Budget within 90 days of enactment of the Supplemental Budget, no interest or penalties shall be imposed on any underpayment, late payment, or underpaid estimated payment attributable to changes in law made by the Supplemental Budget.^[35] This relief applies to adjustments taxpayers are required to make to their deductions under Code §§ 163(j), 168(n), 174, 174A, and 179, and any exclusions taken under Code § 1400Z-2.^[36]

III. Massachusetts Conformity with Future Code Amendments

Under prior law, Massachusetts conformed to Code amendments to the definitions of gross income and net income for computing Massachusetts corporate excise, as well as specific provisions impacting Massachusetts income tax, which include trade and business expense deductions.^[37] Pursuant to the Supplemental Budget, new Code amendments will not apply to the Massachusetts income tax and Massachusetts corporate excise for any taxable year that begins in the calendar year in which they are enacted or any prior taxable years (but not future years).^[38] An exception to this general rule is provided for amendments that the Commissioner determines will have a revenue impact of less than $20 million, based on a rolling 3-year average adjusted for inflation,^[39] in the fiscal year that begins in the calendar year of enactment, or any fiscal year that precedes the calendar year of enactment.^[40] The Commissioner must estimate and report the revenue impact of each Code amendment within 90 days of enactment.^[41]

IV. New Tax Credit for Farm Food Donations

For taxable years ending on or after December 31, 2026 but before January 1, 2029, the Supplemental Budget creates a new refundable, non-transferable Farm Food Donation Credit for farm businesses subject to tax under G.L. c. 62 or G.L. c. 63 that: (i) donate food, meals, or crops to a nonprofit food distribution organization that provides or sells food at cost, and (ii) have not otherwise claimed a federal or state deduction for the same donations.^[42] The Farm Food Donation Credit is administered by the Department of Revenue (“Department”) and is allowed for the taxable year of the donation(s).^[43] The amount of the credit is equal to the fair market value of the donated items, capped at $5,000 annually.^[44] Donations may include food, meals or crops grown, manufactured, packaged or prepared by the farm business.^[45] The credit is available only if the food, meals or crops are distributed or served by the nonprofit food distribution organization without charge, or at a charge sufficient only to cover the cost of handling such food, meals or crops, and are not (i) used as consideration for services performed or personal property purchased, or (ii) sold at a charge in excess of the organization’s cost of handling the food, meals or crops.^[46] The farm business must secure from the nonprofit food distribution organization a written certification that identifies the nonprofit food distribution organization, the date of the donation, the amount of food, meals or crops donated, and the fair market value of the food, meals or crops donated.^[47] Where the credit exceeds the taxpayer’s tax liability, the Department will treat the excess as an overpayment and pay it to the taxpayer without interest.^[48]

V. New Credit for Sustainable Aviation Fuel

For taxable years beginning on or after January 1, 2026 and ending on or before December 31, 2030, the Supplemental Budget creates a new non-refundable, non-transferable Sustainable Aviation Fuel Credit for taxpayers subject to tax under G.L. c. 62 or G.L. c. 63 that purchase sustainable aviation fuel.^[49],^[50] The Sustainable Aviation Fuel Credit is administered by the Massachusetts Department of Transportation’s Aeronautics Division (the “Division”).^[51] The amount of the credit is the lesser of (i) the amount of jet fuel excise imposed by G.L. c. 64J paid by the taxpayer; and (ii) an amount equal to the number of gallons of sustainable aviation fuel purchased by the taxpayer multiplied by $1.50, as documented on a proof of sustainability document provided by the taxpayer.^[52]  The $1.50 used in the latter computation is increased by $0.015 for each additional 1% reduction in life-cycle greenhouse gas emissions above 50%, provided that the maximum amount of credit per gallon of sustainable aviation fuel cannot exceed $2.00.^[53]  In order to be eligible for the credit, a taxpayer must demonstrate to the Division that it purchased sustainable aviation fuel for an aircraft departing from an airport in Massachusetts.^[54]  

The Sustainable Aviation Fuel Credit may be carried forward for up to five subsequent taxable years.^[55]  The credit may be subject to recapture if, after conducting an investigation, the Division, in consultation with the Department, determines that the taxpayer is in material noncompliance with the credit’s requirements.^[56]  The Division cannot authorize more than $10,000,000 in Sustainable Aviation Fuel Credits for any taxable year.^[57]  Any portion of this $10,000,000 cap that is not authorized by the Division during a fiscal year shall be added to the amount the Division may authorize in subsequent years.^[58]

VI. Changes to Allocations of Paid Family and Medical Leave Contributions

The Supplemental Budget changes the portion of Massachusetts Paid Family and Medical Leave (“PFML”) contributions required from employees and employers.^[59]  Businesses subject to the Massachusetts PFML program are required to withhold PFML contributions from wages paid to employees, up to the annual contribution limit set by the Social Security Administration.^[60]  The PFML program requires separate family and medical leave contributions, which are used respectively to fund paid benefits to individuals taking family or medical leave.^[61] 

Last year, the Internal Revenue Service issued Revenue Ruling 2025-4, which addressed the federal income and employment tax implications of contributions paid to and benefits paid from a state paid family and medical leave program in certain situations. Revenue Ruling 2025-4 determined that family leave benefits are wholly included in the recipient’s federal gross income.  With respect to medical leave benefits, Revenue Ruling 2025-4 determined that such benefits are excluded from the recipient’s federal gross income, except to the extent that the medical leave benefits are attributable to the portion of the medical leave contribution required to be paid by the employer.

Prior to the Supplemental Budget’s changes to the PFML contributions, employers could withhold no more than 40% of the PFML medical leave contribution from wages paid to their employees. Employers with 25 or more employees were required to pay the remaining 60% of the PFML medical leave contribution from their own funds.  Employers could withhold the entirety of the PFML family leave contribution from wages paid to their employees. 

Effective for taxable years beginning on or after January 1, 2026, employers can withhold no more than 40% of the PFML family leave contribution from wages paid to their employees^[62]. Employers with 25 or more employees must pay the remaining 60% of the PFML family leave contribution from their own funds. Employers can withhold the entirety of the PFML medical leave contribution from wages paid to their employees.^[63]

Taxpayers subject to tax under G.L. c. 62 determine their Massachusetts gross income based on their federal gross income.^[64] In accordance with Revenue Ruling 2025-4, the entirety of PFML family leave benefits are included in the recipient’s Massachusetts gross income. Prior to the Supplemental Budget, PFML medical leave benefits were excluded from the recipient’s Massachusetts gross income, except to the extent that such medical leave benefits are attributable to the portion of the medical leave contribution required to be paid by the employer. 

As a result of the Supplemental Budget’s changes to the portion of PFML contributions required from employees and employers, PFML family leave benefits remain fully included in the Massachusetts gross income of the recipient. Because the entirety of the PFML medical leave contribution will be withheld by employers from the wages they pay to their employees, employees who receive PFML medical leave benefits will be able to exclude the full amount of such benefits from their Massachusetts gross income.

VII. Additional Pass-Through Entity Excise

In the Fiscal Year 2022 Budget, Massachusetts enacted an elective pass-through entity excise, which allows eligible pass-through entities (“PTEs”) to make an annual election to pay an excise at the entity level under G.L. c. 63D.^[65] The excise is imposed at a rate of 5% of the PTE’s qualified income.^[66] Qualified income is the part of the PTE’s income that passes through to qualified members and is subject to the Massachusetts income tax at the member level.^[67] Qualified members include individuals who are partners, shareholders, or beneficiaries of the PTE.^[68] Qualified members are allowed an income tax credit for 90% of their pro-rata share of the PTE excise paid by the PTE.^[69]

The Supplemental Budget creates a new PTE excise under G.L. c. 63E, which allows PTEs to make an election to pay an additional 4% excise. The excise applies to the distributive share income that is attributable to members subject to the income tax under G.L. c. 62 which exceeds the surtax threshold pursuant to G.L. c. 62, § 4(d). This additional election may be made for taxable years beginning on or after January 1, 2026.^[70]

VIII. New Sales Tax Exemption for Materials, Tools and Fuel Used in the Development of Multifamily Housing

The Supplemental Budget creates a new sales tax exemption, effective January 1, 2027, for purchases of materials, tools, and fuel, as those terms are defined for the purposes of subsection G.L. c. 64H, § 6(r), which are consumed and used directly and exclusively in the construction of multifamily housing, under specific conditions.^[71] Projects that qualify for this exemption must be approved by the Executive Office of Housing and Livable Communities (“EOHLC”).^[72] The projects must be either located in a census tract where the median household income is less than 120% of average household income, or at least 15% of the units in the project must be classified as affordable, as determined by EOHLC.^[73] 

To claim the exemption, a developer must obtain approval from EOHLC and obtain a certificate stating that it is entitled to the exemption.^[74] The developer must present the certificate to a vendor when purchasing qualifying tangible personal property.^[75] The vendor may rely on the certificate in good faith, and such certificate relieves the vendor of the obligation to collect and remit sales tax on the retail sale.^[76] Both the vendor and the developer must retain records for all purchases for which the developer claims the exemption. The developer must submit its receipts and records for such purchases to EOHLC.^[77]   

EOHLC shall not approve a multifamily housing project for the exemption if the total estimated exemption amount for all outstanding approved multifamily housing projects would likely exceed $35,000,000 for the fiscal year.^[78] Prior to approving a certificate for exemption, EOHLC shall consult with the Department to determine if the exemption afforded to a project will likely result in the cap being exceeded.^[79]   

If construction does not commence within two years of the project’s approval, EOHLC shall revoke the certificate.^[80] EOHLC may also revoke a project’s certificate if it determines: (1) that the developer has used the certificate to claim an exemption for any tangible personal property other than materials, tools or fuel purchased for the construction of the approved multifamily housing project; or (2) the project no longer qualifies as a multifamily housing project.^[81] The Commissioner shall disallow any exemptions obtained through use of the certificate as of the effective date of the revocation.^[82] Upon completion of the approved affordable multifamily housing project, EOHLC shall notify the Department, and the Department shall revoke the certificate.^[83]

Working Draft For Public Comment - 6/23/26

[1] St. 2026, c. 101, signed into law on June 12, 2026.

[2] See Public Law No. 119-21, also known as the “One Big Beautiful Bill Act.”

[3] G.L. c. 63, § 30.3; G.L. c. 63, § 30.4.

[4] G.L. c. 62, § 1.

[5] Id.

[6] P.L. 119-21, § 70302(a).

[7] Id.

[8] Id. at § 70302(b).

[9] Id. at § 70302(f)(2).

[10] Id. at § 70302(f)(1).

[11] Supplemental Budget, § 47.

[12] The Supplemental Budget further provides that if Massachusetts voters enact “25-18 Initiative Petition for a Law Relative to Reducing the State Personal Income Tax Rate from 5% to 4%” (“Initiative Petition 25-18”) on the ballot for the 2026 Statewide election, the Massachusetts income tax and corporate excise will not conform to Code § 174A for taxable years beginning on or after January 1, 2026.  Supplemental Budget, § 47.  However, the Massachusetts Supreme Judicial Court issued a decision on June 18, 2026, holding that Initiative Petition 25-18 is ineligible to appear on the ballot for the 2026 Statewide election.  See Finfer v. Attorney General, 2026 Mass. LEXIS 313, *18.  As a result, the Massachusetts personal income tax and corporate excise will conform to Code § 174A for taxable years beginning on or after January 1, 2026.

[13] P.L. 119-21, § 70307.

[14] Code § 168(n)(2)(A).

[15] Code § 168(n)(2)(B).

[16] Code § 168(n)(1)(B).

[17] Supplemental Budget, § 37(a).

[18] The Supplemental Budget further provides that if Massachusetts voters enact Initiative Petition 25-18 on the ballot for the 2026 Statewide election, the Massachusetts income tax and corporate excise will not conform to Code § 168(n) for taxable years beginning on or after January 1, 2027.  Supplemental Budget, § 37(b).  However, the Massachusetts Supreme Judicial Court issued a decision on June 18, 2026, holding that Initiative Petition 25-18 is ineligible to appear on the ballot for the 2026 Statewide election.  See Finfer v. Attorney General, 2026 Mass. LEXIS 313, *18.  As a result, the Massachusetts personal income tax and corporate excise will conform to Code § 168(n) for taxable years beginning on or after January 1, 2027.

[19] Code § 179.

[20] P.L. 119-21, § 70306.

[21] Code § 179(b)(6)(A)(ii).

[22] Supplemental Budget, § 37(a).

[23] The Supplemental Budget further provides that if Massachusetts voters enact Initiative Petition 25-18 on the ballot for the 2026 Statewide election, the Massachusetts income tax and corporate excise will not conform to the Act’s amendments made to Code § 179 for taxable years beginning on or after January 1, 2027.  Supplemental Budget, § 37(b).  However, the Massachusetts Supreme Judicial Court issued a decision on June 18, 2026, holding that Initiative Petition 25-18 is ineligible to appear on the ballot for the 2026 Statewide election.  See Finfer v. Attorney General, 2026 Mass. LEXIS 313, *18.  As a result, the Massachusetts personal income tax and corporate excise will conform to the Act’s amendments made to Code § 179 for taxable years beginning on or after January 1, 2027.

[24] Code § 163(j)(1)(A).

[25] P.L. 119-21, § 70303(a); Code § 163(j)(8)(A)(v).

[26] The Supplemental Budget further provides that if Massachusetts voters enact Initiative Petition 25-18 on the ballot for the 2026 Statewide election, the Massachusetts income tax and corporate excise will not conform to the Act’s amendments to the definition of adjusted taxable income under Code § 163(j) for taxable years beginning on or after January 1, 2027.  Supplemental Budget, § 37(b).  However, the Massachusetts Supreme Judicial Court issued a decision on June 18, 2026, holding that Initiative Petition 25-18 is ineligible to appear on the ballot for the 2026 Statewide election.  See Finfer v. Attorney General, 2026 Mass. LEXIS 313, *18.  As a result, the Massachusetts personal income tax and corporate excise will conform to the Act’s amendments to the definition of adjusted taxable income under Code § 163(j) for taxable years beginning on or after January 1, 2027.

[27] P.L. 119-21, § 70421.

[28] Code §§ 1400Z-2(a) and (b)(1).

[29] Code § 1400Z-2(b)(2).

[30] Code § 1400Z-2(c).

[31] Supplemental Budget, § 39(a).

[32] The Supplemental Budget further provides that if Massachusetts voters enact Initiative Petition 25-18 on the ballot for the 2026 Statewide election, the Massachusetts corporate excise will not conform to the Act’s amendments to Code § 1400Z-2 for taxable years beginning on or after January 1, 2027.  Supplemental Budget, § 39(b).  However, the Massachusetts Supreme Judicial Court issued a decision on June 18, 2026, holding that Initiative Petition 25-18 is ineligible to appear on the ballot for the 2026 Statewide election.  See Finfer v. Attorney General, 2026 Mass. LEXIS 313, *18.  As a result, the Massachusetts corporate excise will conform to the Act’s amendments to Code § 1400Z-2 for taxable years beginning on or after January 1, 2027.

[33] Supplemental Budget, §§ 7, 14, and 45.

[34] Supplemental Budget, § 38.

[35] Id.

[36] Id.

[37] G.L. c. 63, § 30.3; G.L. c. 63, § 30.4; G.L. c. 62, § 1(c).

[38] Supplemental Budget, §§ 13 and 45. 

[39] Adjustments for inflation will be calculated by applying Code § 1(f).

[40] Supplemental Budget, § 13(c).

[41] Supplemental Budget, § 13(d).

[42]  Supplemental Budget, §§ 10 and 18.

[43] Id.

[44] Id.

[45] Id.

[46] Id.

[47] Id.

[48] Id.

[49] Supplemental Budget, §§ 10, 12, 18, 20, and 51. 

[50] Sustainable aviation fuel is liquid fuel that: (i) consists of synthesized hydrocarbons and: (A) meets the requirements of the ASTM International Standard D7566; and (B) when blended with fossil fuel meets the provisions of ASTM International Standard D1655; (ii) is derived from biomass resources, waste streams, renewable energy sources or gaseous carbon oxides; (iii) is not derived from any palm derivatives; and (iv) for the fuel production pathway for the sustainable aviation fuel, achieves at least a 50 per cent lifecycle greenhouse gas emissions reduction in comparison with petroleum-based jet fuel, as determined by a test that shows: (1) that the fuel production pathway achieves at least a 50 per cent reduction in GHG emissions intensity relative to fossil jet fuel considering the attributional core lifecycle emissions and the induced land use change values as determined through the lifecycle methodology for sustainable aviation fuels adopted by the ICAO with the agreement of the United States; or (2) that the fuel production pathway achieves at least a 50 per cent reduction in GHG emissions intensity relative to fossil jet fuel considering the attributional core lifecycle emissions and the induced land use change values as determined through the most recent version of Argonne National Laboratory’s GREET model, inclusive of agricultural practices and carbon capture and sequestration.  G.L. c. 62, § 6(kk)(a); G.L. c. 63, § 38WW(a).

[51] G.L. c. 62, § 6(kk)(c)(1); G.L. c. 63, § 38WW(c)(1).

[52] G.L. c. 62, § 6(kk)(b)(1); G.L. c. 63, § 38WW(b)(1). 

[53] G.L. c. 62, § 6(kk)(b)(2); G.L. c. 63, § 38WW(b)(2).

[54] G.L. c. 62, § 6(kk)(c)(1); G.L. c. 63, § 38WW(c)(1).

[55] Id.

[56] Id. 

[57] G.L. c. 62, § 6(kk)(c)(2); G.L. c. 63, § 38WW(c)(2).

[58] Id.

[59] Supplemental Budget, §§ 25 and 26. 

[60] G.L. c. 175M, § 6(a), (f).

[61] G.L. c. 175M, §§ 2, 6(c)-(e).

[62] Supplemental Budget, § 25. 

[63] Supplemental Budget, § 25. 

[64] G.L. c. 62, §§ 1(d), 2(a).

[65] G.L. c. 63D; TIR 22-6.

[66] G.L. c. 63D, § 2.

[67] G.L. c. 63D, § 1.

[68] Id.

[69] G.L. c. 63D, § 2.

[70] Supplemental Budget, §§ 21 and 45.

[71] G.L. c. 64H, § 6(aaa); Supplemental Budget, §§ 22, 42, and 49.

[72] G.L. c. 64H, § 6(aaa)(2).

[73] G.L. c. 64H, § 6(aaa)(1).

[74] G.L. c. 64H, § 6(aaa)(4).

[75] Id.

[76] Id.

[77] Id.

[78] G.L. c. 64H, § 6(aaa)(3).

[79] Id.

[80] G.L. c. 64H, § 6(aaa)(5).

[81] G.L. c. 64H, § 6(aaa)(6).

[82] Id.

[83] G.L. c. 64H, § 6(aaa)(7).