On April 10, the Massachusetts House of Representatives passed a corporate tax bill which coupled a rate cut with several policy changes.  The issue now goes to the state Senate, where the Chamber will continue to work for tax legislation that strengthens employers' ability to compete and grow in Massachusetts.
 
The Chamber has been a consistent advocate for lower Massachusetts corporate tax rates; the current rate of 9.5% is the fourth-highest in the country.  The House bill lowers that rate to 8.75% in 2009, and makes further reductions to 7.5% if revenue growth thresholds are met.  A provision was also added which will lower the corporate income tax burden on financial services institutions by cutting their rate from 10.5% to 9.0%. 
 
The House bill also includes combined reporting and federal conformity ("check the box") tax policy changes.  The original version of the bill gave wide discretion to the Department of Revenue (DOR) in administering these changes to the corporate tax code, but the final bill includes important limits on such discretion.  The Chamber and other business groups strongly advocated for these limits, as they are critical to establishing a clear, predictable, litigation-minimizing tax process for Massachusetts businesses. 
 
The Chamber will continue to work hard for a bill which includes a significant rate cut and limits on DOR discretion.  In this time of economic uncertainty, a competitive tax climate is especially important to employers as you work to grow and create jobs here in Massachusetts.