This bill aims to address the financial implications of recent federal tax law changes on Massachusetts' finances and includes several amendments to existing tax laws. Key provisions include the amendment of chapter 62 to clarify the definition of "qualified opportunity zone" and the introduction of new deductions related to federal tax law. Specifically, the bill increases the deduction limit in chapter 62B from $1,200 to $2,000, adjusted for inflation, and establishes a new chapter (63E) that allows eligible pass-through entities to elect to pay a 4% excise tax on their qualified income taxable in Massachusetts, with provisions for refundable credits for qualified members.

Additionally, the bill disallows certain deductions for taxable years beginning in 2025 and 2026, including those related to sections 174A, 168(n), 179, and 163(j) of the Internal Revenue Code. It also specifies that certain amendments to the Internal Revenue Code will not apply to Massachusetts tax calculations for specific taxable years unless the revenue impact is below a certain threshold. The bill is declared an emergency law to ensure its immediate implementation for the preservation of public convenience.

Statutes affected:
Bill Text: 62-1, 63-30