AIM’s tax advocacy makes Massachusetts as competitive as possible by eliminating outliers in the tax code and promoting policies that incentivize growth and investment.
Policy Watch
Interest Expense Deductibility
Decouple the state’s tax code from the interest expense deductibility limitations under IRC §163(j), which was created under the federal Tax Cuts and Jobs Act (TCJA). Decoupling would incentivize businesses to invest in the state.
Cut the Short-Term Capital Gains Tax
The Massachusetts short term capital gains tax rate is 8.5% which is one of the highest in the country. AIM supports a modest reform of cutting the rate to 5%.
Exempt ‘Rolling Stock’
AIM seeks to exempt rolling stock (trucks, trailers, railcars, and most things involved in interstate commerce) in Massachusetts from the state’s sales tax. State policy currently dictates that rolling stock entering Massachusetts for more than six days will be subject to the state’s full 6.25% use tax regardless of where the property was actually purchased. Massachusetts is the only state in New England to tax rolling stock.
Reform the ‘Sting Tax’
AIM seeks to reform the tiered income tax imposed on sub-chapter S. corporations.
Equalize Department of Revenue Interest Rates
Equalize the current short-term interest rate on money owed by a taxpayer to the Massachusetts Department of Revenue (DOR) from a high of 4 percent compounded daily to a rate of 2 percent simple interest – the current rate paid by the DOR to a taxpayer when the taxpayer is due a refund or has overpaid.
Clarify the Net-Worth Calculation
Clarify current law on the manner in which the Massachusetts Department of Revenue determines debt or equity when auditing a corporation’s financial transactions to determine the net-worth tax of a corporation.
Tax Credits for Manufacturing Skills Training
Provide a 50 percent tax credit to companies for eligible expenses for employees who achieve successful certification through the Massachusetts Manufacturing Advancement Center Workforce Innovation Collaborative’s (MACWIC) Applied Manufacturing Technology Pathway Certification Program. Employees must be full-time and employed in the Commonwealth.
Eliminate Contingent Fee Auditors
Prevent any state agency from hiring contingent fee auditors for any purpose related to Massachusetts taxation.