AIM supports policies that make Massachusetts competitive by eliminating outliers in the tax code and promoting policies that incentivize growth and investment.
Massachusetts is one of the most expensive states in the country to operate a business and the state’s uncompetitive tax code is a significant factor. AIM supports reducing the tax burden on both companies and individuals so that the state can retain talented workers and attract investment.
AIM advocates for responsible state spending by encouraging policymakers to live within their means when crafting the annual budget. Measured and sustainable spending will eliminate the need for tax increases and free up resources to invest in the economy.
Policy Priorities
Global Intangible Limited Tax Income
Oppose House Bill 3110/Senate Bill 2033, which seeks to change the state tax treatment of Global Intangible Limited Tax Income (GILTI). The GILTI tax applies to U.S. companies that own more than 50 percent of a foreign corporation. It aims at income earned from “intangible assets” such as copyrights, patents, licenses, trademarks, and other intellectual property.
Business Groups Oppose Massive, Unprecedented and Misguided Tax Increase
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) and amended again in 2025. 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 how 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.