By Mr. Tarr, a petition (accompanied by bill, Senate, No. 2091) of Bruce E. Tarr for legislation to allow for the deduction of business interest. Revenue.
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Date
Branch
Action
7/23/2026
House
7/23/2026 HouseAccompanied a study order, see H5596↗
4/1/2026
Senate
4/1/2026 SenateReporting date extended to Thursday June 25, 2026
10/3/2025
Joint
10/3/2025 JointHearing rescheduled to 10/03/2025 from 10:00 AM-12:35 PM in Gardner Auditorium — Hearing updated to New End Time
9/24/2025
Joint
9/24/2025 JointHearing scheduled for 10/03/2025 from 10:00 AM-05:00 PM in Gardner Auditorium
2/27/2025
House
2/27/2025 HouseHouse concurred
2/27/2025
Senate
2/27/2025 SenateReferred to the committee on Revenue
An Act allowing for the deduction of business interest
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4 section(s) · formatted for easier reading
▸SECTION 1
Section 1 of chapter 62 of the General Laws is hereby amended by striking out subsection (c) and inserting in place thereof the following subsection: -
(c) “Code”, the Internal Revenue Code of the United States, as amended on January 1, 2005 and in effect for the taxable year; but Code shall mean the Code as amended and in effect for the taxable year for sections 62(a)(1), 72, 105, 106, 139C, 223, 274(m), 274(n), 401 through 420, inclusive, 457, 529, 529A, 530, 951, 951A, 959, 961, 3401 and 3405 but excluding sections 402A and 408(q), and provided further that for purposes of determining the amount of business interest deductible under this chapter, the provisions of section 163(j) of the Code shall not apply.
▸SECTION 2
Section 1 of chapter 63 of the General Laws is hereby amended by striking out the definition of “Code” therein and inserting in place thereof the following definition: -
“Code”, the Internal Revenue Code of the United States, as amended and in effect for the taxable year, unless otherwise provided; for sections 163(j), 381(c)(20), 382(d)(3) and 382(k)(1), Code shall mean the Code as amended and in effect for tax years beginning before January 1, 2018.
▸SECTION 3
Section 30 of said chapter 63 is hereby amended by striking out the first sentence of paragraph 4 and inserting in place thereof the following sentence: -
“Net income”, gross income less the deductions, but not credits, allowable under the provisions of the Federal Internal Revenue Code, as amended and in effect for the taxable year; provided, however, that for sections 163(j), 381(c)(20), 382(d)(3) and 382(k)(1), Code shall mean the Code as amended and in effect for tax years beginning before January 1, 2018, and provided further that any deduction otherwise allowable which is allocable, in whole or in part, to one or more classes of income not included in a corporation’s taxable net income, as determined under subsection (a) of section 38, shall not be allowed.
▸SECTION 4
This act shall be effective for taxable years beginning after December 31, 2017.
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SECTION 1. Section 1 of chapter 62 of the General Laws is hereby amended by striking out subsection (c) and inserting in place thereof the following subsection: -
(c) “Code”, the Internal Revenue Code of the United States, as amended on January 1, 2005 and in effect for the taxable year; but Code shall mean the Code as amended and in effect for the taxable year for sections 62(a)(1), 72, 105, 106, 139C, 223, 274(m), 274(n), 401 through 420, inclusive, 457, 529, 529A, 530, 951, 951A, 959, 961, 3401 and 3405 but excluding sections 402A and 408(q), and provided further that for purposes of determining the amount of business interest deductible under this chapter, the provisions of section 163(j) of the Code shall not apply.
SECTION 2. Section 1 of chapter 63 of the General Laws is hereby amended by striking out the definition of “Code” therein and inserting in place thereof the following definition: -
“Code”, the Internal Revenue Code of the United States, as amended and in effect for the taxable year, unless otherwise provided; for sections 163(j), 381(c)(20), 382(d)(3) and 382(k)(1), Code shall mean the Code as amended and in effect for tax years beginning before January 1, 2018.
SECTION 3. Section 30 of said chapter 63 is hereby amended by striking out the first sentence of paragraph 4 and inserting in place thereof the following sentence: -
“Net income”, gross income less the deductions, but not credits, allowable under the provisions of the Federal Internal Revenue Code, as amended and in effect for the taxable year; provided, however, that for sections 163(j), 381(c)(20), 382(d)(3) and 382(k)(1), Code shall mean the Code as amended and in effect for tax years beginning before January 1, 2018, and provided further that any deduction otherwise allowable which is allocable, in whole or in part, to one or more classes of income not included in a corporation’s taxable net income, as determined under subsection (a) of section 38, shall not be allowed.
SECTION 4. This act shall be effective for taxable years beginning after December 31, 2017.