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Mass. bill would exempt newly incorporated manufacturers from income tax for five years
Summary
A bill filed Jan. 17 in the Massachusetts House would insert a new Section 38OO into Chapter 63 to exempt newly incorporated manufacturing corporations from state income tax for their first five years if at least half their manufactured-goods revenue comes from consumer goods.
A bill filed in the Massachusetts House on Jan. 17 would grant a five-year state income tax exemption to new manufacturing corporations that incorporate in Massachusetts, provided at least half of their manufactured-goods revenue comes from sales of consumer goods.
Representative Michael J. Soter of Bellingham presented the petition, which lists Representative Joseph D. McKenna (18th Worcester) as an additional signer. The filing appears as House No. 3248 and is recorded on House docket No. 4099; the cover lists the referral area as Revenue.
The bill would add a new SECTION 38OO to Chapter 63 of the General Laws. Under the proposed language, a manufacturing corporation, as defined in section 42B of Chapter 63, "shall not be subject to taxation of income, as defined under this chapter, for income generated during its first five years of operation," if "no less than 50 per cent of the corporation’s revenues from manufactured goods derive from the sale of consumer goods." The bill defines "consumer goods" as "tangible property intended to be purchased by individuals for personal use." The draft also references that Chapter 63 was "most recently amended by section 7 of chapter 88 of the acts of 2024."
Key provisions in the filing: - Eligibility trigger: the exemption applies "upon incorporating in the commonwealth," so it targets corporations that form (incorporate) in Massachusetts. - Duration: the exemption would apply for the first five years of operation. - Revenue test: at least 50% of revenues from manufactured goods must come from sales of consumer goods, which the bill defines as tangible property for personal use.
The filing itself does not include legislative analysis, estimated fiscal effects, or statements from the sponsors explaining policy goals. The document shows the petition was filed with the House and assigned to the Revenue committee for consideration; no committee action, floor votes, or enactment is recorded in the filing.
Next steps for the bill, per standard procedure, would include committee referral, possible public hearings, committee reports, and any subsequent floor votes; none of those steps are recorded in the filing.
