WeVote
Log In

Bill

Bill

SD 2221

An Act closing a corporate tax haven loophole

194th Legislature (2025-2026) Introduced by Mark Montigny

Massachusetts bill closes corporate tax loophole to increase state revenue from businesses using specific tax avoidance structures or practices.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 2221

Legislative bill overview

SD 2221 aims to close what sponsors identify as a corporate tax avoidance loophole in Massachusetts tax law. The bill targets specific corporate structures or practices that currently allow businesses to reduce their state tax obligations. By eliminating this loophole, the legislation would increase corporate tax revenue for the state.

Why is this important

Massachusetts faces ongoing budget pressures, and closing tax loopholes could generate significant revenue without raising tax rates. This affects both state spending capacity and the distribution of tax burden between corporations and individual taxpayers. The practical impact depends on how many businesses currently exploit this loophole and their revenue scale.

Potential points of contention

  • Business competitiveness concerns: Critics may argue that closing the loophole could discourage business investment in Massachusetts or prompt relocation to more tax-friendly states
  • Definitional clarity: The bill's effectiveness depends on precise statutory language; overly broad language could have unintended consequences on legitimate business structures
  • Revenue estimates uncertainty: Without knowing the loophole's scope, projections of recovered revenue may be speculative, making budget planning difficult

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.