MA S2041

Amends Section 32B of Chapter 63 of Massachusetts General Laws to exclude from water's-edge combined reporting any corporate member incorporated in 36 designated tax haven jurisdictions, including the Bahamas, Bermuda, Cayman Islands, Luxembourg, Switzerland, Singapore, and Hong Kong

Requires the commissioner to submit biannual public reports to the Legislature recommending additions or removals from the tax haven jurisdiction list

Defines a tax haven as a jurisdiction with no or nominal effective tax that meets at least two of three criteria: disproportionate income reported relative to property/payroll/sales; laws encouraging income shifting; or recognition by experts as a corporate tax haven

Authorizes the commissioner to require corporations making water's-edge elections to submit domestic disclosure spreadsheets within 6 months of federal filing, detailing income reported to each state, tax liability, apportionment methods, and affiliated corporations

Similar legislation was filed in the previous 2023-2024 session as Senate No. 1880