Bill Text: MA H2789 | 2009-2010 | 186th General Court | Introduced
Bill Title: Provide tax incentives to certain small businesses
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2009-01-20 - Public Hearing date 7/8 at 10:00 AM in Hearing Room B2 [H2789 Detail]
Download: Massachusetts-2009-H2789-Introduced.html
The Commonwealth of Massachusetts
_______________
PRESENTED BY:
Bradley H. Jones, Jr.
_______________
To the
Honorable Senate and House of Representatives of the Commonwealth of
Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the passage of the accompanying bill:
An Act Relative to Stimulating the Economy Through Job Creation.
_______________
PETITION OF:
|
Name: |
District/Address: |
|
Viriato Manuel deMacedo |
1st Plymouth |
|
Bradley H. Jones, Jr. |
20th Middlesex |
|
George N. Peterson, Jr. |
9th Worcester |
|
Elizabeth Poirier |
14th Bristol |
|
F. Jay Barrows |
1st Bristol |
|
Paul K. Frost |
7th Worcester |
|
Susan Williams Gifford |
2nd Plymouth |
|
Bradford R. Hill |
4th Essex |
|
Elizabeth Poirier |
14th Bristol |
|
Richard J. Ross |
9th Norfolk |
|
Todd M. Smola |
1st Hampden |
|
Robert S. Hargraves |
1st Middlesex |
|
Daniel K. Webster |
6th Plymouth |
The Commonwealth of Massachusetts
_______________
In the Year Two Thousand and Nine
_______________
An Act Relative to Stimulating the Economy Through Job Creation.
Be
it enacted by the Senate and House of Representatives in General Court
assembled, and by the authority of the same, as follows:
SECTION 1: Section 31M of chapter 63 of the General Laws, as
appearing in the 2006 Official Edition, is hereby amended by adding, at the end
thereof, the following new section: -
Section 31N: For the purposes of this section, the following words shall have
the following meanings: -
“Application year”, the calendar year for which a qualifying small business
submits the information required for a determination as to a jobs incentive
payment.
“Commissioner”, the commissioner of revenue.
“Eligible jobs”, a number determined by first multiplying each of the local
jobs created by a small business during a single calendar year by the job
qualifier for that job, and then totaling the number for all the local jobs
created.
“Full time employee”, a person who is employed for consideration for at least
35 hours per week and whose salary is subject to withholding as provided in
chapter 62B.
“Job qualifier fraction”, in the case of either a full-time employee or a
part-time employee of a small business, the figure that determines the extent
to which that employee is employed in the commonwealth during a single calendar
year. The job qualifier fraction for each employer shall be determined by
multiplying the following percentages together: (i) the percentage of time that
an employee worked while employed by the company expressed as average hours
worked per week out of 35 hours, not to exceed 100 per cent; (ii) that
employee’s time attributable to work in the commonwealth, as a portion of that
employee’s total work for the company; and (iii) the portion of the year the employee
worked for the company.
“Local jobs created”, the total number of direct jobs created by a small
business during a single calendar year in which the new employees perform their
duties in at least 1 in-state location, including jobs performed by persons
that are transferred within the company to work at an in-state location from a
location based outside the state.
“Part-time employee”, a person who is employed for consideration for less than
35 hours a week and whose salary is subject to withholding as provided in
chapter 62B.
“Payment years”, in the case of a small business that is determined to be
eligible for a jobs incentive payment, the 3 calendar years following the
application year.
“Small business”, a business that had total annual sales in its most recently
completed fiscal year of less than five million dollars, or has less than 100
employees, and has a principal place of business in the commonwealth.
“Small business jobs incentive payment”, a business employment incentive
payment for qualifying small businesses as provided for in this section.
“Weighted average employment”, for a calendar year, the total number of jobs
maintained by a small business in which the employees performed employment
services at least 1 in-state location. The number is to be determined by first
multiplying each of the individual jobs maintained by the company for that year
by the job qualifier fraction for that job and then totaling the number for all
of these jobs.
(b) A small business that creates 5 or more eligible jobs in the commonwealth
during a single calendar year shall be entitled to a small business jobs
incentive payment if its weighted average employment for such year reflects a
net increase of at least 5 jobs over the company’s weighted average employment
for the previous calendar year. The jobs incentive payment shall be equal to 25
per cent of the amount paid by the company as salary attributable to eligible
jobs created by the company in such year to the extent that the salary was
subject to Massachusetts withholding pursuant to chapter 62B for such year,
multiple by the applicable Massachusetts income tax rate for such salary.
For the purposes of this provision, an eligible job shall be deemed created in
the commonwealth on the first day for which Massachusetts withholding is
required in connection with the compensation paid to the employee.
(c) The small business jobs incentive payment shall be paid to the small
business in 3 equal installments in each of the three calendar years commencing
with the calendar year subsequent to the application year. If, for the first or
second payment year, the company’s weighted average employment falls below its
weighted average for the application year, the company shall be disqualified
from receiving its second installment payment. It may still receive its
third installment payment if its weighted average employment for its second
payment year is above its weighted average employment for its application year
(d) A small business that seeks a small business jobs incentive payment shall
apply to the commissioner to receive such payment on a form to be prescribed by
the commissioner. This form shall reference the necessary information
concerning the eligible jobs created by the company in the commonwealth during
the application year and also the company’s weighted average employment for
such year and the previous calendar year. The commissioner shall advise
the company of his determination in writing.
(e) Not later than March 1 of each calendar year for which a small business has
been approved to receive a small business jobs incentive payment, the company
shall submit to the commissioner, in a form prescribed by the commissioner, the
information necessary to evaluate the company’s previous year weighted
employment average.
(f) A small business that has previously been approved to receive a small
business jobs incentive payment is entitled to re-apply for an additional
payment for a second or third application year. In such cases, the
company may be entitled to receive a small business jobs incentive payment that
relates to a different application in the same calendar year. When a company
had previously been granted a jobs incentive payment for 3 application years,
it shall not request an additional small business jobs incentive payment.
(g) The commissioner shall issue payments, as authorized in subsection (b),
without further appropriation. The commissioner may issue rules and
regulations as necessary or helpful to implement this section, including rules
and regulations to ensure compliance with this section.
SECTION 2: This act shall be effective as to small business jobs incentive
payment requests made by small businesses for calendar years 2009 to 2013,
inclusive.
