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Transparency of Tax Credit Results

SECTION 12.   (A) Section 1 of chapter 62C of the General Laws, as so appearing, is hereby amended by inserting before the definition of "Building contractor" the following 2 definitions:-
          "Administering agency head", the agency head responsible for administering the applicable state tax credit program.
          "Average salary", the total Massachusetts gross salary of a group of Massachusetts employees divided by the number of Massachusetts employees in the group.

(B) Said section 1 of chapter 62C, as so appearing, is hereby further amended by inserting after the definition of "Commissioner" the following definition:-
          "Full-time employee", a person employed in the commonwealth for 35 hours or more per week.

(C) Said section 1 of chapter 62C, as so appearing, is hereby further amended by inserting after the definition of "Materialman" the following definition:-
          "Part-time employee", a person employed in the commonwealth.

(D) Said section 1 of chapter 62C, as so appearing, is hereby further amended by inserting after the definition of "Show" the following definition:-
          "Tax credit program", one of the following credits against the state income tax to stimulate economic development and other policy goals: the brownfields tax credit in section 38Q of chapter 63 and subsection (j) of section 6 of chapter 62; the dairy farmer tax credit in section 38Z of chapter 63 and subsection (o) of section 6 of chapter 62; the FDA user fees credit in section 31M of chapter 63 and subsection (n) of section 6 of chapter 62; the film tax credit in subsection (b) of section 38X of chapter 63 and subsection (l) of section 6 of chapter 62; the historic rehabilitation tax credit in section 38R of chapter 63 and section 6J of chapter 62; the life sciences investment tax credit in section 38U of chapter 63 and subsection (m) of section 6 of chapter 62; the low-income housing tax credit in section 31H of chapter 63 and section 6I of chapter 62; the medical device tax credit in section 31L of chapter 63 and section 6 1/2 of chapter 62; and the refundable research credit in subsection (j) of section 38M of chapter 63.

(E) Subsection (b) of section 21 of said chapter 62C, as so appearing, is hereby amended by adding the following clause:-
          (24) the disclosure of information necessary to comply with the reporting requirements of section 88.

(F) Said chapter 62C is hereby further amended by adding the following section:-
          Section 88. (a)(1) On or before March 1 of every year, the administering agency head of each tax credit program shall submit a report to the commissioner on each tax credit program authorized for the previous calendar year, in this section called the report, which shall be a public record.
          (2) The report shall contain the following information:
          (i) the identity of each taxpayer authorized by the administering agency head to receive a tax credit;
          (ii) the amount of tax credit award and issued tax credit for each taxpayer and each project, if applicable; and
          (iii) the date of the tax credit award or issued tax credit for each taxpayer and each project.
          (3) The report shall contain an analysis of the impact of the tax credit on preserving and promoting the relevant industry in the commonwealth and employment in the relevant industry, including but not limited to, an analysis of the relevant industry's output, where applicable, and employment retained or increased in the relevant industry in the commonwealth for the calendar year, and other benefits relevant to the specific goals of the tax credit program, and other information that the commissioner may require.
          (4) The report shall additionally include the following information relevant to the following specific tax credit programs:
          (i) for the brownfields tax credit, an analysis of the impact of the brownfields tax credit program on the cleanup and development of contaminated properties:
          (ii) for the dairy farmer tax credit, an analysis of the impact of the dairy farmer tax credit on preserving dairy farms and dairy farm employment in the commonwealth, including but not limited to an analysis of the dairy product output, and the number, size in acreage and location of diary farms receiving a dairy farm credit;
          (iii) for the FDA user fees credit, life sciences investment tax credit, and the refundable research credit, an analysis of the impact of the program on preserving and increasing economic development and infrastructure in the commonwealth for the calendar year;
          (iv) for the film tax credit, an analysis of the impact of the film tax credit program on preserving or increasing film industry jobs in the commonwealth and other benefits of the program;
          (v) for the historic rehabilitation tax credit, an analysis of the impact of the program on preserving historic structures in the commonwealth and other benefits of the program, including but not limited to the employment created for the calendar year;
          (vi) for the low-income housing tax credit, an analysis of the impact of the program on preserving or increasing low-income housing in the commonwealth and other benefits of the program, including but not limited to, the number of low-income housing units placed in service for the calendar year; and
          (vii) for the medical device tax credit, an analysis of the impact of the medical device tax credit program on preserving or increasing medical device industry jobs in the commonwealth and other benefits of the program.
          (b)(1) On or before February 15 of every year, each taxpayer receiving an authorized tax credit from the administering agency head in the previous calendar year shall submit a statement of jobs to, on a form provided by, the administering agency head containing the following information:
          (i) the number of full-time employees working for the taxpayer on the date the administering agency head authorized the tax credit;
          (ii) the average salary of the full-time employees identified in clause (i) of paragraph (2) of subsection (a);
          (iii) the number of part-time employees, identifying the part-time employees as either equal to or less than 20 hours per week employees or less than 35 hours but more than 20 hours per week employees, working for the taxpayer on the date the administering agency head authorized the tax credit and the number of part-time employees, identifying the part-time employees as either equal to or less than 20 hours per week employees or less than 35 hours but more than 20 hours per week employees, working for the taxpayer on December 31 of the calendar year the administering agency head authorized the tax credit, related to the taxpayer's project identified in clause (i) of paragraph (2) of subsection (a);
          (iv) the average salary of the equal to or less than 20 hours per week employees and the average salary of the less than 35 hours but more than 20 hours per week employees identified in clause (iii);
          (v) the number or full-time employees working for the taxpayer on the date the administering agency head authorized the tax credit and the number of full-time employees working for the taxpayer on December 31 of the calendar year the administering agency head authorized the tax credit;
          (vi) the average salary of the full-time employees identified in clause (v);
          (vii) the average salary of the equal to or less than 20 hours per week employees and the average salary of the less than 35 hours but more than 20 hours per week employees identified in clause (iii): and
          (viii) other information required by the administering agency head, to assist the agency head in assessing the impact of the tax credit program on the commonwealth and employment in the relevant industry, and otherwise in meeting the goals of the relevant tax credit program.
          (2) On or before March 1 of every year, the administering agency head shall submit to the commissioner, in a form prescribed by the commissioner, copies of the taxpayer job statements required by paragraph (1), with the report required by subsection (a). The commissioner shall provide this information on a government internet website for public disclosure.
 
 

Summary:
This section requires public disclosure of the results of refundable or transferable tax credit programs, including the number of jobs created, by taxpayers who receive the credits and by state agencies that administer the programs.