| TAX EXPENDITURE | FY2009 | FY2010 | FY2011 |
|---|---|---|---|
| Deductions from Gross Income | 181.3 | 180.4 | 178.7 |
| item | description | amount |
|---|---|---|
| Deductions from Gross Income | 178.7 | |
| 2.201 |
Charitable Deduction
In computing net income, corporations may deduct charitable donations up to 10% of taxable income computed without the deductions. There is a carryover of excess contributions available for five succeeding taxable years. Origin: IRC S. 170 Estimate: $88.2 |
88.2 |
| 2.203 |
Net Operating Loss Carry-Over
Taxpayers may carry-over for no more than five years (but not carry back) net operating losses (NOL) as defined under section 172 of the Internal Revenue Code. Origin: IRC S. 172 and M.G.L. c. 63, S. 30 (b) and (ii) Estimate: $90.4 |
90.4 |
| 2.204 |
Excess Natural Resource Depletion Allowance
Taxpayers in extractive industries (mining or drilling for natural resources) may deduct a percentage of gross mining income as a depletion allowance ("percentage depletion") even if the cost basis of the property has been reduced to zero. The deduction may not exceed 50% (in some cases, 65%) of net income from the property. In the case of oil and gas, percentage depletion is available only to domestic oil and gas sold by "independent producers" (nonintegrated companies). The excess of the deduction available using the percentage of gross income method of depletion over a depletion deduction based on cost is a tax expenditure. Origin: IRC S. 613 and 613A Estimate: Negligible |
Negligible |
| 2.205 |
Deduction for Certain Dividends of Cooperatives
Farmers' cooperatives and certain corporations acting as cooperatives may deduct patronage dividends and other amounts from gross income. Cooperatives meeting certain requirements may deduct dividends on capital stock and certain payments to patrons such as investment income. Under generally accepted rules for taxing corporations, the corporation cannot deduct dividends paid to shareholders. Origin: IRC S. 1381-1388 Estimate: N.A. |
N.A. |
| 2.206 |
Abandoned Building Renovation Deduction
Businesses renovating eligible buildings in Economic Opportunity Areas may deduct 10% of the cost of renovation from gross income. This deduction may be in addition to any other deduction for which the cost of renovation may qualify. To be eligible for this deduction, renovation costs must relate to buildings designated as abandoned by the Economic Assistance Coordinating Council. Origin: M.G.L. c. 63, S. 38O Estimate: $0.1 |
0.1 |
| ORIGIN | |
| IRC | Federal Internal Revenue Code (26 U.S.C.) |
|---|---|
| M.G.L. | Massachusetts General Laws |
| U.S.C | United States Code |
| ESTIMATES | All estimates are in $ millions. |