Entity Exempt from Taxation

Fiscal Year 2019 Resource Summary (in Millions)
TAX EXPENDITURE	FY2015	FY2016	FY2017	FY2018	FY2019
Entity Exempt from Taxation	5.5	6.1	6.2	5.7	5.7

item	description	amount
Entity Exempt from Taxation		5.7
2.701	Exemption of Credit Union Income Credit unions, which are in effect mutual business organizations, are considered tax-exempt organizations for federal income tax purposes and therefore are generally exempt from the corporate excise, except are taxable on unrelated business income. Comment: The estimate applies to only state-chartered credit unions. Origin: IRC, §501(c)(14)(A); M.G.L. c. 63, § 30 Estimate: $5.7	5.7
2.702	Tax-Exempt Organizations Corporations considered to be tax-exempt under section 501 of the Internal Revenue Code (such as religious, scientific or educational organizations) are taxable under the corporate excise only on their unrelated business taxable income as defined in section 512 of the Code. They are not taxable on other income and are not subject to the non-income measure or on the minimum excise. This non-taxation creates a tax expenditure. Origin: IRC, § 501; M.G.L. c. 63, § 30 Estimate: N.A.	N.A.
2.703	Exemption for Regulated Investment Companies Regulated Investment Companies are exempt from the corporate excise. This item constitutes a tax expenditure in Massachusetts, though it is not considered a tax expenditure at the federal level. Origin: M.G.L. c. 63, § 68C(8) Estimate: N.A.	N.A.

Key:

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.