Origin: Certain gains derived from sales of C corporation stock that is qualified small business stock (QSBS) are excluded from income. Additionally, certain gains on the sale of either C or S corporation stock may qualify to be taxed at a reduced rate of 3% if the corporation is domiciled in Massachusetts and its stock otherwise generally meets the requirements of small business stock.
Origin: IRC § 1202; M.G.L. c. 62, § 1,4(c)
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2023
FY2024
FY2025
FY2026
FY2027
Personal Income Tax
Preferential Rate of Taxation
1.501
Small Business Stock, Capital Gains Tax Rate
Certain gains derived from sales of C corporation stock that is qualified small business stock (QSBS) are excluded from income. Additionally, certain gains on the sale of either C or S corporation stock may qualify to be taxed at a reduced rate of 3% if the corporation is domiciled in Massachusetts and its stock otherwise generally meets the requirements of small business stock.
<a href="https://www.law.cornell.edu/uscode/text/26/1202" target="_blank">IRC <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section1" target="_blank">§ 1</a>202</a>; M.G.L. c. 62, <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section1" target="_blank">§ 1</a>,<a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section4" target="_blank">4(c)</a>
3.9
1.5
0.6
0.6
0.7
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