Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
The Legislature is considering policy changes to mitigate the Massachusetts impacts of the federal One Big Beautiful Bill Act, also known as OB3.
A bill filed by the governor, (H. 4975) would spread out implementation of five OB3 provisions affecting corporate taxes over two years in order to soften negative impacts on state revenue collections. Without action, $442 million in state revenue would be in jeopardy.
The Healey-Driscoll administration said the bill would ensure that the fiscal 2026 budget “remains intact.”
The administration said the state would experience a modest increase in state revenues for two years if its bill is adopted, but some analysts believe the state would experience negative impacts in the third year and beyond.
Among many provisions, the governor’s bill would:
• Expand an option that allows eligible Massachusetts taxpayers to use pass-through entities to pay their state and federal taxes
• Allow for a delay of up to one year on the implementation of federal tax policy changes that carry more than a $20 million impact on state revenue (Current state tax laws automatically update when the federal Internal Revenue Code changes.)
• Require in-state investment to qualify for state Opportunity Zone tax benefits
• Delay the adoption of federal rules regarding the immediate expensing of research and experimental expenditures
• Modify business interest limitations
• Increase dollar limitations for expensing of certain depreciable business assets
• Allow special depreciation for qualified production property
The Joint Committee on Revenue held a hearing on the bill on Feb. 12.