2023 Massachusetts General Laws › Part I - Administration of the Government › Title IX - Taxation › Chapter 63 - Taxation of Corporations › Section 29e - Definitions; Property and Casualty Insurance Companies; Retaliatory Taxes; Credits Against Taxes Imposed by Sec. 22

[Text applicable as provided by 1998, 259, Sec. 10.]
Section 29E. (a) As used in this section, the following words shall have the following meanings:—
''Credit share'', a credit amount equal to the product of the following:
(1) $8,000,000;
(2) multiplied by a fraction, the numerator of which shall be the domestic property and casualties insurer's retaliatory taxes attributable to the surtax which would have been payable for the preceding taxable year, before application of the credit provided by subsection (b) and the denominator of which shall be the total retaliatory taxes attributable to the surtax which would have been payable for the preceding taxable year, before application of the credit provided by subsection (b) for all domestic property and casualty companies that do business in the commonwealth and that have submitted the information required by subsection (d).
''Domestic property and casualty insurer'', a property and casualty company organized or domiciled in the commonwealth.
''Foreign property and casualty insurer'', a property and casualty company organized or domiciled in another jurisdiction.
''Property and casualty insurer'', an insurance company which satisfies the definition of an insurance company in section 1 of chapter 175, except life insurance companies as defined in section 118 of said chapter 175, and which is subject to the provisions of this chapter.
''Retaliatory taxes'', those taxes imposed or assessed by and paid to another jurisdiction by any domestic property and casualty insurer due to the surtax as defined in section 22 of this chapter. Such term, however, shall not include penalties or interest for late payment of taxes.
(b) Property and casualty insurers which pay retaliatory taxes to other jurisdictions may claim a credit against the tax imposed by section 22 of chapter 63 of the General Laws. Except as provided in subsection (c), the amount of the credit shall equal 100 per cent of the retaliatory taxes attributable to the surtax which would have been payable for the preceding taxable year, before application of any credit. The company seeking the credit must furnish proof of payment of the retaliatory tax to the commissioner as required pursuant to subsection (d).
(c) If the total retaliatory taxes attributable to the surtax payable for the prior tax year as reported pursuant to subsection (d) for all domestic property and casualty companies that do business in the commonwealth exceed $8,000,000, the amount of each domestic property and casualty company's credit shall be limited to that company's credit share. The commissioner of revenue shall be responsible for reporting to each company its credit share amount by February fifteenth of the current taxable year.
(d) A domestic property and casualty company shall provide the commissioner of revenue with the amount of its retaliatory taxes attributable to the surtax and payable for the preceding taxable year, before application of the credit, by December 31 of the current taxable year.