An Act closing a corporate tax haven loophole

This bill amends Massachusetts tax law to explicitly define and address jurisdictions classified as tax havens, which are currently exempt from certain state reporting requirements. It directs the state tax commissioner to create a specific list of such jurisdictions based on criteria like low effective tax rates, lack of transparency, and marketing as tax havens, while also requiring a biannual public report with recommendations on updating this list. Under the new rules, companies making a "water's-edge election" to avoid state taxes would be required to submit detailed spreadsheets disclosing their income, tax liabilities, and allocation methods for both U.S. and listed foreign jurisdictions. Ultimately, the legislation aims to increase transparency regarding where corporations report income by ensuring these disclosures are made available to the public.