Business Tax Expenditure Review Database

This is a database of Massachusetts business tax expenditures: tax credits, deductions, exemptions, and deferrals, with estimated costs and basic oversight details.

“Business Tax Expenditures, FY 2012”

The source does not give a narrative reason for an audit, but it shows that some tax credit programs had reporting requirements meant to disclose who received credits and how much they received.

“Beginning in 2012, DOR must submit annual report by May 15.”

These tax breaks matter because they represent public revenue the state gives up, delays, or redirects to encourage certain activities or industries.

“The immediate deduction results in a deferral of tax or an interest-free loan.”

For ordinary residents, the database shows which businesses or industries may benefit from tax breaks, and whether there are public reports, clawbacks, or expiration dates attached.

“DOR will make annual report available on website”

Many tax breaks had no clawback and no sunset date, meaning the listed benefit generally did not include an automatic expiration or repayment trigger in this database.

“No”

For several credit programs, agencies were expected to start sending annual reports to the Department of Revenue in 2012, and DOR would make some reports public.

“Beginning in 2012, EACC must submit annual report by May 15 to DOR.”

Some listed tax expenditures were large, including special corporate apportionment rules estimated at $340 million for FY 2012 and sales-tax exemptions for containers estimated at $173.9 million.

“The estimate is of the impact of departing from this standard formula.”

A tax expenditure is a tax break: the government collects less money than it otherwise would because a law gives a deduction, exemption, credit, or delayed tax payment.

“The non-taxation of their net income and property creates a tax expenditure.”