Updated Generator Rules Lower Costs, Improve Safety

Posted by Bob Rio on Mar 19, 2018 8:30:00 AM

The Baker Administration’s three-year-old regulatory review initiative resolved a major issue for Massachusetts employers on March 9 when the Department of Environmental Protection (DEP) broadened the ability of companies to use emergency electric generators.

Generator.jpgDEP’s amended Air Pollution Control regulations ironed out inconsistencies between federal rules, which allow limited non-emergency use of generators, and state rules, which did not.

Associated Industries of Massachusetts long argued that the prohibition on non-emergency use was forcing member companies to rent generators during shutdowns for non-emergency tasks such as electric panel upgrades. The practice was not only costly but dangerous as equipment had to be brought in when the same equipment was on site.

DEP on March 9 changed the rules on emergency generators to mimic federal regulations, increasing safety, reducing emissions and saving money

  • The previous 300-hour limit for emergencies has been removed; and
  • Up to 50 hours per year may be use for non-emergency use (as part of a larger 100 hour per year exemption).

The regulation update is the latest bit of good news to come out of Governor Baker’s 2015 Executive Order 562, which required state agencies to review their regulations to eliminate or modify outdated or burdensome requirements while aligning Massachusetts regulations with Environmental Protection Agency rules and other federal requirements.

“We believe that it was the governor’s Executive Order 562, requiring that state and federal regulations be consistent when possible, that prompted the recent amendments. Several AIM members have already contacted us to let us know that it will reduce their operating costs while at the same time result in enhanced safety and lower emissions,” AIM President and Chief Executive Officer Richard C. Lord wrote in a letter Friday to Governor Baker’s Chief of Staff, Kristen Lepore, and Secretary of Environmental Affairs Matthew Beaton.

There were several other changes in the March 9 rule-making. Companies should review the regulations for any changes applicable to their own operations.

Questions about the new regulations? Contact Bob Rio at


Topics: Environment, Energy, Regulatory Reform

Employer Confidence Strengthens, Despite Market Volatility

Posted by Christopher Geehern on Mar 6, 2018 7:40:45 AM

Massachusetts employer confidence strengthened during February as optimism about long-term economic growth outweighed a volatile month in the financial markets.

BCI.February.2018.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) rose 0.4 points to 64.5, setting another 17-year high. The BCI has gained 2.4 points during the past 12 months as confidence levels have remained comfortably within the optimistic range.

Enthusiasm about the U.S. and Massachusetts economies, along with a bullish outlook on the part of manufacturers, fueled the February increase.

At the same time, hiring remained a red flag as the BCI Employment Index fell 4 points between February 2017 and February 2018. Almost 90 percent of employers who responded to the February confidence survey indicated that the inability to find skilled employees is either a modest, large or huge problem.

“Fourteen percent of respondents said finding employees represents a huge problem that is hampering their company’s growth. One-third of employers see employee recruitment as a big problem, while 29 percent see it as a modest issue,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

“For the short-term, however, the state and national economies remain strong and the recent announcement by Amazon of a major expansion in Boston indicates that the trend should continue.”

The survey was taken before President Donald Trump roiled the financial markets last week by pledging to impose stiff tariffs on steel and aluminum imports.

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The Index has remained above 50 since October 2013.

Constituent Indicators

The constituent indicators that make up the overall Business Confidence Index were mixed during February.

The most significant gains came in the Manufacturing Index, which surged 3.9 points to 66.2, and the US Index, which rose 2.1 points for the month to 66.9 and 8.0 points for the year. The Massachusetts Index fell 0.4 points to 68.5, but was up 5.3 points for the year and still higher than the national outlook for the 96th consecutive month.

The Current Index, which assesses overall business conditions at the time of the survey, rose 2.4 points to 64.1.

The Future Index, measuring expectations for six months out, declined 1.6 points to 65. The Current Index has risen 4.2 points and the Future Index 0.6 points during the past 12 months.
Operational Views

The Company Index, reflecting employer views of their own operations and prospects, was essentially flat, gaining 0.1 points to 62.4. The Employment Index also rose 0.1 points, to 56.4, versus 60.4 in February 2017.

Manufacturing companies (66.2) were more optimistic than non-manufacturers (61.9). Large employers (69.8) were more bullish than medium-sized (62.0) or small businesses (62.7).

“The special February BCI question about the ability of employers to find and hire skilled employees confirms our concerns about the long-term changes now facing the Massachusetts labor market,” said Alan Clayton-Matthews, Ph.D., School of Public Policy & Urban Affairs, Northeastern University, and a BEA member.

“Since the end of the Great Recession, total employment has grown by 355,600, the working age population has increased by 326,700, and the labor force has grown by 208,100. In other words, employment in Massachusetts has grown considerably faster than the working age population, and almost twice as fast as the labor force.” 

AIM President and CEO Richard C. Lord, also BEA member, said member employers expressed broad optimism about the national economy in the wake of tax reform, but remain uncertain about Massachusetts given the prospect of ballot questions that would impose an income tax surcharge, mandate paid family leave and increase the minimum wage to $15 per hour.

“Massachusetts employers have been more bullish about the state economy than the national economy for 96 consecutive months, but the numbers are now very close – 68.5 for Massachusetts and 66.9 for the nation,” Lord said.

“Economic competitiveness is a constant struggle. AIM looks forward to working with the Legislature and Governor Baker during the next several months to ensure that Massachusetts companies are able to grow and prosper here.”

Topics: Skills Gap, AIM Business Confidence Index, Massachusetts economy

Lack of Natural-Gas Infrastructure Puts Massachusetts at Risk

Posted by Christopher Geehern on Mar 5, 2018 11:07:11 AM

Employers in Massachusetts pay some of the highest electricity rates in the country, in part because the commonwealth lacks adequate infrastructure to bring natural gas from other regions of the country. AIM Senior Vice President of Government Affairs Robert Rio last week debated the natural-gas issue on Commonwealth magazine's Codcast with Elizabeth Turnbull Henry, President of the Environmental League of Massachusetts.


Topics: Environment, Energy, Business Costs

Attorney General Releases Wage-Equity Guidance for Employers

Posted by Brad MacDougall on Mar 1, 2018 12:42:05 PM

Attorney General Maura Healey today issued much-anticipated guidance for employers on complying with the new Massachusetts wage-equity law that takes effect on July 1.

AG.Maura.Healey.jpgThe 30-page guidance document addresses key issues such as the definition of comparable work, the employees who will be covered by the law, permissible variations in pay, and the subjects that may no longer be discussed during employment interviews. There is also a downloadable calculator designed to help smaller businesses to identify differences in pay that may require analysis.

“Associated Industries of Massachusetts (AIM) and its member employers are pleased to have played a constructive role in the development of the pay equity law and guidance,” said Richard C. Lord, President & CEO of AIM.

“We appreciate the efforts of Attorney General Healey and staff who have taken seriously the opinions of the employer community. AIM is now committed to helping Massachusetts businesses comply with the law and we look forward to working with the attorney general on those efforts.”

The first step in that compliance education effort will take place on March 13 and 15 as Genevieve Nadeau, Chief of the Attorney General’s Civil Rights Division, will join two AIM webinars looking at details of the new law. The March 13 webinar is for small employers while the March 15 session is for larger employers.

The law provides different compliance measures based on the size of a company’s comparable-work groups. For the purposes of the two webinars, large employers are those with one or more comparable work groups with 30 or more employees.  Comparable work groups cross organizational lines and departments and are comprised of jobs for which work is substantially similar in that it requires substantially similar skill, effort and responsibility and is performed under similar working conditions.

Smaller employers will likely be able to use the Attorney General's calculator exclusively. AIM members with questions about their status may call the Employer Hotline at 800-470-6277.

The wage-equity law, signed by Governor Charlie Baker on August 1, 2016, is intended to promote salary transparency, limit questions to job candidates about salary history, and encourage companies to conduct reviews to detect pay disparities. But the law also recognizes legitimate bases for pay differences among employees such as performance and differences in education, training, and experience.

The law states that “no employer shall discriminate in any way based on gender in the payment of wages, or pay any person in its employ a salary or wage rate less than the rates paid to its employees of a different gender for comparable work.

The Attorney General’s guidance document outlines the instances under which wage differentials are permitted. Those differentials may be based upon:

  • a system that rewards seniority with the employer;
  • a merit system;
  • a system that measures earnings by quantity or quality of production, sales, or revenue;
  • the geographic location in which a job is performed;
  • education, training or experience to the extent such factors are reasonably related to the job in question; or
  • travel, if the travel is a regular and necessary condition of the job.

Joining Nadeau for the AIM small-business wage-equity webinar will be Kyle Pardo, Vice President of AIM HR Solutions, and David Wilson and Arielle Kristan, lawyers at the firm of Hirsch Roberts and Weinstein. The expert panel for the large-company webinar will include Nadeau, Pardo, and lawyers Robert Fisher and Hillary Massey of Seyfarth Shaw LLP. Fisher chairs AIM’s HR-Labor Law Committee.


Register for the Small-Business Wage-Equity Webinar


Register for the Large-Business Wage-Equity Webinar

Topics: Attorney General Maura Healey, Pay Equity, wage equity

Senate Energy Bill: Christmas for Special Interests

Posted by Bob Rio on Feb 13, 2018 8:58:57 AM

Some members of the Senate don’t want you to spend all those recently announced savings on your electric and gas bills just yet.

solarpanels.small.jpgWeeks after federal tax reform generated rate reductions of $56 million for Eversource electric customers and $36 million dollars for National Grid gas customers, the Senate Committee on Global Warming and Climate Change released an energy bill yesterday that will take all the savings back from the wallets of consumers.

Proponents claim these proposals will reduce the threat of climate change. They will not. Instead, the bill has become Christmas in February for energy related special interests. 

The 71-page bill, still under review by AIM, contains unnecessary and redundant programs just a year after the Legislature passed and Governor Charlie Baker signed another omnibus energy measure that brought competitive bidding to the procurement of clean energy. Massachusetts has already committed to a goal of 80 percent clean energy by 2050.  Legislating more will not make it happen faster – it will just increase prices for something we are already on track to meet.

The bill includes:

  • A requirement for the Secretary of Energy and Environmental Affairs to develop a new “market-based compliance mechanism” on carbon emissions from transportation. The mechanism is better known as a carbon tax.  AIM supports imposition of a tax on carbon only if the money is used exclusively to invest in programs, including public transportation, that reduce fuel use. The current bill passes such discussions off to a regulatory process.  
  • A mandated increase in the amount of renewable power purchased by energy suppliers. Last year’s energy bill required the state’s utilities to purchase large amounts of offshore wind, hydropower and onshore wind as part of the largest competitive procurements for power ever in Massachusetts.  The results of these competitive bids are currently under review by the Department of Energy Resources (DOER) and the Department of Public Utilities (DPU). AIM believes lawmakers should let the current process play out before layering addition regulations on top.
  • An increase in subsidies (net metering) for solar development. The provision sounds good, but is unnecessary. The commonwealth unveiled a new competitive solar program in August that has already  reduced the cost of solar energy by nearly 50 percent. Let the new program work.

Employers urge the new Senate President, Harriet Chandler, and House Speaker Robert Deleo to take no action on the energy bill since many of the proposals are already set in motion. Give the current programs time to be implemented in a manner that creates benefit for the ratepayer, not special energy interests.

Interested in updates on energy issues? Contact Bob Rio at 

Topics: Massachusetts senate, Environment, Energy

Supreme Court Hears Challenge to Graduated Tax Proposal

Posted by Brad MacDougall on Feb 6, 2018 10:49:37 AM

Lawyers for five prominent business leaders, including AIM President Rick Lord, argued before the Massachusetts Supreme Judicial Court today that a proposed surtax on incomes of more than $1 million violates the state constitution.

Adams Courthouse.jpgThe business leaders are challenging a proposed 2018 ballot question that would amend the state constitution to impose a graduated income tax and direct the revenue to be spent on transportation and education. The amendment would add a new four percentage-point tax (representing an 80 percent increase in the personal income tax rate) on all incomes more than $1 million. 

The plaintiffs assert that the proposal is riddled with constitutional flaws. It combines a graduated income tax that has been rejected five previous times by Massachusetts voters with attractive spending in a prohibited manipulation of the vote called “logrolling.”

And it does something that has never been done before: never in the history of Massachusetts has a tax or tax rate been set in the constitution, making the new tax essentially permanent and unchangeable. 

Attorney Kevin Martin of Goodwin Procter, who represents the business leaders, argued that it is critical to understand the difference between typical initiative petitions (also referred to as ballot questions) that amend state statutes, and this ballot question that would change the Massachusetts constitution and strip the Legislature of its ability to easily amend the policy in the future. Only three initiative petitions to amend the constitution have ever appeared on the ballot. 

The named defendants in the lawsuit are Attorney General Maura Healey and Secretary of State William Galvin. 

The court today pressed advocates of the ballot question and the Attorney General’s office about the issue of combining the seemingly separate issues of a tax increase and funding for transportation and education.

“Why not add energy, health care, pension reform?” asked Associated Justice Scott L. Kafker, who mused that voters were apparently being asked to render a decision on three distinct policy matters within a single ballot question.

“So, what is the unified public policy here?” added Associated Justice Elspeth B. Cypher.

AIM opposes the graduate-tax proposal on a policy basis because it would harm thousands of small and medium-sized business that pay taxes on an individual basis. The Massachusetts Department of Revenue estimates that 80 percent of the returns that would be affected by the surtax include some amount of business income.

The five plaintiffs in the suit are: Christopher Anderson, President of the Massachusetts High Technology Council, Inc. (MHTC); Christopher Carlozzi, Massachusetts State Director of the National Federation of Independent Business (NFIB); Richard Lord, President and Chief Executive Officer of Associated Industries of Massachusetts (AIM); Eileen McAnneny, President of the Massachusetts Taxpayers Foundation (MTF); and, Daniel O’Connell, President and Chief Executive Officer of the Massachusetts Competitive Partnership (MACP). 

“We appreciate the careful consideration the SJC is giving this case, which is the first since 1937 to involve an initiative petition to amend the constitution.  Their questions to both sides were thoughtful and probing, and we await their decision,” said Martin.

Conact Brad MacDougall a to receive updates on this issue.

Employers Begin 2018 on Confident Note

Posted by Christopher Geehern on Feb 6, 2018 8:06:35 AM

Massachusetts employers began 2018 much the way they ended 2017 – with growing confidence in the economy and optimism about their own business prospects.

BCI.January.2018.jpgThe Associated Industries of Massachusetts Business Confidence Index (BCI) rose half a point to 64.1 during January, setting another 17-year high. The BCI has gained 2.7 points during the past 12 months as employer confidence levels have remained comfortably within the optimistic range.

Growing enthusiasm about the Massachusetts economy and a brightening outlook on economic conditions six months from now fueled the January confidence increase. At the same time, the hiring outlook remained muted as low unemployment and demographic shifts continued to impede the ability of employers to find the workers they need.

The survey was taken prior to major declines in global financial markets during the past several days.

“Rising confidence is not surprising in a state with 3.5 percent unemployment and an economy that grew at a 3.3 percent annual rate during the fourth quarter,” said Raymond G. Torto, Chair of AIM's Board of Economic Advisors (BEA) and Lecturer, Harvard Graduate School of Design.

“Economic output, job growth and spending all rose at a healthy clip in Massachusetts during the final three months of the year and economists expect modest growth to continue during the first half of 2018.”

The AIM Index, based on a survey of Massachusetts employers, has appeared monthly since July 1991. It is calculated on a 100-point scale, with 50 as neutral; a reading above 50 is positive, while below 50 is negative. The Index reached its historic high of 68.5 on two occasions in 1997-98, and its all-time low of 33.3 in February 2009.

The Index has remained above 50 since October 2013.

Constituent Indicators  

The constituent indicators that make up the overall Business Confidence Index were mixed during January.

The most significant gain came in the Massachusetts Index assessing business conditions within the commonwealth, which rose 1.3 points to 68.9. The Massachusetts Index has gained 3.7 points in the past two months, 5.5 points year over year and now stands at its highest level since November 2000.

The U.S. Index of national business conditions also continued a yearlong rally by gaining 0.6 points to 64.8. January marked the 95th consecutive month in which employers have been more optimistic about the Massachusetts economy than the national economy.

The Current Index, which assesses overall business conditions at the time of the survey, decreased a point to 61.7 while the Future Index, measuring expectations for six months out, surged 2.1 points to 66.6. The Current Index has risen 2.1 points and the Future Index 3.3 points during the past 12 months.

Operational Views

The Company Index, reflecting employer views of their own operations and prospects, rose slightly, gaining 0.2 points to 62.3. The Employment Index was essentially flat, leaving it 2.1 points below its level of January 2017.

Non-manufacturing companies (66.6) were more optimistic than manufacturers (62.3). Large employers (67.2) were more bullish than medium-sized (62.7) or small businesses (63.5).

“The strong Future Index readings signal that employers anticipate steady growth during the first two quarters of 2018. The only fly in ointment remains the prospect that labor shortages may constrict the ability of companies to grow and expand,” said Paul Bolger, President, Massachusetts Capital Resource Company and a BEA member.

Political Risks

AIM President and CEO Richard C. Lord, also BEA member, said 2018 brings with it significant risk for employers as progressive groups push ballot questions that could create a $1 billion paid family and medical leave program, impose a punitive tax on many small businesses and raise the state minimum wage to $15 per hour.

“The Massachusetts Supreme Judicial Court will today hear arguments in a challenge that I and four other business leaders filed to the constitutionality of the income surtax question. Meanwhile, the business community is seeking common ground on a compromise paid-leave proposal that will not harm the economy,” Lord said.

Topics: AIM Business Confidence Index, Massachusetts economy, Massachusetts employers

Video Blog: How Will Automation and Robotics Affect the Economy?

Posted by Christopher Geehern on Feb 5, 2018 8:30:00 AM

How will artificial intelligence, automation and robotics affect the Massachusetts economy? The Associated Industries of Massachusetts Economic Outlook Forum tackled that question on January 26. Expert analysts included, left to right, moderator Jeff Brown, Business Editor of WBZ radio in Boston; Peter Russo Director of Growth and Innovation at the Massachusetts Manufacturing Extension Parntership; Martha Sullivan, President and CEO of Sensata Technologies in Attleboro; and David Askey, Co-Founder and CEO of Ascend Robotics in Cambridge.

Topics: Technology, AIM Executive Forum, robotics

AIM President: Technology Key to Solving Worker Shortage

Posted by Christopher Geehern on Jan 26, 2018 1:14:00 PM

Robotics, artificial intelligence and automation hold the unique promise of resolving the shortage of skilled workers that threatens the economic future of Massachusetts, AIM President and Chief Executive Officer Richard C. Lord said this morning.

Lord.Speaking.jpgDelivering the fourth annual State of Massachusetts Business address before 300 senior business executives, Lord acknowledged that automation suffers from a grim image problem in the larger society where people fear that robots will take their jobs. But he said Massachusetts employers starved for qualified employees are using robots in collaboration with people to extend the reach of their work forces.

“In a state where employers created 70,000 jobs last year and unemployment stands at 3.6 percent, the structural shortage of skilled workers stands as the primary impediment to sustained economic growth,” Lord told the 2018 AIM Economic Outlook Forum.

“Massachusetts companies across industries ranging from software to manufacturing to hospitality have postponed expansions, declined to bid for contracts or outsourced work because they simply can’t find people with the training needed to compete in a complex world. The only way out of this economic dead end for Massachusetts is to rely upon productivity improvements fueled by intelligent technology to extend the reach of the talented people we employ.”

Lord highlighted the example of Barrett Distribution of Franklin, which is using robots to improve productivity and reduce the amount of time its 500 employees spend moving throughout large warehouses to provide orders for retailers and e-commerce customers. Established as a single warehouse in 1941, Barrett now operates more than 2.1 million square feet of state-of-the-art warehouse space across the country.

“The industry is changing very fast, the robots will get smaller, more adaptive, (and) a little bit cheaper, so I think you’ll see the adoption rate go up very high across the industry. And certainly for us, we’re going to be on the leading edge of this technology,” Scott Hothem, Senior Vice President of Customer Solutions at Barrett, said in a video shown the audience.

Lord said the good news is that Massachusetts is a global center of robotics, AI and automation. Driven by academic research institutions like MIT, Harvard, UMass and BU, Massachusetts occupies a unique position as the crucible of intelligent industries ranging from driverless vehicles to Patriot missiles to Roomba vacuum cleaners.

It’s also worth noting, according to Lord, that there is plenty of room for improvement on the productivity front. The United States posted an historically low annual labor productivity growth rate of 1.1 percent between the great Recession and 2016. The McKinsey Global Institute estimates that automation could raise productivity growth globally by 0.8 to 1.4 percent each year.

A panel of experts largely agreed with the idea that automation will enhance, rather than replace, most human labor.

David Askey, founder of Ascend Robotics in Cambridge, said the manufacturing companies that use his technology have realized productivity increases approaching 40 percent that have also raised the compensation and value of workers.

“Most of our calls come from customers who are not able to find enough skilled workers or want to expand,” Askey said.

Martha Sullivan, President and CEO of Sensata Technologies of Attleboro, said that while the technology for mass use of autonomous vehicles remains several years away, it is a technology that could change the entire business model of the auto industry from one that sells vehicles to consumers to one that helps companies manage fleets.

“Will you have private ownership anymore? Will you need private automobile insurance? … It becomes an asset- management question,” she said.

Lord said employers acknowledge the need to engage in debate about the hard issues raised by the technological revolution: Does automation ultimately create or cost jobs? Do Amazon and similarly disruptive companies ultimately help or harm the economy? And are technology driven productivity increases to blame for the slow rate of wage growth eight years into an economic recovery?

“But the ultimate truth is this – technology and innovation are here to stay; they do not regress, they do not go away and they do not waiver from the relentless pursuit of removing inefficiencies from the business economy.,” Lord said.

“If large numbers of workers are not going to walk through the doors of our companies to write code or make jet engine parts, employers will have to find ways to do more with less.”

Topics: Massachusetts economy, AIM Executive Forum

Tax Reform Repatriation Levy Right Around the Corner

Posted by Alan Osmolowski, CPA on Jan 22, 2018 8:30:00 AM

Editor's note - Alan Osmolowski, CPA, is a partner at BlumShapiro, the largest regional business advisory firm based in New England, with offices in Connecticut, Massachusetts and Rhode Island.

The Tax Cuts and Jobs Act (the Act) was signed into law by the President on December 22, 2017. The Act represents some of the most historic changes to US tax law in more than 30 years.

Finance.pen.small.jpgMost of the tax law changes take effect in 2018.

There are some changes, though, that have more immediate implications. The new one-time repatriation tax on accumulated foreign earnings is one of them. Corporations that have accumulated foreign-sourced income may find themselves owing the federal government (and in some cases, state governments) an additional tax payment as soon as April 15 of this year.

Under the new law, a US person (including corporations, S corporations, partnerships and individuals) owning at least 10 percent, directly or indirectly, of the stock in a foreign subsidiary is required to include in income their pro-rata share of the undistributed, non-previously-taxed post-1986 foreign earnings of the foreign subsidiary.  This provision of the Act is effective for the last taxable year that begins before January 1, 2018.

The operative wording of the Act relative to this provision in effect imposes the mandatory repatriation tax for a calendar year-end taxpayer as part of their 2017 tax compliance (and with respect to corporations, the recording of a tax provision on their 2017 financial statements).

The amount of deemed repatriation income is reduced by any aggregate foreign earnings and profits deficits. A partial deduction is also allowed against the deemed repatriation income such that a US corporation’s effective tax rate is 15.5 percent on their aggregate foreign cash positions and 8 percent on the balance.

The inclusion of foreign accumulated earnings is deemed to be additional “Subpart F income.”  Foreign tax credits may be able to be used to offset the tax. An election can be made such that the payment of the net tax liability can be spread over a period of eight years.

The one-time repatriation tax is owed on accumulated foreign “earnings and profits” (E&P) of a 10 percent or more owned foreign subsidiary going back to 1986. That is a long period of time for most companies to analyze. For a calendar year-end US corporation, the first installment of the tax is due April 15.  Many taxpayers are struggling with the daunting task of calculating their pro-rata share of accumulated foreign earnings and profits since 1986.

There are also many unanswered questions relative to how state and local tax (SALT) jurisdictions will tax the income the federal government is requiring to be included in income relative to the mandatory repatriation tax.

The starting point for state taxable income is typically federal taxable income; so the one-time deemed repatriation of Subpart F income raises some interesting and possibly problematic SALT questions, especially for those states that don’t follow all of the provisions of the Internal Revenue Code. In addition, should a state impose its tax on the deemed repatriated income, it would appear doubtful that many states would allow for the eight-year payment deferral provided by the federal law and thus require an immediate payment of the state income tax.

Some business people are calling the repatriation tax a “tax holiday” and others are calling it “confiscatory.”

The repatriation tax is just one topic that will be discussed by a panel of experts on February 5 as Associated Industries of Massachusetts and BlumShaprio offer a “Lunch and Learn” webinar on the new tax law.

Topics will include:

  • General discussion about tax reform in the US and the rest of the world
  • Changes to US corporate taxation
  • US International tax law changes
  • What does the new law mean for my business?
  • S vs C Corporation
  • SALT impact
  • Financial reporting requirements

There will also be a question and answer period following the presentation.

The webinar is free for AIM members and guests. Registration is below.

Register for the AIM/BlumShapiro Tax Reform Webinar

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