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Bill H.3052
Chapter 63 of the General Laws is hereby amended by inserting after section 38NN the following section:-
Section 38OO.
(a) For the purposes of this section the following word “Living wage” shall mean the remuneration received for a standard workweek by a worker in the commonwealth sufficient to afford a decent standard of living for the worker and their family as determined by the MIT Living Wage Calculator. Elements of a decent standard of living include food, water, housing, education, health care, transportation, clothing and other essential needs including provision for unexpected events.
(b) A corporation that has elected to be a benefit corporation pursuant to chapter 156E shall be allowed a preferential tax rate equal to the Commonwealth’s corporate tax rate, minus 1.5% points for providing certain benefits to its employees if it meets the standards laid out in section (c) and certified by the department of revenue pursuant to subsection (d).
(c) To be eligible for the tax rate benefit under this section a benefit corporation shall:
(1) offer at least 4 of the following 6 employee benefits:
(i) a living wage;
(ii) paid parental leave for 12 weeks following the birth or adoption of a child;
(iii) flexible spending accounts;
(iv) a chief executive officer-to-lowest paid employee compensation ratio of no greater than 25:1; and
(v) the election of the benefit corporation to be governed as an employee cooperative pursuant to chapter 157A;
(vi) profit sharing provisions that return at least 10% of the corporate profits to the employees;
(2) receive certification from the department of revenue pursuant to subsection (d);
(3) offer at least 4 of the employee benefits listed in paragraph (1) for at least 12 consecutive months prior to and in the taxable year in which the tax rate benefit is claimed.
(d) The commissioner shall promulgate regulations to establish a certification process for benefit corporations that offer 4 of the employee benefits listed in paragraph (1) of subsection (c).
(f) The state secretary, in consultation with the commissioner, shall promulgate regulations establishing an application process for determining eligibility for the preferential tax rate.
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