Massachusetts Targets Offshore Corporate Gains After GOP Tax Law

Massachusetts lawmakers see an opportunity in this year’s GOP federal tax law to levy a greater share of multinational corporations’ foreign income, drawing opposition from pro-business groups who argue the law is incompatible with state tax codes.

Bills in the state’s Democrat-led house and senate would expand from 5% to 50% the share of foreign income multinational corporations are required to report for state tax calculations. Nearly half of the state’s Democratic-controlled legislature has signed on to the legislation, which could get a floor vote as soon as early next year.

Supporters of the legislation say the measures would fairly ...