Perspectives

“Tax Haven” proposals in Kentucky, Maine, Massachusetts, and New Hampshire 

Multistate tax alert | February 27, 2015

This Tax Alert outlines the states’ current approaches for defining “tax havens” and summarizes the tax haven proposals and amendment efforts that are under consideration by various state legislatures.

​“Tax Haven” proposals

Legislatures in Kentucky, Maine, Massachusetts, and New Hampshire are currently considering “tax haven” proposals. In an effort to combat the state impact of perceived international income shifting, these proposed laws would generally require an otherwise water’s-edge filing group to include the income and apportionment factors of certain related corporations incorporated or doing business in a purported “tax haven” foreign jurisdiction. Alaska, Montana, Oregon, Rhode Island, West Virginia, and the District of Columbia have already enacted versions of these laws.1

In this Tax Alert we outline the states’ current approaches for defining “tax havens” and summarize the tax haven proposals and amendment efforts that are under consideration by various state legislatures.

1 Alaska Stat. § 43.20.145(a)(5); D.C. Code Ann. § 47-1810.07(a)(2)(F)(i); Mont. Code Ann § 15-31-322(1)(f); Or. Rev. Stat. § 317.715(2)(a); R.I. Stat. 44-11-4.1(d); W. Va. Code § 11-24-13f(a)(7). 

​Multistate Tax alert archive

The Multistate Tax Alert Archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.

View the list of archived Multistate Tax alerts.

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