Section 52A. Every utility corporation doing business within the commonwealth shall pay annually a tax upon its corporate franchise in accordance with the provisions of this section.
(1) When used in this section, the following terms shall have the following meanings:
[Paragraph (a) of subdivision (1) effective for tax years beginning on or after January 1, 2009. See 2008, 173, Sec. 101.]
(a) “Utility corporation” means every business corporation that is (i) an electric company and gas company subject to chapter 164; (ii) a water company and aqueduct company subject to chapter 165; (iii) a telephone and telegraph company subject to chapter 166; (iv) a railroad and railway company subject to chapter 160; and every business corporation qualified under section 131A of said chapter 160 to acquire, own and operate terminal facilities for steam, electric or other types of railroad; (v) a street railway subject to chapter 161; (vi) an electric railroad subject to chapter 162; (vii) a trackless trolley company subject to chapter 163; (viii) a pipe line company engaged in the transportation or sale of natural gas within the Commonwealth; and (ix) every foreign corporation which is not subject to the above chapters but which does an electric, gas, water, aqueduct, telephone, telegraph, railroad, railway, street railway, electric railroad, trackless trolley or bus business within the Commonwealth and has, before January 1, 1952, been subject to taxation under sections 53 to 60, inclusive.
[Introductory paragraph of paragraph (b) of subdivision (1) applicable for discharges in taxable years ending after December 31, 2008. See 2009, 27, Sec. 153.]
(b) “Net income” means the gross income from all sources, without exclusion and without regard to section 108(i) of the Code, other than dividends from investment in such other utility corporations which represent eighty per cent or more of the voting stock thereof, for the taxable year, less the deductions, but not credits, allowable under the provisions of the Federal Internal Revenue Code, as amended and in effect for the taxable year. Deductions with respect to the following items, however, shall not be allowed:—
(i) dividends received,
(ii) losses sustained in other taxable years,
(iii) taxes on or measured by income, franchise taxes measured by gross or net income, franchise taxes for the privilege of doing business and capital stock taxes imposed by a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, a territory or possession of the United States or a foreign country or a political subdivision of any of the foregoing,
[Clauses (iv) and (v) of paragraph (b) of subdivision (1) applicable to obligations issued after August 31, 2008 in taxable years ending after that date. See 2009, 27, Sec. 152.]
(iv) the deduction allowed by section 168(k) of the Code,
(v) the deduction allowed by section 199 of the Code, and
[Clause (vi) of paragraph (b) of subdivision (1) applicable to obligations issued after August 31, 2008 in taxable years ending after that date. See 2009, 27, Sec. 152.]
(vi) the deduction described in section 163(e)(5) of the Code, to the extent increased by amendments to section 163(e)(5)(F) and section 163(i)(1) of the Code, inserted by section 1232 of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5.
(c) “Taxable year”, any fiscal or calendar year or period for which the utility corporation is required to make a return to the federal government.
(d) “Doing business” shall include, without limiting its generality, in the case of an incorporated railroad or railway company subject to chapter one hundred and sixty, the leasing of all or substantially all of its physical properties.
(e) “Code”, the Internal Revenue Code of the United States, as amended and in effect for the taxable year.
(2) Every utility corporation doing business solely within the commonwealth shall pay annually a tax upon its corporate franchise equal to six and one half per cent of its net income during the taxable year. Every utility corporation doing business both within and without the commonwealth shall pay annually a tax upon its corporate franchise equal to six and one half per cent of that portion of its net income during the taxable year as is allocable to the commonwealth.
(3) The portion of net income derived from business carried on within the commonwealth by a corporation subject to tax under this section shall be determined under the provisions of sections thirty-eight and forty-two; provided, however, that under subsection (c) of section thirty-eight its taxable net income shall be multiplied by a fraction, the numerator of which is the property factor plus the payroll factor plus the sales factor, and the denominator is three.
(4) Any taxes assessed upon any utility corporation pursuant to this section shall be in lieu of any and all other taxes under this chapter.
(5) All tax revenue collected under the provisions of this section shall be credited to the General Fund.