August 6, 2010

Massachusetts Enacts Law to “Insource” More Jobs to the State
Correction of Double Tax Will Encourage More Foreign Investment

WASHINGTON, DC – Massachusetts Governor Deval Patrick signed into law this week an economic development bill, which includes a provision that will encourage global companies to invest in Massachusetts and “insource” more American jobs.  The new legislation corrects an obscure tax rule enacted in 2008 that imposed double taxation on the U.S. operations of companies headquartered abroad.  This rule was an unfair and discriminatory tax aimed at significant employers in the state – the U.S. operations of foreign companies employ over 178,000 workers or 6% of the total private-sector workforce in Massachusetts. 

“We are extremely pleased with the collaborative effort between the State Legislature and Governor to remove the discriminatory tax,” said Nancy McLernon, OFII President & CEO. “No one wants to pay their tax bill twice—and by supporting this correction, Massachusetts is once again opening its doors to furthering job creation and attracting more foreign based companies to the state.”

Massachusetts’ Insourcing Statistics:

• Insourcing Companies employ 178,400 workers in Massachusetts, or 6% of the total private-sector workforce.
• Massachusetts is ranked 10th in the U.S. in terms of the number of employees supported by Insourcing Companies.
• Insourcing companies are heavily invested in the Massachusetts’ manufacturing sector, directly employing 30,400 manufacturing jobs in the state.

INSOURCING COMPANIES IN MASSACHUSETTS
“Insourcing Companies” Defined: Companies Based Abroad Investing in the United States, Creating Jobs for Americans

AHOLD USA
AMEC
AMERICAN HONDA MOTOR CO., INC.
ARANATECH TECHNOLOGIES, LTD.
AREVA INC.
BAE SYSTEMS
BASF
BRIDGESTONE AMERICAS
BROTHER INTERNATIONAL CORPORATION
BT
COBHAM
DEUTSCHE TELEKOM
EMD SERONO, INC.
FLEXTRONICS INTERNATIONAL
GDF SUEZ ENERGY NORTH AMERICA
HSBC NORTH AMERICA HOLDINGS
ING AMERICA
INTERCONTINENTAL HOTEL GROUP
JOHN HANCOCK FINANCIAL SERVICES
LAFARGE NORTH AMERICA INC.
NATIONAL GRID
NESTLÉ USA, INC.
OLDCASTLE INC.
REED ELSEVIER
ROLLS-ROYCE NORTH AMERICA INC.
SAINT GOBAIN
SANOFI-AVENTIS
SAP AMERICA
SCHOTT CORPORATION
SIEMENS
SMITH & NEPHEW, INC.
SODEXO
SUN LIFE FINANCIAL U.S.
TAKEDA NORTH AMERICA
TATA GROUP
THOMSON REUTERS
TOTAL USA
TOYOTA MOTOR NORTH AMERICA
TYCO ELECTRONICS
TYCO INTERNATIONAL
UNILEVER
WOLTERS KLUWER
WPP GROUP USA
ZURICH NORTH AMERICA

The Organization for International Investment is a Washington-based business association representing U.S. subsidiaries of international companies headquartered abroad. For additional information, see OFII’s web site at www.ofii.org.