Today, I joined my colleagues in approving a tax relief package that will overwhelmingly support working families, young professionals, and elders in our communities. While I do not agree with every measure included in the final bill, it will go a long way in making the Commonwealth more affordable, equitable, and competitive.
We still have work to do, but this bill moves us in the right direction.
We focused on:
Child and Dependent Tax Credit: Increases credits to $310 in 2023 then up to $40 in 2024 and beyond. Eliminates the child/dependent cap.
Earned Income Tax Credit (EITC): Increases the state match of EITCH to 40% of the federal tax credit
Policy on Married Taxpayers: Requires married taxpayers who file a joint return with the federal government to file a joint state return, subject to exemptions or adjustments promulgated by the Department of Revenue
Estate Tax: Reduces the estate tax for all taxpayers and eliminates the tax for all estates under $2 million by allowing a uniform credit of $99,600
Senior Circuit Breaker Tax Credit: Doubles the maximum tax credit for income-eligible seniors from $1,200 to $2,400
Senior Property Tax Volunteer Program: Increases from $1,500 to $2,000 the maximum amount that municipalities may allow for certain seniors to reduce from their property tax by participating in the senior work-off program
Rental Deduction: Increases the maxumum rent deduction from $3,000 to $4,000
Low Income Housing Tax Credit: Raises the annual authorization cap from $40M to $60M to spur the creation of thousands of new units of affordable housing annually while also bolstering economic activity and ancillary market-rate housing
Policy on 62F Payments: requires payments made when Chapter 62F is triggered to be paid out equally amongst taxpayers.
Additional tax provisions in the tax bill:
Local option property tax exemption for affordable housing
Title V Cesspool or Septic System Tax credit
Lead paint abatement increase
Statewide cap increase of the Dairy Tax Credit
Student loan repayment exemption
Commuter transit deduction expansion
Apprenticeship Tax Credit Expansion
Cider Tax reform
Reform to a Single Sales Factor Apportionment
Short Term Capital Gains Reduction
Statewide Cap Increase of the Housing Development Incentive Program
For more details, contact: giselle.riveraflores@masenate.gov
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