{"id":936,"date":"2023-09-27T10:19:30","date_gmt":"2023-09-27T14:19:30","guid":{"rendered":"https:\/\/www.senatorwaltertimilty.com\/?p=936"},"modified":"2023-09-27T10:19:30","modified_gmt":"2023-09-27T14:19:30","slug":"timilty-to-take-up-tax-relief-bill-in-senate","status":"publish","type":"post","link":"https:\/\/www.senatorwaltertimilty.com\/timilty-to-take-up-tax-relief-bill-in-senate\/","title":{"rendered":"Timilty to Take Up Tax Relief Bill in Senate"},"content":{"rendered":"

Tax Relief for Massachusetts<\/strong><\/h2>\n

Fact sheet and highlights<\/strong><\/em><\/h3>\n

On Thursday, my colleagues and I will be in a Formal Session to debate and vote on the tax relief bill, which has just been moved from the Conference Committee.<\/p>\n

Included here are highlights from the Conference Committee\u2019s report to provide tax relief to Massachusetts\u2019 residents and businesses and make the Commonwealth more affordable, equitable, and competitive. The total impact for fiscal year 2024 will be $561.3 million, with a $519.3 million on-budget impact. In fiscal year 2027, when fully phased in, the total impact will be $1.02 billion, with a $969.3 million on-budget impact.<\/p>\n

Child and Dependent Tax Credit<\/strong>
\n\u2022 Increases the tax credit for a dependent child, disabled adult, or senior from $180 to $310 in taxable year 2023, and then to $440 in taxable year 2024 and beyond, per dependent, while eliminating the child\/dependent cap.
\n\u2022This expanded credit, which will benefit more than 565,000 families, will be the most generous universal child and dependent tax credit in the country.<\/p>\n

Estate Tax<\/strong>
\n\u2022Reduces the estate tax for all taxpayers and eliminates the tax for all estates under $2 million by allowing a uniform credit of $99,600.<\/p>\n

Earned Income Tax Credit<\/strong>
\n\u2022Increases the earned income tax credit from 30% to 40% of the federal credit.
\n\u2022This increase will provide crucial support to working individuals and families, benefitting nearly 400,000 taxpayers with incomes under $60,000.<\/p>\n

Single Sales Factor<\/strong>
\n\u2022Moves from a sales tax apportionment system that factors in property, payroll, and sales to an apportionment that only considers sales, thereby removing a disincentive for Massachusetts companies to hire or grow in-state and making it more attractive for companies to headquarter in Massachusetts.<\/p>\n

Senior Circuit Breaker Tax Credit<\/strong>
\n\u2022Doubles the maximum senior circuit breaker credit from $1,200 to $2,400,
\n\u2022This increase will make it easier for approximately 100,000 seniors who struggle with high housing costs to stay in their homes.
\nRental Deduction
\n\u2022Increases the cap on the rental deduction from $3,000 to $4,000.
\n\u2022This change will support approximately 800,000 renters across the Commonwealth.<\/p>\n

Short Term Capital Gains<\/strong>
\n\u2022Reduces the tax rate on short-term capital gains from 12% to 8.5%.
\nHousing Development Incentive Program (HDIP)
\n\u2022Increases the statewide cap from $10M to $57M one-time, and then to $30M annually.
\n\u2022This increase will create an estimated 12,500 new homes in Gateway Cities, spurring over $4 billion of private investment in these communities.<\/p>\n

Low-Income Housing Tax Credit<\/strong>
\n\u2022Raises the annual authorization from $40M to $60M.
\n\u2022This increased authorization cap provides enough funding to spur the creation of thousands of new units of affordable housing annually while also bolstering economic activity and ancillary market-rate housing.<\/p>\n

Local Option Property Tax Exemption for Affordable Housing<\/strong>
\n\u2022Permits municipalities to adopt a local property tax exemption for affordable real estate that is rented by a person whose income is less than a certain income level set by the community.<\/p>\n

Title V Cesspool or Septic System Tax Credit<\/strong>
\n\u2022Triples the maximum credit available from $6,000 to $18,000 and increases the amount claimable to $4,000 per year, easing the burden on homeowners facing the high cost of septic tank replacement or repair.<\/p>\n

Additional Tax Changes<\/strong>
\n\u2022Lead Paint Abatement: Doubles the credit to $3,000 for full abatement and $1,000 for partial abatement, to support families with older homes.
\n\u2022Dairy Tax Credit: Increases the statewide cap from $6M to $8M, to provide more assistance for local farmers during downturns in milk prices.
\n\u2022Student Loan Repayment Exemption: Ensures that employer student loan payments are not treated as taxable compensation.
\n\u2022Commuter Transit Benefits: Makes public transit fares, as well as ferry and regional transit passes and bike commuter expenses, eligible for the commuter expense tax deduction.
\n\u2022Apprenticeship Tax Credit Reforms: Expands the occupations for which this workforce development credit is available.
\n\u2022Cider Tax: Raises the maximum amount of alcohol for these classes of drinks to 8\u00bd%, allowing more locally produced hard cider and still wines to be taxed at a lower rate.
\n\u2022Senior Property Tax Volunteer Program: Increases from $1,500 to $2,000 the maximum that municipalities may allow for certain seniors to reduce from their property tax by participating in the senior work-off program.<\/p>\n

Policy Highlights<\/strong>
\n\u2022Requires payments made if Chapter 62F is triggered to be paid out equally among taxpayers.
\n\u2022Requires 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.<\/p>\n","protected":false},"excerpt":{"rendered":"

Tax Relief for Massachusetts Fact sheet and highlights On Thursday, my colleagues and I will be in a Formal Session … <\/i>Read More<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/posts\/936"}],"collection":[{"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/comments?post=936"}],"version-history":[{"count":1,"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/posts\/936\/revisions"}],"predecessor-version":[{"id":937,"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/posts\/936\/revisions\/937"}],"wp:attachment":[{"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/media?parent=936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/categories?post=936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.senatorwaltertimilty.com\/wp-json\/wp\/v2\/tags?post=936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}