Massachusetts House passes 9-figure tax cut package

The Massachusetts House overwhelmingly approved a $654 million tax relief package for the 2024 fiscal year Thursday. The bill, which passed on a 150-3 vote, is aimed at helping seniors, renters, businesses and wealthier homeowners while rewriting the law that sent about $3 billion back to taxpayers last year, according to Massachusetts House Speaker Ronald Mariano. The measure, which would result in $1.1 billion in savings for taxpayers in the 2026 fiscal year, would raise the state’s estate tax threshold from $1 million to $2 million. MASSACHUSETTS HOUSE SPEAKER UNVEILS $654M TAX CUT PLAN Massachusetts is one of just 12 states with an estate tax. Democratic Gov. Maura Healey, who released her own $742 million tax relief package in February, would eliminate the tax for estates valued up to $3 million. The House proposal would also make changes to the 1986 law designed to limit state tax revenue growth and return any excess to taxpayers. The law triggered nearly $3 billion in refunds last year. The credit is applied to the personal income tax liability on a proportional basis, resulting in higher credits for those who paid more in taxes. The bill would credit an equal amount per taxpayer. MASSACHUSETTS HOUSE UNVEILS $56.2B BUDGET PROPOSAL The House proposal would also combine the child care expenses credit with the dependent member of household credit to create one refundable $600 credit per dependent; double the tax credit for eligible seniors who own or rent property from $1,200 to $2,400; increase the rental deduction cap from $3,000 to $4,000; and boost the earned income tax credit from 30% to 40% of the federal credit. The package would also lower the short-term capital gains tax rate from 12% to 5% over two years and bulk up the state’s stabilization fund, also called the rainy day fund. The bill now heads to the Massachusetts Senate.
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