Showing posts with label tax relief. Show all posts
Showing posts with label tax relief. Show all posts

Friday, September 29, 2023

MA House & Senate send FY 2024 tax relief bill to Gov Healey

"The House and Senate have passed a compromise tax relief bill that would provide $561 million in tax breaks and credits this year, with the value growing to approximately $1 billion once the law is fully implemented in 2027.

The House overwhelmingly approved the bill on Sept. 27, and the Senate did the same on Sept. 28. The governor, who has 10 days to review and sign the bill, has indicated her strong support.

Provisions that would affect municipalities include property tax relief and housing incentives. The bill would:
• Increase the maximum annual property tax deduction for seniors who provide volunteer services to a municipality from $1,500 to $2,000
• Increase the maximum available “senior circuit breaker” property tax credit from $750 per year to $1,500 per year, prior to adjusting for inflation
• Create a local-option property tax exemption for residential properties that are rented to households earning no more than 200% of area median income, and allow municipalities to determine the amount of the exemption and adopt ordinances and bylaws implementing these provisions
• Increase the cap on Housing Development Incentive Program tax credits from $10 million to $30 million annually and allow for the distribution of any portion of the annual cap on credits that were not authorized in previous years, or of any credits that were returned"

Continue reading the article online at MMA -> https://www.mma.org/house-senate-send-tax-relief-bill-to-governors-desk/ 

Boston Globe coverage (subscription maybe required) ->   https://www.bostonglobe.com/2023/09/28/metro/massachusetts-tax-relief-deal/ 

For the actual legislative language visit this page ->     https://malegislature.gov/Bills/193/H4104

FY 2024 Final Budget
https://malegislature.gov/Bills/193/H4104

Wednesday, September 27, 2023

Tax relief package set for MA House/Senate votes Weds/Thur

"Hailing it as a historic win for taxpayers, Massachusetts lawmakers will begin voting Wednesday on a $1 billion tax package that would boost tax breaks for families, seniors, and others while slashing state taxes on profits from short-term investments, a change that had divided Democrats.

The package would save hundreds of thousands of taxpayers a collective $561 million this fiscal year, according to legislative officials, with expectations that the total savings would eventually climb to just over $1.02 billion once it goes into full effect in fiscal year 2027, which begins July 1, 2026.

Its emergence follows nearly two years of debate and months of closed-door negotiations about how best to ease the burden on taxpayers squeezed by the state’s rising cost of living and bring the tax code more into line with other states.

The House is expected to vote on the measure Wednesday, and the Senate on Thursday, and it is expected to pass and move on to Governor Maura Healey, who has championed the need for tax relief."
Continue reading the article (subscription may be required)
https://www.bostonglobe.com/2023/09/26/metro/massachusetts-tax-relief/

Senate President Karen E. Spilka and House Speaker Ronald Mariano (right) unveiled the tax relief deal during a press conference in the Senate Reading Room.PAT GREENHOUSE/GLOBE STAFF
Senate President Karen E. Spilka and House Speaker Ronald Mariano (right) unveiled the tax relief deal during a press conference in the Senate Reading Room. PAT GREENHOUSE/GLOBE STAFF

Commonwealth Magazine provides their coverage ->



Saturday, June 17, 2023

MA Senate Unanimously Approves Bill for Progressive Tax Relief

Provides Significant Housing, Dependent Care, and Estate Tax Assistance  

The Massachusetts Senate unanimously approved on Thursday (6/15/23) a $590 million Tax Relief bill which delivers support to low- and middle-income earners and chips away  at the headwinds that threaten Massachusetts’ competitiveness. Focusing on providing relief to residents across Massachusetts while upholding fiscal responsibility, the Senate's tax relief package will provide relief to renters, seniors, and parents struggling with high early education costs while also increasing much-needed housing production. With the recent passage of the FY24 budget last month, the Commonwealth is now poised to secure and strengthen its economic foundation to weather future uncertainty. 

“As I have said from the outset, tax relief should go to the workers, families, and elderly residents of the Commonwealth who need it most,” stated Senate President Karen E. Spilka (D-Ashland). “Massachusetts doesn’t need just any tax relief; we need permanent, progressive, smart, and sustainable tax relief. Too many families have been caught between the rising costs of healthcare, housing, education, and basic goods. While we advance reforms to lower these costs and shore up our social services, meaningful tax relief is another tool in our kit to encourage people to live and raise their families in Massachusetts. I want to thank each of my Senate colleagues who contributed to this proposal, especially Senator Rodrigues and Senator Moran for their leadership in developing this strong package.” 

“While there has been calls for the Senate to act more swiftly on tax relief, my colleagues and I took a deliberative and practical approach to tax relief, centering our proposal on what we saw as major areas of concern to individuals and working families of the Commonwealth. Namely, providing critical housing assistance to the demographic that is most affected by housing instability and unaffordability; the 25-40 age group who are being priced out of the Commonwealth at an alarming rate. We need this group to remain in Massachusetts, put down roots, and buy a home of their own.” said Senator Michael J. Rodrigues, Chair of the Senate Committee on Ways and Means (D-Westport). 

“Consistent with the views of the Senate membership, our Senate tax package is forward-looking, fiscally sustainable, comprehensive, and progressive. It puts money back into the pockets of our residents, providing permanent tax cuts for low-income workers, families, renters, seniors, persons with disabilities, while focusing on the largest issue that is undercutting our Commonwealth’s overall competitiveness – which is the affordability and availability of housing. Thank you to my colleagues in the Senate, especially my colleagues on the Committee, whose advocacy, collaboration, and dedication helped to inform and shape this comprehensive tax relief proposal. A sincere thanks to the Ways and Means staff, whose seamless transition from the budget to this tax relief bill was truly remarkable. Lastly, a very warm and genuine thank you to Senate President Spilka for her determined and compassionate leadership as we work together to rebuild our economy and bolster our state’s long-term economic health.” 

"Working families aren’t leaving the Commonwealth because of taxes on day-traders," said
Senator Susan Moran, Chair of the Joint Committee on Revenue (D-Falmouth). "They are leaving because they can’t find housing they can afford. This package aimed at growing housing will also grow our workforce and the Commonwealth’s competitiveness." 

This package includes a variety of initiatives as tax relief for the residents of Massachusetts.

The bill: 
  • increases the Earned Income Tax Credit (EITC), which provides critical support to working families, from 30% to 40% of the federal credit   
  • merges existing credits into a new and enhanced Child and Dependent Tax Credit (CDTC), increases the amount of the credit from $180 to $310 per child/dependent, and eliminates the current cap of two children/dependents 
  • increases statewide cap for the Housing Development Incentive Program (HDIP) from $10 million to $57 million on a one-time basis and then to $30 million annually 
  • increases the cap on the rental deduction from $3,000 to $4,000 
  • raises annual authorization of the Low Income Housing Tax Credit, which directly supports the production of affordable housing units across the Commonwealth, from $40 million to $60 million  
  • doubles the maximum senior circuit breaker credit, which supports elderly residents who struggle with high housing costs, from $1,200 to  $2,400  
  • excludes homes valued at under $2 million from the Estate Tax and eliminates the “cliff effect” by allowing a uniform credit of $99,600 for all estates 
  • triples the maximum credit under the Title V Tax Credit, which supports families who must replace failed septic systems, from $6,000 to $18,000, and lifts the amount claimable to $4,000 per year 
  • increases the statewide cap for the Dairy Tax credit from $6 million to $8 million 
  • expands eligible occupations for the Apprenticeship Tax Credit  
  • doubles the credit for lead paint abatement to $3,000 for full abatement and $1,000 for partial abatement 
  • expands the types of alcoholic drinks which qualify for a lower tax rate as part of the cider tax 
Notably, this legislation ensures that student loan payment assistance offered by employers will not be treated as taxable compensation. The bill also adds regional transit fares and bike commuter expenses to the allowable commuter expenses eligible for favorable tax status.  

To encourage affordable housing, the bill gives municipalities the option of adopting a local property tax exemption for real estate that is rented to a person below a certain area-dependent income level. 

Additionally, the bill also directs the following studies: 
  • A study by the Executive Office of Administration and Finance on the feasibility of making advance quarterly payments of the Child and Dependent Tax Credit 
  • A study by the Department of Revenue on the efficacy of an additional, elective entity-level tax of up to 4 percent on a portion of qualified taxable income in the Commonwealth, coupled with a refundable credit, for eligible pass-through entities 
As different versions of this legislation have passed the Senate and the House of Representatives, a conference committee will now be appointed to resolve differences between the two bills.  


MA Senate Unanimously Approves Bill for Progressive Tax Relief
MA Senate Unanimously Approves Bill for Progressive Tax Relief

Friday, June 9, 2023

Senate President Spilka Statement on Tax Relief Package

Below, please find a statement from Senate President Karen E. Spilka (D-Ashland):

"As promised, the Senate's tax relief package is progressive, smart, sustainable and permanent—and it centers equity while chipping away at the headwinds that threaten our competitiveness," stated Senate President Karen E. Spilka (D-Ashland). "Everywhere I go, the two pressing issues I hear about the most, from employers and residents alike, are workforce and housing. Our tax relief package intentionally targets housing affordability so we can not only maintain our economic competitiveness but ensure our residents can stay where they want to work, live, raise families and pursue their dreams. I'm proud this proposal—which will help seniors, renters, parents with young children, and low-income workers and many others—is fiscally responsible and squarely focused on the hardworking people of the Commonwealth."

CommonWealth Magazine has covered of the Senate tax relief package ->

Direct link to the Senate proposal -> https://malegislature.gov/Bills/193/S2397

 

Senate President Karen Spilka and Senate Ways and Means Chair Michael Rodrigues. (Photo by Bruce Mohl)
Senate President Karen Spilka and Senate Ways and Means Chair Michael Rodrigues. (Photo by Bruce Mohl)

Tuesday, February 28, 2023

Senate President Karen Spilka Statement on Tax Relief

Statement from Senate President Karen E. Spilka (D-Ashland):

"Having consistently stated my support for permanent progressive tax relief, I am excited to see Governor Healey's proposal to provide much-needed financial relief to Massachusetts residents. While the Senate will need time to dive into the details, I am particularly pleased to see support for families, parents with childcare needs, seniors, and persons with disabilities reflected in this proposal. With affordability a top concern on everyone's minds, I look forward to continuing this conversation with my Senate colleagues and partners in the Administration and the House so that we can move forward with tax relief soon this session."