We'd like to thank our own Senate President Karen Spilka for her leadership in passing historic tax relief legislation. As Sen. Spilka has said, "This is the most significant tax relief package in a generation (and will) put real dollars into the pockets of the people who need it most, including parents, seniors, young people, and middle class families who are struggling to keep up with rising costs."
This bipartisan effort includes several significant changes to tax policies. Notably, it increases the refundable tax credit for dependent children, disabled adults, and seniors, benefiting over 565,000 families. The estate tax is also updated, reducing it for all taxpayers and eliminating it for estates under $2 million. The Earned Income Tax Credit (EITC) is raised from 30% to 40% of the federal credit for individuals and families with incomes under $60,000. The bill also introduces a single sales factor apportionment for businesses and doubles the senior circuit breaker tax credit, affecting over 100,000 seniors.
Other changes include increasing the rental deduction cap, lowering the short-term capital gains tax rate, and expanding housing programs to create affordable housing and stimulate private investment in communities.
This tax relief package is a significant step to support residents and businesses in Massachusetts while making the state a more affordable and competitive place to live and work. It's aimed at providing financial relief to a wide range of people, from parents and seniors to middle-class families and those facing high rents or real estate taxes. The legislation reflects a bipartisan effort to address the needs of the state's residents and improve the overall economic environment in Massachusetts.
