Massachusetts lawmakers are debating this week whether to offer tax relief and rebates to residents amid the highest inflation rates seen in decades.
A $3.8 billion dollar spending bill was given initial approval by the Massachusetts House of Representatives on Monday, which calls for roughly one $1 billion in combined tax relief.
About half of that relief would come in the form of one-time rebates. The other half includes tax reforms that would take effect in 2023. Those tax breaks include an increase in the child or dependent care credit, while eliminating the child cap.
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The bill would also increase the earned-income tax credit, the senior circuit breaker tax credit and the rental deduction cap. These reforms would be permanent with no sunset date.
The bill would be partially funded by federal pandemic recovery funds and the state’s budget surplus. The House is expected to debate and pass the measure this week, after which it would go to the Senate.
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