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.
WATCH ANYTIME FOR FREE
Stream NBC10 Boston news for free, 24/7, wherever you are. |
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 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.
Get updates on what's happening in Boston to your inbox. Sign up for our News Headlines newsletter.
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.
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.