Massachusetts Tax Relief and Reform Package Finally Reaches Governor’s Desk For Signature

A long-awaited Massachusetts tax relief and reform package has reached the Governor’s desk after over a year of legislative discussions. It promises $561 million in relief for fiscal year 2024, potentially exceeding $1 billion by 2027.

Massachusetts Tax Relief and Reform Package. (Photo: 123RF)

Long-Awaited Massachusetts Tax Relief Package Reaches Governor’s Desk

According to WWLP, after over a year of negotiations, a long-awaited Massachusetts tax relief and reform package has reached the Governor’s desk for approval. This package, which aims to provide $561 million in Massachusetts tax relief for fiscal year 2024 and potentially over $1 billion by 2027, marks a significant achievement.

Governor Maura Healey, who had emphasized Massachusetts tax relief during her campaign, expressed support for the plan and looks forward to reviewing the details. The effort received bipartisan support, with only two dissenting votes from progressive Democrats in each chamber. The Governor has until October 8th to review the package.

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Debate Over Massachusetts Tax Relief Package and Future Revenue Challenges

According to NBC Boston, Senator Rebecca Rausch, despite voting in favor of the package, expressed concerns about its affordability and questioned how the state would handle revenue shortfalls. The Massachusetts tax relief plan encompasses a child and family tax credit, an estate tax threshold increase, a higher earned income tax credit, and changes to the senior circuit breaker tax credit and rental deduction cap.

It also lowers the short-term capital gains tax rate and alters tax calculations for multistate companies. The collaboration between legislative and gubernatorial efforts seeks to enhance Massachusetts’ competitiveness and affordability.

Moreover, Governor Maura Healey welcomed the legislative agreement and its tax relief provisions, including the Child and Family Tax Credit.  The Senate approved the conference report with a 38-1 vote, while the House previously approved it with a 155-1 vote. The compromise includes various tax relief measures, such as increasing the child tax credit and modifying estate tax thresholds. The Massachusetts tax relief and reform package aims to make Massachusetts more competitive and affordable.

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