A $742 million tax relief plan was revealed by Governor Maura Healey on Monday. It includes a revised child and family tax credit that will help more than 700,000 Massachusetts households.
The revised child and family tax credit is part of Gov. Healey’s $742 million tax relief package, which was unveiled on Monday. Almost 700,000 individuals are expected to benefit from Massachusetts’ $600 child tax credit.
Massachusetts’ Tax Relief Program
Children under the age of 13, persons with disabilities, and senior dependents aged 65 and older are eligible for Healey’s child and family tax credit. The Household Dependent Tax Credit and the Dependent Care Tax Credit are two existing advantages that are combined in this tax credit.
Also, the new child and family tax credit increases benefits and lifts the limit on dependents. This credit would encourage more people to return to the workforce and assist families in covering the escalating costs of child and senior care.
The largest component of Healey’s proposal, the child tax credit from Massachusetts would cost the state $458 million in the upcoming fiscal year. The child tax credit is referred described as the “centerpiece” of Gov. Healey’s projected tax package administration officials.
In an effort to reduce the high housing costs for 880,000 renters, Healey wants to boost the rental deduction threshold from $3,000 to $4,000. According to administration officials, the modification would cost the state $40 million.
Gov. Healey Urges To Support Low-Income Seniors
Healey suggests increasing the senior circuit breaker credit from $1,200 to $2,400 to assist low-income seniors who must pay high property taxes or rent. According to officials, the $60 million proposal might assist 100,000 homes.
The new administration would reform the estate tax as a crucial measure to increase Massachusetts’ economic competitiveness. Healey’s proposal would limit the tax to estates with a value of more than $3 million.
Also, there would be a nonrefundable credit of up to $182,000 as a way to combat the existing estate tax’s so-called cliff effect, where the tax begins to accrue at the first dollar.
The existing $1 million estate tax threshold makes Massachusetts an outlier and might force wealthy citizens out, economists and Beacon Hill lawmakers have long warned.
According to Healey’s proposal, the short-term capital gains tax would be reduced from 12% to 5% in order to increase the competitiveness of the Commonwealth. More than 150,000 people would benefit from consistency from the move, which is in line with the long-term capital gains tax rate, according to officials.
Healey has also suggested increasing benefits for commuter transit, the apprenticeship tax credit, the credit for septic tank repairs, the credit for the removal of lead paint, and the dairy credit, among other things. She also wants to establish a new tax credit for live theater and an exemption from school loan repayment.
Healey and Driscoll made a strong case for expanding state tax credits for the construction of market-rate housing in Gateway Cities, including Springfield, Holyoke, and Chicopee, which are considered regional catalysts for economic development, at a press conference held in Lynn on Monday morning.
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