Massachusetts Gov. Maura Healey, on Monday, proposed a $742 million tax relief package. The package includes relief for parents, renters and seniors, as well as other tax reforms. Of all the measures in the relief package, the $600 child tax credit from Massachusetts is the most important.
Child tax credit from Massachusetts: what is it?
On Monday, Gov. Healey introduced a $742 million tax relief package that includes a revamped child and family tax credit. This $600 child tax credit from Massachusetts is estimated to benefit over 700,000 taxpayers across the state.
Healey’s child and family tax credit is for children under 13, people with disabilities and senior dependents age 65 and older. This tax credit combines two existing benefits, including the Household Dependent Tax Credit and Dependent Care Tax Credit.
Moreover, the new child and family tax credit also removes the cap on dependents, as well as raises the benefits. This credit would help families keep up with the rising costs of child and senior care, as well as bring back more people into the workforce.
This child tax credit from Massachusetts would cost the state about $458 million for the next budget year and is the biggest measure in Healey’s proposal. Administration officials refer to the child tax credit the “centerpiece” of Gov. Healey’s anticipated tax package.
Healey’s tax relief package also proposes to raise the rental deduction, which is currently capped at 50% of rent up to $3,000, to $4,000. This relief measure would cost the state about $40 million and would help about 880,000 renters to offset the rising cost of housing.
Healey’s tax relief package also proposes doubling the senior circuit breaker credit from $1,200 to $2,400. This credit would help low-income seniors in 100,000 households with high property taxes or rent to stay in their homes.
Tax relief package: what else is in it?
Gov. Healey’s $742 million tax relief package also proposes to reduce the short-term capital gains tax from 12% to 5%. The package also proposes eliminating estate tax for all estates valued at up to $3 million with a credit of up to $182,000. This tax measure would reduce the tax burden on smaller estates.
“This proposal centers affordability, competitiveness and equity each step of the way, delivering relief to those who need it most and making reforms that will attract and retain more businesses and residents to our great state,” Gov. Healey said in a statement.
Last year, the House and Senate approved different tax relief bills. The bills, however, were shelved eventually, with lawmakers pledging to revisit the issue this year.
The primary objective of the tax relief package is to provide relief directly to families, seniors and those dealing with the high cost of housing. Gov. Healey’s tax relief package for Fiscal Year 2024 (FY24) will be filed on Wednesday as companion legislation to the administration’s FY24 budget.
This article originally appeared on ValueWalk
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