BOSTON (WWLP) – The House Democrats rolled out their long awaited tax relief bill Tuesday, delivering $645 million dollars in relief for fiscal year 2024.
The plan would then provide $1.1 billion dollars in tax relief in Fiscal year 2026 and beyond. The goal of this package is to provide all Massachusetts residents, regardless of income status, with relief.
A portion of the bill, that is expected to impact over 700,000 residents is the child and dependent tax credit. If passed, the proposal would be phased in over three years and be fully implemented in 2027, at which point taxpayers could claim $614 dollars per dependent.
The House is also on board with increasing the estate tax threshold from $1 million to $2 million dollars. House leaders have also proposed cutting the state’s short term capital gains tax from twelve percent to five percent over a two year period.
In addition to the tax relief, the house is also looking to reform Chapter 62F, the law which triggered nearly $3 billion dollars in taxpayer refunds last year. As the law currently stands, refunds are based proportionally to income, but the house is looking to adjust the credit to an equal amount among all taxpayers.
The House plans to take this proposal up for a vote on Thursday.