Special to the Transcript
The Massachusetts Legislature proudly passed a bipartisan comprehensive tax relief package aimed at bolstering the state’s economy and supporting long- term prosperity for all residents of the Commonwealth. “I am proud to support this well needed tax package to support working families in our Commonwealth.” stated Senator Edwards (D- East Boston).
The bipartisan bill includes some of the following tax changes that impact a lot of working families and in the 3rd Suffolk District including:
Permission for Municipalities to offer tax relief to landlords that rent below market.
Sen. Edwards, proposed legislation early this year that incentivized landlords to lower rents or continue renting below market. The tax package incorporates her language and allows cities and towns to create the tax exemption based on local needs of affordability. Working with Sen. Julian Cyr, the tax relief further incentivizes year-round rentals.
Provides for Seniors
• Allows cities and towns to increase the senior volunteer program to $2000. This means seniors can reduce their property taxes up to $2000 by volunteering.
• Doubles the maximum senior circuit breaker credit from $1,200 to $2,400. This increase will make it easier for approximately 100,000 seniors who struggle with high housing costs to stay in their homes.
Commuter Tax Relief
Allows commuters by ferry and bike to participate in the commuter expense tax deduction. Sen. Edwards made it special point to assure ferry commuters would be included.
Child and Dependent Tax Credit:
Increases the tax credit for a dependent child, disabled adult, or seniors for the next two tax- years and gets rid off a cap on this tax credit, making it the most generous universal child and dependent tax credit the United States.
Rental Deduction Tax
Increases the cap on how much a renter can receive in a tax credit. This change will support almost 800,000 renters in Commonwealth of Massachusetts.
Earned Income Tax Credit (EITC)
This bill increases the refundable Earned Income Tax Credit (EITC) from 30% to 40% of the federal credit. This increase will provide crucial support to working individuals and families, benefitting nearly 400,000 taxpayers with incomes under $60,000.
“We know it’s hard for many families to make it. We need to be pushing as much relief forward while still being able to pay for our public goods such as the MBTA. Still, I am very proud of what we got done overall for working families” stated Senator Edwards (D-East Boston).