Lawmakers Reach Bipartisan Agreement on $1 Billion Tax Relief Package
Top lawmakers in Massachusetts have reached an agreement to lower the state's short-term capital gains tax by over 3% and reform the tax cap law to ensure equal rebates. The tax relief bill, described as historic and the largest bipartisan legislative tax relief proposal in over a generation, is expected to cost the state over $1 billion annually by fiscal 2027. The bill includes provisions such as increasing the rental deduction cap, boosting the tax credit for dependents, and raising the statewide cap for the Housing Development Incentive Program. Critics have raised concerns about certain provisions, including a "marriage penalty" and the reduction in the capital gains tax. The bill is set to be voted on in the House and Senate this week before being sent to Governor Maura Healey for approval.