Governor Healey Approves Historic Tax Relief Bill: What You Need to Know

In a groundbreaking move, Governor Maura T. Healey has officially signed Massachusetts’ most significant tax cuts in over two decades, marking a $1 billion breakthrough. This robust package encapsulates many initiatives Governor Healey advocated for earlier this year. The most striking among them is the enhanced Child and Family Tax Credit, now the most generous nationwide. Additional modifications encompass the Rental Deduction, Senior Circuit Breaker Tax Credit, Estate Tax, and more.

To promote these sweeping changes, Governor Healey is initiating the “Cutting Taxes, Saving You Money” tour across Massachusetts. The journey starts with events in Gardner and Haverhill, celebrating the financial relief on the horizon for families and kids.

A Closer Look at the Tax Cuts

Child and Family Tax Credit: Removes the cap on two dependents, with an increase in credit for dependents that will benefit around 565,000 families.

Estate Tax: The threshold gets a bump from $1 million to $2 million.

Rental Deduction: The cap is up from $3,000 to $4,000.

Senior Circuit Breaker Tax Credit: This credit sees a doubling, which will be tied to inflation.

Housing Development Incentive Program (HDIP): Annual cap jumps significantly.

Short-Term Capital Gains: Rate drop from 12% to 8.5%.

Student Loan Assistance: Employer contributions for student loan repayments are now tax-exempt.

Property Tax: New provisions for seniors who volunteer, increasing tax abatement.

Several other credits and exemptions: These include the Earned Income Tax Credit (EITC), Dairy Tax Credit, Lead Paint Abatement Credit, and more.

Contact Logan & Logan LLP For Tax Guidance In Quincy, Massachusetts

This move by Governor Healey and her team is a decisive step toward fostering a more financially resilient and competitive Massachusetts. As with any significant legislation, residents and businesses are encouraged to consult with financial professionals to grasp the full impact of these changes on their financial planning. Logan & Logan is here to assist you and your family for any tax planning help and guidance. Our expers have your best interest in mind when it comes to taxes and saving money. Contact Logan & Logan LLP by filling out our form to get in touch with one of our tax planning specialists or call us at 6172093723.

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