Massachusetts Gov. Maura Healey signed a tax relief package Wednesday that is designed to deliver $561 million in reductions to taxpayers and companies during the current fiscal year through a slew of credits and other measures aimed at lowering tax burdens.
The package — which will top $1 billion in tax relief by the 2027 fiscal year when fully phased in — includes more than a dozen specific tax measures, including eliminating the tax for estates under $2 million.
It also will increase child and dependent tax credits from $180 to $330 per child or dependent in the current tax year to $440 next year.
“We are thrilled to deliver on our promise to pass tax cuts that will result in real savings for the people of Massachusetts, including the country’s largest child and family tax credit that will go back in the pockets of parents and caregivers,” Healey said after signing the bill at a Statehouse ceremony.
Lawmakers say the increased child tax credit will benefit 565,000 families.
The bill also increases the cap on rental deductions from $3,000 to $4,000, reduces the tax rate on short-term capital gains from 12% to 8.5% and allows cities and towns to adopt a local property tax exemption to encourage affordable housing.
State Sen. Karen Spilka has said a low-income household with two children will see its tax refund increase by more than $1,000.
House Speaker Ronald Mariano, a fellow Democrat, has praised a provision in the law that raises from $1,200 to $2,400 the maximum senior circuit breaker tax credit, a refundable credit for older adults based on real estate taxes or rent paid on residential property owned or rented as a principal residence.