Governor Healy Signs Tax Relief Bill Retroactive to January 1, 2023

The relief bill was signed on October 4, 2023.  Below is a snapshot of some of the changes:

  • Short term capital gains rate reduced to 8.5%
  • Single sales factor apportionment for MA businesses based solely on their sales receipts
  • Estate tax threshold increased to $2 million
  • Millionaire’s tax loophole closed requiring married couples that file a joint federal tax return to also file a joint MA tax return
  • Child and Dependent Tax Credit is combined with the Dependent Member of Household Credit and increases the new combined child and dependent tax credit to $310
  • Senior circuit breaker tax credit is doubled to $2,400 and future credits are indexed for inflation
  • Student loan repayment assistance exempts employer assistance from taxable income
  • Septic tax credit is tripled to $18,000, increases the percentage of eligible expenses to 60%, and allows taxpayers to claim up to $4,000 in any year