What's In MA Tax Relief Proposal Floated By House Lawmakers

BOSTON, MA — State House leaders this week floated a counterproposal to a $750 million tax relief package offered by Gov. Maura Healey in February.

The House proposal hits many of the area's Healey's proposal does, but in different ways. The plan would cost an estimated $654 million in the first year, but that cost would rise to over $1 billion in coming years.

Here's a look at some key parts of plan, and how it compares to Healey's version:

Estate tax: Healey wanted to eliminate the estate tax on estates valued up to $3 million. The House proposal lowers that to $2 million, which is still an increase over the $1 million cap in place today.

Child, family tax credit: Healey proposed a new $600 tax credit for dependents. The House proposal would instead phase that in over the next four years starting at $310 in fiscal 2024 and rising to $614 by fiscal year 2027.

Rental reduction: Both the House plan and Healey plan would increase the amount renters can deduct in taxes from $3,000 to $4,000.

Senior circuit breaker: Healey proposed doubling the tax credit for low-income seniors from $1,200 to $2,400. The House plan is no different.

62F distribution: Many residents got a refund check in late 2022 base on the 1986 62F law, which requires the state to return excess revenue to taxpayers. The House package proposes any future 62F refund checks be equal across every taxpayer rather than based on how much taxes were paid.

The House version of the tax relief package will likely go for a vote on Beacon Hill Thursday. The proposal will then go to the Senate, which will craft its own proposal before sending a compromise version back to Healey for a signature.