MA Economic Development Bill Includes Funding For Brookline Homes

BROOKLINE, MA — Last week, the Massachusetts House of Representatives passed an economic development bill that utilizes American Rescue Plan Act (ARPA) funding, FY22 surplus tax revenue, and bond revenue to make investments in Brookline and across the state.

The bill prioritizes equitable economic development programs while adding support for housing, seniors, and low-income residents by reforming the tax code. It includes two amendments filed by Rep. Tommy Vitolo, securing $175,000 for statewide Naturally Occurring Retirement Communities (NORCs) and $500,000 for kitchen modernization in Brookline Housing Authority units.

“Equitable economic development means supporting our residents in public housing, older adults, and low-income families,” Vitolo said in a statement. "I am always proud to partner with the Brookline Housing Authority and the NORCs coalition, including the Jewish Community Relations Council and Jewish Family and Children's Service, and look forward to seeing this funding put to work."

The $500,000 earmark secured by Vitolo for the Brookline Housing Authority will fund public housing kitchen modernizations, provided that all appliances are fossil-fuel-free.

In addition, the bill invests $75 million in minority-owned housing developments and $100 million in the Affordable Housing Trust Fund. It also secures a $73 million bond for the Housing Stabilization and Investment Trust Fund and a $400 million bond for the MassWorks Infrastructure competitive grant program for municipalities and public entities that support and accelerate housing production.

To support renters, the rental deduction cap is raised from $3,000 to $4,000.

"Increasing the rental deduction is essential to supporting the more than 50% of Brookline residents who are renters," Amanda Zimmerman, Co-founder of Brookline for Everyone, said in a statement. "I am also grateful that Rep Vitolo was a co-sponsor on Rep Vargas' ADU legalization amendment. Accessory Dwelling Units can serve as an important, lower-price housing option in our overheated market. We look forward to welcoming ADUs and other more affordable housing types in Brookline and throughout the Commonwealth."

"Unfortunately, the ADU amendment was not included in the final bill,” Vitolo said. "I will continue working alongside Rep. Vargas and others to expand this low-cost, low-carbon, pro-multi-generation-family, pro-historic-preservation housing option across the Commonwealth."

The $175,000 earmark secured by Vitolo for NORCs will fund the promotion healthy aging, independence, and community building by allowing older adults across the Commonwealth to continue living in their homes.

The legislation sets aside $30 million for rest homes as well and increases the maximum senior circuit breaker tax credit from $1,170 to $1,755. The senior circuit breaker allows taxpayers 65 years or older with low- or moderate-income to receive a credit equal to the amount by which the real estate tax payment for their primary residence exceeds 10 percent of their total income.

"With rising inflation costs, this increase to the Senior Circuit Breaker comes at a critical time,” Ruthann Dobek, Director of the Brookline Council on Aging and the Brookline Senior Center, said in a statement. "The increased tax credit will provide older adults with the relief they need to cover the cost of food, medical bills, and other necessities. I am grateful to Rep. Vitolo and the legislature for their work to support older adults."

Funds are allocated to support low-income families as well. A total of $25 million is dedicated to addressing food insecurity across the state. The proposal also expands the earned income tax credit (EITC) from 30 percent to 40 percent of the federal credit and families that qualify for the Child and Dependent Care Credit will now receive $310 per child instead of $180 per child with no two child limit.

The bill prioritizes equity in economic development by investing in small businesses, healthcare, and the environment. It will provide $125 million to small businesses, with $75 million to be allocated to minority-owned businesses.

In addition, it addresses public health issues by allocating $15 million for grants administered by non-profits and community-based organizations to address gun violence and related trauma and another $15 million for grants to reproductive health providers for security, workforce, and educational needs.

An additional $500 million is dedicated to environmental infrastructure and development with a focus on environmental justice communities.

“I am so tremendously proud to have played a part in this once-in-a-generation economic development package,” Rep. Danielle Gregoire, Chair of the Joint Committee on Bonding, Capital Expenditures and State Assets, said in a statement. “This well-balanced proposal provides significant, targeted investments in the sectors hardest hit by the pandemic, as well as meaningful changes to our tax code that will offer credits, rebates, and relief for all our residents. I am grateful to my colleagues and the Speaker for their efforts and look forward to the Governor’s signature.”

The bill also increased the estate tax threshold from $1 million to $2 million, eliminated the “cliff” effect by taxing just the value of the estate that exceeds $2 million, and increased the tax rate for the largest estates.

"I supported an amendment filed by Representative Uyterhoeven that would have ensured that no one pay tax on an estate valued under $2 million, eliminated the cliff, and left the tax rate on larger estates untouched,” Vitolo said. "Although that amendment was defeated, through conversations with House Ways and Means we were able to finalize language that was more progressive than the original proposal."

Lawmakers also included the tax rebates that were announced last week, directing one-time $250 payments to individual taxpayers who reported between $38,000 and $100,000 in income and joint filers who reported between $38,000 and $150,000 in 2021.

"While it's true that many taxpayers with income under $38,000 already received some direct support from the Commonwealth, I nevertheless supported an amendment filed by Representative Gouveia that would have removed the floor in order including taxpayers who reported less than $38,000. Unfortunately, the amendment failed on a voice vote on the House floor,” Vitolo said.

The bill will now go to the Senate before reaching the Governor's desk to be signed into law.