Bill > H2745

This bill aims to increase tax fairness by introducing several changes to the Massachusetts tax code. Specifically, it: 1. Allows taxpayers with federal adjusted gross income below certain thresholds ($50,000 for single filers, $100,000 for joint filers) to claim a personal exemption of up to $10,000 or $20,000 respectively, against their Part A (interest and dividends) and Part C (other) taxable income. 2. Maintains the 5.95% tax rate on Part A taxable income consisting of interest and dividends. 3. Maintains the 5.95% tax rate on Part C taxable income, except for gains from the sale of qualifying small business investments, which would be taxed at a 3% rate if held for at least 3 years. 4. Amends the rules for determining the initial basis of property acquired from a decedent after December 31, 2023, removing the application of certain federal tax code provisions. The overall goal of the bill is to provide tax relief for lower and middle-income Massachusetts residents, while also incentivizing investment in small businesses domiciled in the state.

Budget and Finance

https://malegislature.gov/Bills/193/H2745