Bill > H3073

This bill enhances tax credits for families by making several key changes to Massachusetts state tax law. It increases the percentage of the federal Earned Income Tax Credit (EITC) from 40% to 50% and allows taxpayers to claim the credit using either a Social Security Number or an Individual Taxpayer Identification Number (ITIN), which expands eligibility for immigrant families. The bill also introduces a progressive credit structure where families with more than three qualifying children will receive an additional 5 percentage points of credit per child. Additionally, the legislation provides a $600 credit for dependents, including those who are elderly, disabled, or qualify under specific IRS code sections, and establishes a mechanism for advance payments of these credits. The bill requires the Department of Revenue to create multilingual informational resources about tax credits, collaborate with various organizations to disseminate information, and ensure that employers post notices about available tax credits. These changes aim to support low-income families, reduce poverty, and increase access to tax benefits for a broader range of residents, with the provisions set to take effect for tax years beginning on or after January 1, 2025.

Budget and Finance

https://malegislature.gov/Bills/194/H3073