What's in the FY25 Budget?
The recently signed FY25 budget includes several items for taxpayers to note. The personal income tax will now conform to the Internal Revenue Code as in effect on January 1, 2024. The Budget also included an exception to the consistent filing requirement for individuals who would not otherwise be required to file a return based on their income level and a tax amnesty program that will be administered by DOR. Additional guidance about what was included in the budget is forthcoming.
Tax Amnesty Coming Soon
The FY25 budget provided for a 60-day tax amnesty program for Massachusetts taxpayers, with details to be determined by DOR. The amnesty will waive penalties for eligible taxpayers who voluntarily file proper returns and pay the total amount of delinquent taxes owed. More information, including the dates of the program, will be coming soon.
Recently-Passed Affordable Homes and HERO Acts
We wanted to share some tax highlights from the recent housing and veterans’ legislation.
- The Affordable Homes Act includes a tax credit for converting commercial real estate to residential (effective January 1, 2025), a 3-year extension of the Massachusetts Historic Rehabilitation Tax Credit through 2030, and an increase to the annual cap on that credit from $55M to $110M.
- The HERO Act for veterans includes two local option enhancements, including a change in the determination of whether a disabled service member is eligible for the exemption from the motor vehicle excise, and an option for the municipality to double the property tax exemption. Additionally, there is an increase to the veterans hire credit from $2,000 to $2,500 per qualified veteran hired.
Post-Sales Tax Holiday Tips
With the Sales Tax Holiday Weekend behind us, if you feel that you were mistakenly charged tax on your purchases during the exemption period, please do the following:
- Confirm that your purchase(s) met the guidelines for exemption from sales tax
- Reach out to the business with your receipt for a refund
You can read more about what to do after the sales tax holiday on the FAQ page.
Tobacco Retailer License Renewal Period Now Open
The license renewal deadline for tobacco retailers and distributors is September 30, 2024. You can visit MassTaxConnect now to begin the process. All current licenses expire on September 30, 2024.
Dates to Remember
Mark your calendars for some upcoming due dates:
9/15/24 – Estimated Payments – third quarter
Prior DOR News issues
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