- Governor Maura Healey and Lt. Governor Kim Driscoll
Media Contact for Healey-Driscoll Administration Celebrates Tax Cut Savings for Children and Families
Karissa Hand, Press Secretary
Boston — Today, Governor Maura T. Healey and Lieutenant Governor Kim Driscoll visited Gardner Elementary School and the Haverhill YMCA to celebrate the nation’s most generous Child and Family Tax Credit. The tax credit Governor Healey signed into law yesterday is part of a $1 billion package that encompasses Massachusetts' first tax cuts in more than 20 years. Today’s visits are the first in the administration's Cutting Taxes, Saving You Money tour.
“We are incredibly excited to deliver tax cuts to families across Massachusetts, and we’re especially proud to have included the largest Child and Family Tax Credit in the country,” said Governor Healey. “This tax cuts bill puts money back in the pockets of families and provides them relief as they manage the rising costs of living. Not only will this tax cuts bill save families money, it also delivers savings for seniors, renters, businesses and more. We’re thankful for the partnership of our Legislative leadership for their work getting this done.”
“These tax cuts allow us to deliver relief to thousands of people in Massachusetts — from families, seniors, renters, businesses and commuters. We’re so excited to have kicked off our Cutting Taxes, Saving You Money tour celebrating the nation’s most generous child and family tax credit,” said Lieutenant Governor Driscoll. “We’re looking forward to traveling across the state to make sure that everyone knows that savings are here and they’re coming your way.”
Provisions of the tax cuts package that will save children and families money include:
Child and Family Tax Credit – Eliminates the two-dependent cap and increases the credit from $180 per dependent child, disabled adult, or senior to $310 for 2023 and to $440 on a permanent basis, starting in 2024. An estimated 565,000 families will benefit, and this will be the most generous universal child and dependent tax credit in the county. If you have two kids 12 or under, you’ll be getting $880 back in next year’s taxes. If you have three kids, you’ll be getting $1,320, where before you only got $360. And, if you care for a dependent adult, you will get that same $440 payment for them, every single year.
Earned Income Tax Credit – Increases credit from 30% to 40% of the federal credit. If your income is under $60,000, your state Earned Income Tax Credit is going up, from 30% to 40% of the federal credit. With two or three children, you could now be looking at a combined federal and state credit of close to $10,000.
Rental Deduction – Increases the amount of rent that you can deduct from $3,000 to $4,000. The total credit could be up to $200 per year.
Commuter Transit Benefits – Adds regional transit authority (RTA) fares and bicycle expenses – including e-bikes and bicycle improvements, repair, and storage – to deductible commuter expenses. Commuters can now deduct up to $750 in expenses.
Student Loan Repayment Assistance – Exempts assistance offered by employers for student loan repayment from taxable income.
"I am honored to welcome Governor Healey and Lieutenant Governor Driscoll to Haverhill to announce this significant piece of legislation,” said Mayor of Haverhill James J. Fiorentini. “This tax bill will provide real relief for working families of Haverhill, including renters, senior citizens, low-income earners and parents of children. The City will work with the administration using ARPA and CARES Act funds to provide relief for families who need quality childcare so parents can remain gainfully employed.”
“Speaking not only as a Mayor, but as a new homeowner, a recent graduate, and someone in their 20s- the affordability of goods and services is the key issue people are facing right now. In recent times, we’ve seen historic investments in education, infrastructure, the environment, housing, and so much more,” said Mayor of Gardner Michael J. Nicholson. “Today, we celebrate a direct investment in our residents and set them up for a stronger financial future. Massachusetts is a leader in the nation in so many areas, and I’m proud that it’s now leading the nation in so many other ways through these tax cuts- from increases child and dependent tax credits to Property Tax Liability Reduction for Senior Volunteer Services. Initiatives like these help make our state more competitive and give people in my generation a reason to stay here in Massachusetts and continue to call this our home. I’m proud to stand with Governor Healey and Lt. Governor Driscoll as they begin their tour across the Commonwealth to spread awareness of what these tax cuts mean to individuals and families, and it was an honor to host their first stop in Gardner.”
Yesterday’s tax bill signing also included necessary support for our seniors through the expansion of the senior circuit breaker tax credit, various rental deduction, shorten the capital gain tax and much more. Additional visits will be planned in the coming days to celebrate relief for seniors, businesses, residents and more.