BOSTON — The state Senate passed a $590 million tax relief package earlier this month and state Sen. John Cronin, D-Fitchburg, was among those casting a vote in support.
According to a press release from Cronin’s office, the bill increases the child and dependent tax credit from $180 to $310 per child. Additionally, it aims to simplify the child tax credit process by combining the Child Care Expenses Credit with the Dependent Member of Household Credit. The bill also doubles the senior circuit breaker tax credit, which is based on real estate taxes or rent individuals over 65 pay to $2,400 per senior.
For Gateway Cities like Fitchburg and Leominster, the Housing Development Incentive Program has been expanded, providing tax credits for developers building market-rate housing. The press release also states, “the backlog of previously approved projects by raising the annual cap from $10 million to $57 million for the next year, and then to $30 million per year going forward.”
As part of the bill, the value at which the estate tax is activated has been doubled from $1 million to $2 million. Municipalities will also be allowed to invoke local property tax exemptions for renters making less than 130% of area median income. The tax credit authorization for the low-income housing tax credit has been increased from $40 million to $60 million.
“The Senate’s plan will provide substantial relief to hardworking residents and families across the state and position our cities and towns to make the necessary investments to expand housing production, support families and caregivers, and ease the financial burdens on our seniors,” Cronin said. “This legislation is especially impactful for cities like Fitchburg and Leominster, who are critical in revitalizing our regional economies as we emerge from the pandemic. I look forward to working with my colleagues in the House to push this bill across the finish line and deliver for the residents of North Central Mass.”
The tax relief package will now head to a conference committee, where the House and Senate will work out a final version to send to Gov. Maura Healey’s desk for signature or veto.
