Supporting Omnibus Tax Relief
In September I joined with colleagues to approve a comprehensive tax package that will provide significant financial relief to Massachusetts residents and businesses. Under a phased-in approach, the series of tax reforms in this bill is expected to produce $561 million in savings for taxpayers this fiscal year and an estimated $1.02 billion in savings once the changes are fully implemented in 2026. These savings include increases in the child and dependent tax credit, the rental deduction cap, and the Earned Income Tax Credit. The Senior Circuit Breaker tax credit is also doubled, while the estate tax threshold is increased from $1 million to $2 million. In addition, the bill triples the maximum allowable Title V tax credit for homeowners repairing or replacing their septic tanks (from $6,000 to $18,000) and also increases the amount that can be claimed to $4,000 per year – critical relief for homeowners here in the 5th Barnstable District and throughout Cape Cod.