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‘Money back in pockets’: New tax bill takes effect in Massachusetts in 2024

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‘Money back in pockets’: New tax bill takes effect in Massachusetts in 2024


BOSTON — The calendar officially flipped to 2024 at midnight on Monday and that meant a new tax law would take effect in Massachusetts.

In October, Gov. Maura Healey signed a new bill into law that will bring hundreds of millions of dollars in relief to taxpayers.

The entire tax relief package carries a financial impact of about $561 million this fiscal year and more than $1 billion annually starting in fiscal year 2027, according to state officials.

Since taking office, Healey has been pushing for tax reform, repeatedly stressing the need to make the cost of living more affordable to families.

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“We are thrilled to deliver on our promise to pass tax cuts that will result in real savings for the people of Massachusetts, including the country’s largest child and family tax credit that will go back into the pockets of parents and caregivers,” Healey said after signing the bill. “Everywhere we go, we hear about how people are struggling to keep up with the rising cost of living. This tax package delivers savings for those who need it most while making long overdue changes that will better allow Massachusetts to compete with other states.”

The bill expands tax credits for parents and caregivers, reduces the estate tax, increases the earned income tax credit, and boosts breaks for renters, seniors, and low-income families, among other things.

“These tax cuts translate to real money back in the pockets of the people of Massachusetts every single year,” Lieutenant Governor Driscoll said. “Families, seniors, renters, businesses, and commuters will see hundreds of dollars in savings each year. Governor Healey and I look forward to spreading the word across the state that savings are here for the people of Massachusetts.”

The bill also requires payments made if Chapter 62F is triggered to be paid out equally amongst taxpayers and requires married taxpayers who file a joint return with the federal government to file a joint state return, subject to exemptions or adjustments promulgated by the Department of Revenue.

Here’s a full breakdown of the coming tax changes:

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Child and Dependent Tax Credit

  • Increases the tax credit for a dependent child, disabled adult, or senior from $180 to $310 in taxable year 2023, and then to $440 in taxable year 2024 and beyond, per dependent, while eliminating the child/dependent cap.
  • This expanded credit, which will benefit more than 565,000 families, will be the most generous universal child and dependent tax credit in the country.

Estate Tax

  • Reduces the estate tax for all taxpayers and eliminates the tax for all estates under $2 million by allowing a uniform credit of $99,600.

Earned Income Tax Credit

  • Increases the earned income tax credit from 30% to 40% of the federal credit.
  • This increase will provide crucial support to working individuals and families, benefitting nearly 400,000 taxpayers with incomes under $60,000.

Single Sales Factor

  • Moves from a sales tax apportionment system that factors in property, payroll, and sales to an apportionment that only considers sales, thereby removing a disincentive for Massachusetts companies to hire or grow in-state and making it more attractive for companies to move headquarters in Massachusetts.

Senior Circuit Breaker Tax Credit

  • Doubles the maximum senior circuit breaker credit from $1,200 to $2,400.
  • This increase will make it easier for approximately 100,000 seniors who struggle with high housing costs to stay in their homes.

Rental Deduction

  • Increases the cap on the rental deduction from $3,000 to $4,000.
  • This change will support approximately 800,000 renters across the Commonwealth.

Short-Term Capital Gains

  • Reduces the tax rate on short-term capital gains from 12% to 8.5%.

Housing Development Incentive Program (HDIP)

  • Increases the statewide cap from $10M to $57M one-time, and then to $30M annually.
  • This increase will create an estimated 12,500 new homes in Gateway Cities, spurring over $4 billion of private investment in these communities.

Low-Income Housing Tax Credit

  • Raises the annual authorization from $40M to $60M.
  • This increased authorization cap provides enough funding to spur the creation of thousands of new units of affordable housing annually while also bolstering economic activity and ancillary market-rate housing.

Local Option Property Tax Exemption for Affordable Housing

  • Permits municipalities to adopt a local property tax exemption for affordable real estate that is rented by a person whose income is less than a certain income level set by the community.

Title V Cesspool or Septic System Tax Credit

  • Triples the maximum credit available from $6,000 to $18,000 and increases the amount claimable to $4,000 per year, easing the burden on homeowners facing the high cost of septic tank replacement or repair.

Additional Tax Changes

  • Lead Paint Abatement: Doubles the credit to $3,000 for full abatement and $1,000 for partial abatement, to support families with older homes.
  • Dairy Tax Credit: Increases the statewide cap from $6M to $8M, to provide more assistance for local farmers during downturns in milk prices.
  • Student Loan Repayment Exemption: Ensures that employer student loan payments are not treated as taxable compensation.
  • Commuter Transit Benefits: Makes public transit fares, as well as ferry and regional transit passes and bike commuter expenses, eligible for the commuter expense tax deduction.
  • Apprenticeship Tax Credit Reforms: Expands the occupations for which this workforce development credit is available.
  • Cider Tax: Raises the maximum amount of alcohol for these classes of drinks to 8½%, allowing more locally produced hard cider and still wines to be taxed at a lower rate.
  • Senior Property Tax Volunteer Program: Increases from $1,500 to $2,000 the maximum that municipalities may allow certain seniors to reduce their property tax by participating in the senior work-off program.

To read more about this bill, click here.

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New Bedford MS-13 Member, Illegal Alien Pleads Guilty to Role in Brutal Murders In Massachusetts, Virginia

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New Bedford MS-13 Member, Illegal Alien Pleads Guilty to Role in Brutal Murders In Massachusetts, Virginia


A 28-year-old Salvadoran national and admitted member of the MS-13 gang, who was living unlawfully in New Bedford, Massachusetts, pleaded guilty in federal court in Boston to his role in three brutal murders committed to advance the gang’s violent agenda across Massachusetts and Virginia.

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Police shoot and kill man armed with knife in Lexington, DA says

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Police shoot and kill man armed with knife in Lexington, DA says


Police shot and killed a man who officials say rushed officers with a knife during a call in Lexington, Massachusetts, on Saturday.

Middlesex County District Attorney Marian Ryan said the situation started around 1:40 p.m. when Lexington police received a 911 call from a resident of Mason Street reporting that his son had injured himself with a knife.

Officers from the Lexington Police Department and officers from the Northeastern Massachusetts Law Enforcement Council (NEMLEC), who were already in town for Patriots’ Day events, responded to the call.

Police were able to escort two other residents out of the home, initially leaving a 26-year-old man inside. According to Ryan, while officers were setting up outside, the man ran out of the home and approached officers with a large kitchen knife.  

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She added that police tried twice to use non-lethal force, but it was not effective in stopping him. The man was shot by a Wilmington police officer who is a member of NEMLEC. The man was pronounced dead on scene and the officer who fired that shot was taken to a local hospital as a precaution.

The man’s name has not been released.

Ryan said typically in a call like this where someone was described as harming themselves, officers would first try to separate anyone else to keep them out of danger, which was done, and then standard practice would be to try to wait outside.

“It would be their practice to just wait for the person to come out. In the terrible circumstances of today, he suddenly rushed the officers, still clutching the knife,” Ryan said.

The investigation is still in the preliminary stages and more information is expected in time. Ryan said her office will request a formal inquest from the court to review whether any criminal conduct has occurred, which is the standard process.

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This happened around the same time as the annual Patriots’ Day Parade, and just hours after a reenactment of the Battle of Lexington, which drew large crowds to town.

This is a developing story. Check back for updates.



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‘An impossible choice’: With little federal help to combat rising costs, Head Start looks to Massachusetts for more help – The Boston Globe

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‘An impossible choice’: With little federal help to combat rising costs, Head Start looks to Massachusetts for more help – The Boston Globe


In Massachusetts, roughly 1,300 slots for children across Head Start’s 28 agencies have been eliminated in the last three years because federal funding has plateaued over that time, while the cost of running the program continues to rise, according to the Massachusetts Head Start Association. Nationally, Head Start enrollment dropped from 1.1 million kids in 2013 to around 785,000 in 2022, according to research by the Annie E. Casey Foundation.

“If they didn’t get into a Head Start program, they would be sitting at home,” said Brittany Acosta, a Head Start parent in Dorchester.

It’s teachers are drastically underpaid, and there’s a serious need for a rainy day-type fund should the federal government shut down again, the association says. As they’ve done in years past, state lawmakers have offered to provide financial relief, but the Massachusetts Head Start Association’s request for 3 percent above the amount it received last year, an additional $4.6 million to help its staff keep up with the state’s rising cost of living, so far has not been allocated.

Violeta, Tyler, and Dimitrius (all 4 years old) play together at the ABCD Dorchester Head Start.Andrew Burke-Stevenson/for The Boston Globe
While looking in a mirror, Kadijah, 3, puts on a toy mail carrier hat.Andrew Burke-Stevenson/for The Boston Globe

Last year, President Trump’s leaked budget proposal revealed he considered eliminating Head Start entirely. Then, in the summer, he cut off Head Start enrollment for immigrants without legal status. And during the fall’s government shutdown, four Head Start centers in Massachusetts closed because they couldn’t access their funding.

Trump’s latest budget proposal shows a fourth year without increasing funding for the program, which was established in the mid-1960s.

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Michelle Haimowitz, executive director of the Massachusetts Head Start Association, said the program doesn’t want to eliminate more child slots than it already has, but paying teachers a competitive salary is equally important in order to keep them from leaving for higher paying jobs. Head Start teachers make under $50,000 annually compared to over $85,000 for the average Massachusetts kindergarten teacher.

“It’s an impossible choice,” Haimowitz said. “When we reduce the size of our programs, we’re not reducing the size of the need.”

Michelle Haimowitz, MHSA, moderator of panel with Massachusetts State Representative Chris Worrell, 5th Suffolk District.David L. Ryan/Globe Staff

Massachusetts is one of few states that supplements federal funding for Head Start, and last year it increased the program’s state grant from $5 million to $20 million, adding to the $189 million in federal aid it receives in this state.

“We can’t run a program without giving staff a raise for three years,” Haimowitz said. “Our next fight now is not just for survival, but it’s for thriving and growth.”

The Massachusetts House Ways and Means Committee on Wednesday released its budget, which doesn’t grant Head Start’s request of a 3 percent boost. But state Representative Christopher Worrell filed an amendment for additional funding. Worrell, whose district covers parts of Dorchester and Roxbury, said he loves Head Start’s embrace of culture, recalling one visit to a center where he could smell staff cooking stew chicken, a traditional Caribbean dish.

“I’ve been to dozens of schools throughout the district, and you don’t get that home-cooked meal,” Worrell said. “[The state is] stepping up and doing the best we can with what we have.”

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Nylah, 3, holds a hula hoop as pre-school teacher Leolina Rasundar Chinnappa (right) and Hasiet, 4, play catch.Andrew Burke-Stevenson/for The Boston Globe
Assistant teacher Paola Polanco (center) helps Annecataleeya (left) pour milk into a glass while Violeta (right) scoops cereal during breakfast.Andrew Burke-Stevenson/for The Boston Globe

At the Action for Boston Community Development’s Head Start and Early Head Start center in Dorchester, the children of Classroom 7 arrived one Monday morning and dove into bins of magnetic tiles before their teachers, Paola Polanco and Leolina Rasundar Chinnappa, served breakfast. Acosta dropped off her 4-year-old daughter, Violeta, before reporting to her teaching position at the center, where several other Head Start parents also work.

“It’s important for all Head Start parents to have the opportunity to give their child an experience in a learning environment before they actually start kindergarten,” Acosta said.

Beyond providing early education and care to children of low-income families, from birth to age 5, the program helps them access other resources, including mental health services, SNAP benefits, homelessness assistance, and employment opportunities.

It also serves as daycare for parents who might not be able to afford it, while they’re at work.

Research has shown the importance of preschool in a child’s development with one 2023 study, focused on Boston public preschools, finding that it improves student behavior and increases the likelihood of high school graduation and college enrollment.

Massachusetts State Representative Chris Worrell (center), 5th Suffolk District, notes during a meeting on the panel at ABCD Dorchester Head Start and Early Head Start.David L. Ryan/Globe Staff

For Rickencia Clerveaux and Christopher Mclean, the Dorchester Head Start center is the only place they feel comfortable sending their 3-year-old son, Shontz, who is on the autism spectrum. Shontz’s stimming — repetitive movements that stimulate the senses — has reduced, and his speech has improved since he joined the center in 2024, Clerveaux said.

Rickencia Clerveaux, ABCD Head Start parent, talks about her children during the meeting held at ABCD’s Dorchester Head Start and Early Head Start in Boston.David L. Ryan/Globe Staff

His parents say he’s also come out of his shell. Mclean now drops his son off and gets a simple “bye” as Shontz joins his classmates, he said.

He and Clerveaux said they appreciate the specialized attention Shontz can receive from teachers, such as when staff identified that Shontz might have hearing issues. His parents were able to follow up with their doctor and get Shontz to have surgery to improve his hearing.

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“It’s a safe net for parents,” Clerveaux said. “There’s so many ways that him being here helps him grow better.”

Without Head Start, Clerveaux said a lot of pressure would be put on parents to find care for their children, “knowing that they’re already struggling or not getting the ends to meet.”

“That’s a burden for everybody in the community,” she said. “If there’s no funding, there’s no daycare and parents cannot work.”

Students sit together after breakfast at the ABCD Dorchester Head Start.Andrew Burke-Stevenson/for The Boston Globe

Lauren Albano can be reached at lauren.albano@globe.com. Follow her on X @LaurenAlbano_.





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