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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Seatbelt usage in Massachusetts increased in 2025 for the third consecutive year, “marking the state’s highest seat belt usage rate on record,” officials said in a release this week.
The annual Massachusetts Safety Belt Observational Study found belt usage rate of 85.53 percent among the state’s drivers last year, up from 84.36 percent in 2024 and 80 percent in 2023, according to the Healey-Driscoll administration.
The increase in seatbelt usage last year corresponded with a lower rate of fatal crashes, with 342 reported in the state in 2025 compared to 364 in 2024, said a statement from the state Executive Office of Public Safety and Security on Monday.
“We know that seat belts save lives, and it’s so important that seat belt usage continues to increase every year in Massachusetts,” said Governor Maura Healey, a Democrat, in the statement. “We’re grateful for the hard work of our partners in transportation, public safety and local governments to enhance safety on the roads for us all.”
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The governor’s words were echoed in the statement by her number two, Lieutenant Governor Kim Driscoll.
“Whether you’re a driver or passenger, one of the most important things you can do to protect your safety is to buckle your seat belt,” Driscoll said. “This study shows that we’ve made progress in increasing the safety of road users.”
The annual study is required by the National Highway Traffic Safety Administration, according to the statement, which said seat belt usage in Massachusetts has increased by more than 10 percent since 2015.
“Everyone has a role to play in keeping our roads safe, and wearing a seat belt is one of the simplest steps we can take to protect ourselves and the people we care about,” said Gina K. Kwon, the state’s public safety and security boss, in the release.
“When drivers and passengers buckle up every time, they help prevent serious injuries and make travel safer for families and communities across the Commonwealth,” Kwon said.
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Travis Andersen can be reached at travis.andersen@globe.com.
The long-awaited hydropower line delivering electricity from Québec to New England is expected to be running in January after years of hurdles and delays, the company Hydro Québec stated.
“We have been actively testing the line and the transformers for the past several weeks and are making good progress,” a spokesperson for Hydro Québec said, adding the teams were actively working on both sides of the U.S.-Canada border and “expect to be ready begin energy deliveries in January.”
The New England Clean Energy Connect (NECEC) transmission line, initiated nearly in 2017 under the Baker administration and under construction since 2021, is set to deliver 1,200 megawatts of hydropower from Québec to New England over 20 years, becoming one of the largest sources of baseload power in the region.
Avangrid, the company behind the NECEC, announced in November it had secured the final permit to get the power line running after years of regulatory and legal hurdles. The company estimated the line would be running by the end of 2025 at the time.
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The project to bring Canadian hydropower to the New England power grid, estimated to cost about $1 billion, is expected to provide Massachusetts with approximately 20% of it overall electricity.
The clean energy line will deliver about $3 billion in net benefits to Massachusetts residents paying for electricity, including “reducing in ratepayer bills by around $50 million each year,” state officials said.
“This transmission line will deliver affordable, stable power from our partners in Canada to our residents and businesses,” Gov. Maura Healey said in November. “More energy means lower costs. The NECEC line is a key part of our all-of-the-above approach to lowering energy costs and delivering the power our economy needs.”
On average, officials estimated, residents can expect to save $18 to $20 a year over the contract term.
Avangrid said the project will cut carbon emissions by 3.6 million metric tons a year, “the equivalent of removing 700,000 cars from the road.” The hydropower source is expected to be “key to energy reliability in the winter” as demand grows, state officials said, and evening energy prices effected by the volatility of natural gas.
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The line cleared a closing legal hurdle in January 2025 when the Massachusetts Department of Public Utilities agreed to a settlement with electric utility companies, the AG’s office, energy department and Central Maine Power approving project costs.
The clean energy project updates come weeks after the Trump administration dealt a blow to wind power projects across the U.S., including the Vineyard Wind farm off the coast of Nantucket delivering energy in New England.
New England Sports Network (NESN) on Monday announced that Boston Red Sox broadcast leaders Tom Caron and Dave O’Brien have been named 2025 Massachusetts Co-Sportscasters of the Year by the National Sports Media Association (NSMA).
Caron and O’Brien serve as the cornerstone voices of NESN’s Red Sox coverage, leading the network’s studio and game productions, respectively. Together, they anchor NESN’s comprehensive Red Sox broadcasts, delivering in-depth analysis, trusted storytelling and championship-caliber coverage to fans across New England.
“Tom and Dave represent the gold standard of sports broadcasting,” said David Wisnia, President & CEO of NESN. “Their credibility, storytelling, and deep connection to Red Sox fans elevate every broadcast. This recognition by NSMA is a well-deserved honor and a reflection of their impact on New England sports media.”
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This recognition continues NESN’s tradition of broadcast excellence, following Jack Edwards’ selection as the 2024 NSMA Massachusetts Sportscaster of the Year for his work as the play-by-play voice of the Boston Bruins.
Tom Caron joined NESN in 1995, recently celebrating 30 years with the network. For the past 24 seasons, he has been a central figure in NESN’s Red Sox coverage, serving as the network’s first baseball sideline reporter before becoming host of the Red Sox pregame and postgame shows during the club’s historic 2004 championship season. In addition to leading NESN’s Red Sox studio programming and hosting the “310 To Left” VODcast, Caron has served as studio host for Boston Bruins hockey and as play-by-play announcer for premier New England college hockey events, including the Beanpot Tournament and Hockey East Championship. A nine-time New England Emmy Award winner, Caron was inducted into the Maine Sports Hall of Fame in 2021 and is deeply involved in numerous charitable organizations throughout the region, including serving as Co-Chair of the Dana-Farber Cancer Institute’s Jimmy Fund.
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Dave O’Brien has served as NESN’s primary play-by-play voice of the Red Sox since 2016, following nine years with the Red Sox Radio Network. In addition to leading NESN’s game broadcasts, O’Brien is also the lead play-by-play announcer for college football and basketball on ESPN’s ACC Network. His career includes Major League Baseball postseason broadcasts, international World Series coverage, and play-by-play roles with the Florida Marlins, New York Mets, and Atlanta Braves. A Boston native, O’Brien is a recipient of multiple national and regional broadcasting honors and is widely respected as one of the sport’s premier voices.
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The National Sports Media Association annually recognizes excellence in sports media across the country, honoring broadcasters who demonstrate outstanding professionalism, longevity, and impact in their markets.
About NESN NESN is consistently one of the top-rated regional sports networks in the country with award-winning Red Sox and Bruins coverage, and recently named RSN of the Year by Cynopsis. NESN and NESN+ are delivered throughout the six-state New England region and are available anytime, anywhere, on any device on the NESN 360 app via direct subscription or TV authentication. The network is also distributed nationally as NESN National. NESN’s free ad-supported streaming (FAST) channel, NESN NATION, offers 35+ hours of weekly live and original programming, including exclusive sports content, interviews, and behind-the-scenes features, available on Samsung TV Plus, Prime Video, Roku, LG, Twitch, Plex, and TCLtv+. NESN.com is one of the country’s most visited sports websites with dedicated digital video production and always-on news coverage. NESN’s social responsibility program, NESN Connects, is proud to support and connect its employees with charitable organizations in the Greater Boston community. NESN also manages SportsNet Pittsburgh, home of the Pittsburgh Penguins and Pittsburgh Pirates for all regionally televised games in and around Pittsburgh, as well as other local sports content. NESN is owned by Fenway Sports Group (owners of the Boston Red Sox) and Delaware North (owners of the Boston Bruins).
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