Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1768

Introduced
2/16/23  

Caption

Improving the earned income credit for working families

Impact

If enacted, S1768 would have a substantial impact on state tax laws, particularly regarding how taxpayers can claim credits against their state tax liabilities. The proposed changes expand eligibility for the EIC, which could lead to increased tax refunds for many low to moderate-income earners, effectively lowering their tax burdens and increasing disposable income. Additionally, this bill establishes measures to notify vulnerable populations, including nonresident workers and victims of domestic abuse, ensuring they can claim the credits they deserve, thus addressing economic disparities within the state.

Summary

Senate Bill S1768 seeks to improve the earned income credit (EIC) for working families in Massachusetts. This legislation aims to enhance financial support for individuals who qualify for the EIC under the federal tax code. By amending section 6 of chapter 62 of the General Laws, the bill proposes allowing taxpayers to access a credit against their state taxes that is tied to the federal EIC, significantly benefiting families with limited income. The primary goal of this bill is to uplift lower-income families by providing them with much-needed financial relief through better-qualified tax credits.

Contention

While the bill has garnered support from various legislators and advocacy groups championing low-income individuals and families, potential points of contention may arise regarding the funding implications of increased EIC claims on state finances. Some critics may argue that expanding tax credits without corresponding budget adjustments could strain the state’s financial resources. Discussions in legislative sessions may focus on balancing the need for such financial assistance with the implications for the wider state budget and tax structure, making it a critical legislative action to observe.

Companion Bills

MA S1903

Similar To Establishing a tax credit for child care

MA S1792

Similar To Establishing a child and family tax credit

MA S1823

Similar To Expanding the child tax credit

MA H4728

Replaced by Study Order

Previously Filed As

MA S1793

To increase family stabilization through the earned income tax credit

MA S1957

Supporting families through enhanced tax credits

MA H2762

To increase family stabilization through the earned income tax credit

MA H3073

Supporting families through enhanced tax credits

MA SB369

Income Tax - Maryland Earned Income Tax Credit Assistance Program for Low-Income Families

MA HB252

Income Tax - Maryland Earned Income Tax Credit Assistance Program for Low-Income Families

MA S2054

Increases the state earned-income credit as of January 1, 2025 to seventeen percent (17%) of the federal earned-income credit, not to exceed the amount of state income tax.

MA S0040

Increases the state earned-income credit as of January 1, 2026 to seventeen percent (17%) of the federal earned-income credit, not to exceed the amount of state income tax.

MA S1975

To reduce poverty by expanding the EITC and the child and family tax credit

MA AB2023

Personal income taxes: working families child care tax credit.

Similar Bills

No similar bills found.