Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S1798 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 1224 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 1798
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	James B. Eldridge
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act to reduce poverty by expanding the EITC and the child and family tax credit.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :James B. EldridgeMiddlesex and WorcesterSal N. DiDomenicoMiddlesex and SuffolkRebecca L. RauschNorfolk, Worcester and Middlesex1/23/2023Joanne M. ComerfordHampshire, Franklin and Worcester1/24/2023Michael D. BradySecond Plymouth and Norfolk1/26/2023Christine P. Barber34th Middlesex1/30/2023Jason M. LewisFifth Middlesex2/1/2023John F. KeenanNorfolk and Plymouth2/10/2023Patricia D. JehlenSecond Middlesex3/3/2023 1 of 3
16	16	SENATE DOCKET, NO. 1224 FILED ON: 1/19/2023
17	17	SENATE . . . . . . . . . . . . . . No. 1798
18	18	By Mr. Eldridge, a petition (accompanied by bill, Senate, No. 1798) of James B. Eldridge, Sal N.
19	19	DiDomenico, Rebecca L. Rausch, Joanne M. Comerford and other members of the General
20	20	Court for legislation to improve the earned income credit for healthier families. Revenue.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE SENATE, NO. 1852 OF 2021-2022.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act to reduce poverty by expanding the EITC and the child and family tax credit.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. Paragraph (b) of Part B of section 3 of chapter 62 of the General Laws, as
32	32	2appearing in the 2020 Official Edition, is hereby amended by striking out subparagraph 3.
33	33	3 SECTION 2. Section 6 of said chapter 62, as most recently amended by section 33 of
34	34	4chapter 102 of the Acts of 2021, is hereby amended by striking out, in lines 245 and 250, the
35	35	5figure “30” and inserting in place thereof, in each instance, the following figure:- 50.
36	36	6 SECTION 3. The first paragraph of said section 6 of said chapter 62, as so amended, is
37	37	7hereby further amended by adding the following sentence:- A taxpayer may claim a credit under
38	38	8this section, using either a Social Security number or an individual taxpayer identification
39	39	9number, if but for section 32(m) of the Code, the taxpayer would be eligible to claim a credit. 2 of 3
40	40	10 SECTION 4. Said section 6 of said chapter 62, as so amended, is hereby further amended
41	41	11by inserting, in line 252, after the word “year” the following words:- provided, however that for
42	42	12each additional qualifying child, as defined in section 32 (b) of the Code, above 3 children, the
43	43	13per cent of the federal credit shall increase by 5 percentage points per qualifying child.
44	44	14 SECTION 5. Said section 6 of said chapter 62, as so amended, is hereby further amended
45	45	15by striking out subsections (x) and (y) and inserting in place thereof the following subsection:-
46	46	16(x) (1) A taxpayer who maintains a household that includes as a member: (A) at least 1
47	47	17individual who qualifies for an exemption as a dependent under section 151 of the Code; (B) at
48	48	18least 1 qualifying individual, as defined in said section 21 of the Code; or (C) at least 1
49	49	19individual who is: (I) disabled; and (II) who qualifies as a dependent under section 152 of the
50	50	20Code, shall be allowed a credit in an amount equal to $600 for each such dependent or qualifying
51	51	21individual with respect to the taxpayer.
52	52	22 (2) A taxpayer who maintains a household that does not include a member listed in the
53	53	23first paragraph of this subsection shall be allowed a credit in an amount equal to $600.
54	54	24 (3) If a taxpayer is married at the close of the taxable year, the credit provided in this
55	55	25subsection shall be allowed if the taxpayer and the taxpayer’s spouse file a joint return for the
56	56	26taxable year or if the taxpayer qualifies as a head of household under section 2(b) of the Code
57	57	27 (4) For the purposes of this subsection, “maintains a household” shall have the same
58	58	28meaning as in section 21 of the Code. (5) With respect to a taxpayer who is a non-resident for
59	59	29part of the taxable year, the credit shall be further limited to the amount of allowable credit
60	60	30multiplied by a fraction, the numerator of which shall be the number of days in the taxable year
61	61	31the person resided in the commonwealth and the denominator of which shall be the number of 3 of 3
62	62	32days in the taxable year. A person who is a non-resident for the entire taxable year shall not be
63	63	33allowed the credit. If the amount of the credit allowed under this subsection exceeds the
64	64	34taxpayer’s tax liability, the commissioner shall treat the excess as an overpayment and shall pay
65	65	35the taxpayer the entire amount of the excess without interest. (6) The department shall adjust the
66	66	36figures set forth in the first and second paragraphs of this subsection annually to reflect increases
67	67	37in the cost of living by the same method used for federal income tax brackets.
68	68	38 SECTION 6. In order to ensure the widest possible dissemination of state and federal tax
69	69	39credits that are aimed to reduce poverty, the department shall: (i) include multilingual
70	70	40information by video and text in its website about state and federal tax credits, free tax
71	71	41preparation services, and low-income taxpayer clinics; (ii) provide all employers with a
72	72	42multilingual poster and a notice that sets forth the rights under this chapter; (iii) require that all
73	73	43employers doing business in the commonwealth post information about tax credits in a
74	74	44conspicuous location at the place of employment; (iv) coordinate a notification system by the
75	75	45commonwealth about tax credit to applicants for and recipients of unemployment insurance
76	76	46under chapter 151A, applicants for and recipients of transitional assistance benefits, including
77	77	47food stamps, under chapter 18, and to recipients of subsidized health insurance under chapter
78	78	48118E; and (v) collaborate with labor organizations, chambers of commerce, municipalities,
79	79	49community-based organizations, and taxpayer advocates to disseminate information about tax
80	80	50credits. The multilingual poster and notice requirement in clause (i) shall comply with the
81	81	51requirements for employer’s unemployment notices under clauses (i) and (iii) of subsection (d)
82	82	52of section 62A of chapter 151A.