Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S1975 Compare Versions

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

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2	2	SENATE DOCKET, NO. 1380 FILED ON: 1/16/2025
3	3	SENATE . . . . . . . . . . . . . . No. 1975
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 WorcesterJoanne M. ComerfordHampshire, Franklin and Worcester2/11/2025 1 of 5
16	16	SENATE DOCKET, NO. 1380 FILED ON: 1/16/2025
17	17	SENATE . . . . . . . . . . . . . . No. 1975
18	18	By Mr. Eldridge, a petition (accompanied by bill, Senate, No. 1975) of James B. Eldridge and
19	19	Joanne M. Comerford for legislation to improve the earned income credit for healthier families.
20	20	Revenue.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE SENATE, NO. 1798 OF 2023-2024.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Fourth General Court
26	26	(2025-2026)
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 (1) of subsection (h) of section 6 of chapter 62 of the General
32	32	2Laws, as amended by section 11 of chapter 50 of the acts of 2023, is hereby further amended by
33	33	3striking out the figure “40” each time it appears, and inserting in place thereof, in each instance,
34	34	4the following figure: -50.
35	35	5 SECTION 2. Said paragraph (1) of said subsection (h) of said section 6 of said chapter
36	36	662, as so amended, is hereby further amended by inserting at the end of said paragraph the
37	37	7following sentence: -A taxpayer may claim a credit under this section using either a Social
38	38	8Security Number or an Individual Taxpayer Identification Number, if but for section 32(m) of
39	39	9the Code, the taxpayer would be eligible to claim the credit. In the case of a taxpayer with a
40	40	10qualifying child for the Earned Income Tax Credit but who is ineligible for a Social Security 2 of 5
41	41	11Number or Individual Taxpayer Identification Number, the DOR shall issue said child a tax
42	42	12identification number.
43	43	13 SECTION 3. Said paragraph (1) of said subsection (h) of said section 6 of said chapter
44	44	1462, as so amended, is hereby further amended by inserting after “taxable year” the following
45	45	15words: -except that in the case of a taxpayer without a qualifying child, the amount of the credit
46	46	16shall be 100 per cent of the earned income credit allowable under Section 32 of the Code.
47	47	17 SECTION 4. Said paragraph (1) of said subsection (h) of said section 6 of said chapter
48	48	1862, as so amended, is hereby further amended by inserting, in line 252 after the word “year” the
49	49	19following words: -provided however that for each additional qualifying child, as defined in
50	50	20section 32(b) of the Code, above three children, the percent of the federal credit shall increase by
51	51	215 percentage points per qualifying child.
52	52	22 SECTION 5. Said subsection (h) of said section 6 of said chapter 62, as so amended, is
53	53	23hereby further amended by inserting the following paragraph:-
54	54	24 (3): For the purposes of this subsection, an individual who has attained 18 or, if the
55	55	25individual is married, either spouse has attained 18 before the close of the taxable year, shall be
56	56	26deemed to have satisfied all eligibility requirements under subsection (c)(1)(A)(ii)(II) of section
57	57	2732 of the Code.
58	58	28 SECTION 6. Section 6 of said chapter 62, as most recently amended by section 21 of
59	59	29chapter 50 of the acts of 2023, is hereby further amended by striking out subsection (x) and
60	60	30inserting in place thereof the following subsection:- 3 of 5
61	61	31 (x) (1) For the purposes of this subsection, "maintains a household'' shall have the same
62	62	32meaning as in section 21 of the Code. With respect to a taxpayer who is a non-resident for part of
63	63	33the taxable year, the credit shall be further limited to the amount of allowable credit multiplied
64	64	34by a fraction, the numerator of which shall be the number of days in the taxable year the person
65	65	35resided in the commonwealth and the denominator of which shall be the number of days in the
66	66	36taxable year. A taxpayer who maintains a household that includes as a member at least 1
67	67	37individual: (i) who qualifies for exemption as a dependent under section 151 of the Code; or (ii)
68	68	38who is a qualifying individual as defined in said section 21 of the Code; or (iii) who (A) is not
69	69	39less than 65 years of age or is disabled and (B) qualifies as a dependent under section 152 of the
70	70	40Code, shall be allowed a credit in an amount equal to $600 for each such dependent or qualifying
71	71	41individual with respect to the taxpayer; provided, however, that if the taxpayer is married at the
72	72	42close of the taxable year, the credit provided in this subsection shall be allowed if: (a) the
73	73	43taxpayer and the taxpayer's spouse file a joint return for the taxable year; or (b) the taxpayer
74	74	44qualifies as a head of household under section 2(b) of the Code. For each taxable year, the
75	75	45commissioner shall increase the amount of the credit for each eligible dependent or qualifying
76	76	46individual as provided by this subsection to reflect cost of living by the same method used for
77	77	47federal income tax brackets. A person who is a non-resident for the entire taxable year shall not
78	78	48qualify for the credit. If the amount of the credit allowed under this subsection exceeds the
79	79	49taxpayer's tax liability, the commissioner shall treat the excess as an overpayment and shall pay
80	80	50the taxpayer the entire amount of the excess without interest.
81	81	51 (2) Upon request by a taxpayer eligible for the Child and Family Tax Credit but ineligible
82	82	52for a Social Security Number or Individual Taxpayer Identification Number, the DOR shall issue
83	83	53said taxpayer a tax identification number to enable the taxpayer to claim the credit. 4 of 5
84	84	54 (3) A taxpayer who maintains a household that does not include a member listed in the
85	85	55first paragraph of this subsection and who receives benefits under 42 U.S.C. 1382 shall be
86	86	56allowed a credit in an amount equal to $600.
87	87	57 (4) The commissioner may establish a process to allow taxpayers to elect to receive one
88	88	58or more advance payments of the credit under this subsection. The amount of advance payments
89	89	59must be based on the taxpayer and commissioner’s estimate of the amount of credit for which the
90	90	60taxpayer would be eligible in the taxable year beginning in the calendar year in which the
91	91	61payments were made. The commissioner shall not distribute advance payments to a taxpayer
92	92	62who does not elect to receive advance payments. The amount of a taxpayer’s credit under this
93	93	63subsection for the taxable year is reduced by the amount of advance payments received by the
94	94	64taxpayer in the calendar year during which the taxable year began.
95	95	65 SECTION 7. In order to ensure the widest possible dissemination of state and federal tax
96	96	66credits that are aimed to reduce poverty, the department shall: (i) include multilingual
97	97	67information by video and text in its website about state and federal tax credits, free tax
98	98	68preparation services, and low-income taxpayer clinics; (ii) provide all employers with a
99	99	69multilingual poster and a notice that sets forth the rights under this chapter; (iii) require that all
100	100	70employers doing business in the commonwealth post information about tax credits in a
101	101	71conspicuous location at the place of employment; (iv) coordinate a notification system by the
102	102	72commonwealth about tax credit to applicants for and recipients of unemployment insurance
103	103	73under chapter 151A, applicants for and recipients of transitional assistance benefits, including
104	104	74food stamps, under chapter 18, and to recipients of subsidized health insurance under chapter
105	105	75118E; and (v) collaborate with labor organizations, chambers of commerce, municipalities,
106	106	76community-based organizations, and taxpayer advocates to disseminate information about tax 5 of 5
107	107	77credits. The multilingual poster and notice requirement in clause (i) shall comply with the
108	108	78requirements for employer’s unemployment notices under clauses (i) and (iii) of subsection (d)
109	109	79of section 62A of chapter 151A.
110	110	80 SECTION 8. This act shall apply to tax years beginning on or after January 1, 2025.