House and Senate conferees have released a compromise tax bill that includes an impactful combination of tax cuts to help people and employers in Massachusetts. The $951 million package includes a total of 17 different tax relief provisions, each of which targets issues of cost and competitiveness. The total Fiscal Year (FY) 2024 cost is $571 million, with a net impact to the budget that fits within the amount set aside for tax relief in the recently signed FY 2024 spending plan.
The final bill incorporates some version of each of the tax relief proposals from the House and Senate, resulting in a strong final bill. Consistent with MTF’s recommendations, the final package includes close to $1 billion in tax relief and phases in several elements over time to allow for a larger bill that fits within the current budget framework. The compromise bill does not go as far as MTF’s recommendations in some areas and includes several concerning tax policy sections, but those issues cannot obscure the fact that this is a timely and significant policy proposal to help address some of the state’s most serious economic challenges.