GOVERNOR HEALEY SIGNS TAX RELIEF LEGISLATION
ENACTS NAIOP PRIORITIES
On October 4, Governor Healey signed legislation enacting more than $1 billion in tax relief.
NAIOP's advocacy and work convening a broad range of business and economic development groups over two legislative sessions resulted in the final bill including language tripling the annual cap on the Housing Development Incentive Program from $10 million to $30 million, and a one-time $57 million allocation to clear out the almost-2,000 unit backlog of shovel ready housing projects in Gateway Cities across the Commonwealth. The bill also includes a NAIOP-supported $20 million increase in the Low-Income Housing Tax Credit, bringing the total annual allocation to $60 million.
The final law also:
- Cuts the short-term capital gains tax from 12% to 8.5%;
- Doubles the trigger threshold for the estate tax from $1 million to $2 million;
- Increases of rental deduction cap from $3,000/year to $4,000/year;
- Allows cities and towns to adopt local property tax exemptions to encourage the production of affordable housing; and
- Increases the child and dependent tax credit from $180 to $330 per child or dependent in tax year 2023, with a further increase to $440 per child or dependent in tax year 2024.
NAIOP is grateful to the Governor for championing tax reform as her first priority in office, and to the Legislature for ensuring that Massachusetts businesses and residents would receive this much-needed relief. NAIOP looks forward to continuing our work with the Healey-Driscoll Administration and Legislative Leadership to guarantee policies that help secure the Commonwealth's competitiveness in the global economy are advanced.
The NAIOP Advocacy Team is working on numerous initiatives at the state and local level. If you have questions regarding these, or other topics, please feel free to reach out to NAIOP's CEO Tamara Small or NAIOP's Vice President of Policy and Public Affairs, Anastasia Nicolaou.
**Note: This post was updated on October 4 to reflect the news regarding the Governor's signing of the legislation.