MA
Massachusetts House Bill H3260
Massachusetts 2025-2026 Regular Session
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Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3260

Introduced
2/27/25  

Caption

Allowing for a tax credit for rent paid on the personal residence of the taxpayer

Impact

If enacted, HB 3260 would create a tax relief mechanism targeted mainly at low to moderate-income renters, potentially improving housing affordability for many taxpayers in Massachusetts. Given the rising cost of living and rental prices in the state, the proposed tax credit could provide significant financial relief. The bill aims to reduce the proportion of income that residents must allocate toward housing expenses, thereby encouraging greater financial stability and economic mobility among lower-income households. However, the applicability of such a credit may raise questions regarding implementation and its effects on state revenues.

Summary

House Bill 3260, introduced by Representative Chynah Tyler, proposes a tax credit for individuals paying rent on their principal residences in Massachusetts. The bill intends to assist taxpayers whose rent exceeds 40% of their gross income, offering a graduated credit based on the taxpayer's income level. The credit structure is designed to alleviate the financial burden on lower-income residents, with a maximum credit set for those earning less than $25,000 and reducing gradually for those with higher incomes, up to a limit for individuals earning over $100,000. Additionally, the bill stipulates that the term 'rent' encompasses utility payments included within the standard utility allowance determined by HUD.

Contention

Although the bill has the potential for widespread support among renters, it may provoke discussion regarding its financing and overall impact on Massachusetts' budget. Critics may surface, arguing that the implementation of tax credits like those proposed in HB 3260 could strain state resources if not carefully linked to overall budgetary assessments. Furthermore, defining the precise role of such credits within the greater context of state housing policy could lead to debate about whether targeted financial assistance is an effective means to address systemic issues related to housing insecurity in the state.

Companion Bills

MA H5318

Replaced by Study Order

Previously Filed As

MA HB07269

An Act Establishing A Personal Income Tax Deduction For A Portion Of The Rent Paid By Certain Taxpayers For A Primary Residence In The State.

MA S2521

Permits taxpayers to deduct the total amount of State property taxes paid on principal residence from gross income tax obligation.

MA A1186

Permits taxpayers to deduct total amount of State property taxes paid on principal residence from gross income tax obligation.

MA A03215

Establishes a tax credit for rent paid on the personal residence of certain taxpayers who lease the taxpayer's primary residence during the taxable year and who pay rent with respect to such residence in excess of thirty percent of such taxpayer's gross income for such taxable year.

MA S05864

Establishes a tax credit for rent paid on the personal residence of certain taxpayers who lease the taxpayer's primary residence during the taxable year and who pay rent with respect to such residence in excess of thirty percent of such taxpayer's gross income for such taxable year.

MA HB1985

To Create The Arkansas Renter Refund Act; And To Provide An Income Tax Credit For Certain Taxpayers Who Are Residential Tenants.

MA HB05114

An Act Establishing A Refundable Credit Against The Personal Income Tax For A Portion Of Annual Rent Payments Made By A Taxpayer For A Primary Residence In The State.

MA A10575

Creates the middle class circuit breaker tax credit allowing a credit against personal income tax, equal to seventy percent of the amount by which the taxpayer's net real property tax or the taxpayer's real property tax equivalent exceeds the taxpayer's maximum real property tax; establishes a tax reform study commission.

MA A03736

Establishes a tax credit for rent paid on the personal residence of certain taxpayers who lease the taxpayer's primary residence during the taxable year and who pay rent with respect to such residence in excess of thirty percent of such taxpayer's gross income for such taxable year whose income is less than fifty percent of the area median income.

MA S05808

Establishes a tax credit for rent paid on the personal residence of certain taxpayers who lease the taxpayer's primary residence during the taxable year and who pay rent with respect to such residence in excess of thirty percent of such taxpayer's gross income for such taxable year whose income is less than fifty percent of the area median income.

Similar Bills

No similar bills found.