Massachusetts HD 1238: An Act relative to a child and dependent care tax credit

Bill Text

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HOUSE DOCKET, NO. 1238 FILED ON: 1/14/2025
HOUSE . . . . . . . . . . . . . . . No. 3174

The Commonwealth of Massachusetts
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PRESENTED BY:
William F. MacGregor and Brandy Fluker-Reid
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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act relative to a child and dependent care tax credit.
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PETITION OF:

NAME: DISTRICT/ADDRESS: DATE ADDED:
William F. MacGregor 10th Suffolk 1/14/2025
Samantha Montaño 15th Suffolk 2/25/2025
Lindsay N. Sabadosa 1st Hampshire 2/25/2025

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HOUSE DOCKET, NO. 1238 FILED ON: 1/14/2025
HOUSE . . . . . . . . . . . . . . . No. 3174
By Representatives MacGregor of Boston and Fluker-Reid of Boston, a petition (accompanied
by bill, House, No. 3174) of William F. MacGregor, Samantha Montaño and Lindsay N.
Sabadosa relative to a child and dependent care tax credit. Revenue.

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Fourth General Court
(2025-2026)
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An Act relative to a child and dependent care tax credit.

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:

1 Section 6 of chapter 62 of the General Laws, as most recently amended by section 194 of
2 chapter 238 of the acts of 2024, is hereby amended by adding the following subsection:-
3 (jj) With respect to a taxpayer who is a non-resident for part of the taxable year, the credit
4 shall be further limited to the amount of allowable credit multiplied by a fraction, the numerator
5 of which shall be the number of days in the taxable year the person resided in the commonwealth
6 and the denominator of which shall be the number of days in the taxable year. A taxpayer who
7 incurred child or dependent care expenses through the use of child or dependent care services
8 shall be allowed a credit in an amount equal to $500 for each such dependent under section 151
9 of the Code or qualifying individual with respect to the taxpayer; provided, however, that the
10 allowed credit against the tax otherwise due under this subsection in the amount of 25 per cent of
11 the federal tax credit allowable for child and dependent care expenses in the same tax year;
12 provided further, if the taxpayer is married at the close of the taxable year, the credit provided in

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13 this subsection shall be allowed if: (a) the taxpayer and the taxpayer's spouse file a joint return
14 for the taxable year; or (b) the taxpayer qualifies as a head of household under section 2(b) of the
15 Code. A person who is a non-resident for the entire taxable year shall not qualify for the credit. If
16 the amount of the credit allowed under this subsection exceeds the taxpayer's tax liability, the
17 commissioner shall treat the excess as an overpayment and shall pay the taxpayer the entire
18 amount of the excess without interest.