In Pittsfield, Healey-Driscoll Administration Celebrates Tax Cut Savings for Housing Needs, Affordable Homes Act

 In Pittsfield, Healey-Driscoll Administration Celebrates Tax Cut Savings for Housing Needs, Affordable Homes Act 

Tax package delivers savings for senior homeowners and 880,000 renters, invests in housing production 

 

PITTSFIELD – Today, Governor Maura T. Healey and Lieutenant Governor Kim Driscoll visited St. Mary’s the Morningstar in Pittsfield as part of their Cutting Taxes, Saving You Money tour to celebrate the savings for senior homeowners and renters included in the tax cuts package recently signed by Governor Healey. The package will also help to lower housing costs across the state by investing in the production of affordable housing and housing development in Gateway Cities. Earlier in the day, Governor Healey unveiled her administration’s $4 billion Affordable Homes Act, which is the largest housing investment in state history and will spur the creation of 40,000 new homes while preserving and rehabilitating tens of thousands more. 

“The Lieutenant Governor and I are proud to be spreading awareness for the savings coming for homeowners and renters today in Pittsfield, a city we know has been hard hit by an aging housing supply and skyrocketing costs. The tax cuts package that I recently signed into law will also help make housing more affordable across the state by investing in the production of affordable housing and new housing in Gateway Cities like Pittsfield,” said Governor Healey. “Additionally, the More Affordable Homes Act that we introduced today is the largest housing investment in state history and will unlock the creation, preservation and rehabilitation of more than 65,000 units across the state, lowering costs for all.” 

“One of the provisions of the tax cuts package that I’m most excited about is the expansion of HDIP. As the former Mayor of a Gateway City, I’ve seen how transformative this program can be by expanding our housing supply to meet the moment for our residents who are struggling with high housing costs,” said Lieutenant Governor Driscoll. “St. Mary’s is a great example of the impact of HDIP, as the city was able to transform this former church into 29 units of housing. This is why the Governor and I first proposed this expansion in March, and we’re grateful to the Legislature for delivering this critical investment.” 

“The Housing Development Incentive Program has provided Pittsfield with the ability to convert vacant commercial space in the upper level of commercial buildings in our downtown, renovate former churches and a vacant firehouse on Tyler Street into housing,” said Pittsfield Mayor Linda Tyer. “All these projects have brought new residents to the urban center of our city and have stimulated economic development in the downtown and surrounding area. I am grateful to the Healey-Driscoll administration for their continued support in providing additional funding to create new housing opportunities.” 

Provisions of the tax cuts package that will make housing more affordable include: 

• Housing Development Incentive Program (HDIP) – increases annual program cap from $10 million to $57 million in 2023, and thereafter to $30 million annually 

• Rental deduction – increases rental deduction cap from $3,000 to $4,000. 

• Senior Circuit Breaker Tax Credit – Doubles the credit, from $1,200 to $2,400 for low-income seniors to help minimizes their taxes.  

• Low-Income Housing Tax Credit (LIHTC) – increases annual program cap from $40 million to $60 million 

• Estate Tax – Increases the threshold from $1 million to $2 million with a credit that mitigates the cliff effect. This change brings Massachusetts more in line with other states and keeps pace with the rising value of homes in communities across the state. This reform will allow seniors to pass on generational wealth, making it more attractive to retire and age in Massachusetts and for families to stay geographically close. 

The tax cut package included necessary support for families, seniors and businesses as well. On October 5, Governor Healey and Lieutenant Governor Driscoll visited Gardner Elementary School and the Haverhill YMCA to celebrate the nation’s most generous Child and Family Tax Credit. On October 10, Governor Healey and Lieutenant Governor Driscoll visited the Northborough Senior Center to celebrate doubling the Senior Circuit Breaker Tax Credit and additional tax cuts to save seniors money. Additional visits will be planned in the coming days to celebrate relief for businesses and more.