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Credits Against Tax
| TAX EXPENDITURE | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 |
|---|---|---|---|---|---|
| Credits Against Tax | 233.0 | 252.2 | 255.9 | 263.4 | 346.2 |
| item | description | amount |
|---|---|---|
| Credits Against Tax | 346.2 | |
| 1.601 | Renewable Energy Source Credit | 1.8 |
| 1.602 | Credit for Removal of Lead Paint | 2.5 |
| 1.603 | EDIP/Economic Development Incentive Program Credit | 3.9 |
| 1.605 | Earned Income Credit | 217.7 |
| 1.606 | Septic System Repair Credit | 9.2 |
| 1.607 | Low Income Housing Credit | 1.0 |
| 1.608 | Brownfields Credit | 4.2 |
| 1.609 | Refundable State Tax Credit Against Property Taxes for Seniors ("Circuit Breaker") | 80.6 |
| 1.610 | Historic Buildings Rehabilitation Credit | 6.4 |
| 1.611 | Film (or Motion Picture) Credit | 2.1 |
| 1.613 | Medical Device User Fee Credit | Negligible |
| 1.614 | Dairy Farmers Credit | 3.4 |
| 1.615 | Conservation Land Credit | 2.0 |
| 1.616 | Employer Wellness Program Tax Credit | 7.5 |
| 1.617 | Community Investment Tax Credit | 3.0 |
| 1.618 | Farming and Fisheries Income Tax Credit | 0.9 |
Key:
| ORIGIN | |
| IRC | Federal Internal Revenue Code (26 U.S.C.) |
|---|---|
| U.S.C | United States Code |
| M.G.L. | Massachusetts General Laws |
| Rev. Rul.; C.B. | Revenue Ruling; Cumulative Bulletin of the U.S. Treasury |
| ESTIMATES | All estimates are in $ millions. |
Footnote(s):
1 1 This item and others citing this endnote cover employee fringe benefits. We accept as standard the following treatment of these benefits: the expense incurred by the employer in providing the benefit is properly deductible as a business expense and the benefit is taxed as compensation to the employee as if the employee had received taxable compensation and then used it to purchase the benefit. Of course, there are problems with this analysis. In some cases, the "benefit" is more a condition of employment than a true benefit. For example, a teacher required to have lunch in the school cafeteria may prefer to eat elsewhere even if the school lunch is free. On the other hand, in many cases the provision of tax-free employee benefits is clearly a substitution for taxable compensation.
2 2 This item and others citing this endnote cover contributory pension plans. The standard tax treatment of these plans is as follows: Component Standard Treatment Contributions: Made out of income that is currently taxed to employees. Investment Income: Taxed to the employee as "earned" income. Distributions from Pension Funds: Tax-free to the extent they are made out of dollars previously taxed to the employees as contributions or investment income. The non-standard treatment of contributions, investment income, or distributions as described in items 1.006, 1.101, 1.104, and 1.402, results in either nontaxation or deferrals of tax.
3 3 FY17 estimates for the basic personal exemptions and the no-tax status discussed in the introduction to the personal income tax are (in millions of dollars): Personal exemption for single taxpayers: $322 Personal exemption for married couples: $564 Personal exemption for married taxpayers filing separately: $15 Dependents exemption: $88 Personal exemption for heads of households: $104 Limited income credits: $12 No tax status: $15
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