Massachusetts Ties Business Tax Breaks to Ballot Initiative

Massachusetts Gov. Maura Healey (D) signed a budget bill Friday that ties five business deductions to maintaining the state’s 5% personal income tax rate, putting fresh pressure on a proposed ballot measure that could lower the rate to 4%.

The bill (H. 5470) also would order state revenue officials to report the fiscal impact of all federal corporate tax breaks that the state follows for possible decoupling if the income rate were to drop.

House lawmakers tucked the tax conformity provision in its fiscal year 2026 supplemental budget bill in March. That budget bill appropriates nearly ...