On January 12, State Representative Kate Lipper-Garabedian testified in front of the Massachusetts Legislature’s Joint Committee on Revenue to advocate for a bill she filed earlier this session that would increase the income tax deduction for rental payments for the first time in more than 20 years. H.2984, An Act relative to affordable rental housing, would increase the income tax deduction for the first time since 2001 for rental payments on an individual’s primary place of residence from $3,000 to $4,000. This increase would provide relief to the nearly 40 percent of Massachusetts residents who are renters by more accurately accounting for the proportion of income that is spent on rent.
“We need to update our laws to reflect current economic realities,” said Representative Lipper-Garabedian. “Since 2001, the cost of living and the cost of rent has grown exponentially. This update is necessary to ensure the legislature’s efforts to provide relief to renters is meaningfully realized. This bill complements our ongoing attention to the housing crisis in Massachusetts, including during COVID-19. It offers a timely and appropriate proposal that will provide an additional lever in supporting the financial stability of a significant portion of the Commonwealth.”
The Joint Committee on Revenue is expected to issue a recommendation on the bill in the coming days.