Tax credit increase signed into law in Mass.

New law will increase state earned income tax credit from 15 percent to 23 percent of federal tax credit

BOSTON (WWLP) – Governor Charlie Baker did what he called “something nice for 400,000 people.”

Flanked by members of both parties, Baker signed into law a 50 percent increase in the state’s earned income tax credit. That could mean an additional $500 per year for an eligible low-income family.

“I think it will help a great many people who work for a living and don’t make that much money to support their families, who have to do local jobs for less pay,” said Darius Betts of Northampton. “ So I think it’s a good investment.”

Even though the new law will increase the state earned income tax credit from 15 percent to 23 percent of the federal tax credit, Baker said he plans to push for another increase to 30 percent of the federal level.

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