New tax bill will change home equity rules for Massachusetts homeowners

Homeowners will still be able to deduct their property taxes and Massachusetts withholding

Paul Ryan, Mitch McConnell
FILE - This Sept. 27, 2017 file photo shows Senate Majority Leader Mitch McConnell, R-Ky., center, joining Speaker of the House Paul Ryan, R-Wis., and other GOP lawmakers to talk about the Republicans' proposed rewrite of the tax code for individuals and corporations, at the Capitol in Washington. The Republican tax plan will deliver a swift adrenaline shot to the economy that will send hundreds of billions pouring into federal tax coffers, the Trump administration asserts in a new analysis. House and Senate negotiators are rushing to finalize the tax legislation and deliver the promised measure to President Donald Trump before Christmas. Trump will try on Wednesday, Dec. 13, 2017 to sell the American people on an unpopular GOP tax overhaul. (AP Photo/J. Scott Applewhite, file)

HOLYOKE, Mass. (WWLP)-The republican tax bill passed Wednesday could impact every American.

Secretary of the Commonwealth William Galvin said the Republican tax bill will have a negative impact on Massachusetts taxpayers.

Early Wednesday morning the senate approved the final version of the first overhaul of the US tax code, in more than three decades.

The bill, which was re-voted on and passed by the house on Wednesday, eliminates certain deductions, which would also result in higher taxes for some individuals, but not all Massachusetts residents are worried.

“I think that he has a plan that I think half the country wants, half the country does not want
and I believe that I’m the half of the country that wants to try it,” said Dan Larrow.

The plan will impact mortgage loan borrowers.

President and CEO of People’s Bank, Thomas Senecal told 22News that this new tax law will change home equity rules.

Once President Trump signs the tax plan into law, Senecal said it’s his understanding that home equity loan interest will no longer be deductible.

“Taxes will be effective starting January 1st of next year, we do expect to see some economic growth next year as a result of it
but nothing this year significantly as a result of the change,” said Senecal.

Homeowners will still be able to deduct their property taxes and Massachusetts withholding, but that combined total will be capped at ten thousand dollars

It is still unclear when the bill will be delivered to the White House.