Bill
H 3182
Massachusetts would offer a refundable state tax credit equal to the lesser of capital gains tax owed or the down payment value for first-time buyers using liquidated investments f
Status & jurisdiction
- Introduced in the Massachusetts House (194th General Court) by Representative Christopher M. Markey; prefiled 12/05/2024, introduced 01/14/2025.
- Referred to Committee on Judiciary (01/14/2025) and later to the Committee on Revenue (02/27/2025). Senate concurred (02/27/2025). Hearing scheduled 09/15/2025.
- Note: some document pages include a duplicated, unrelated South Carolina constitutional amendment text — that content appears out of place and is not connected to the Massachusetts proposal.
Purpose / intent
- Create a refundable state tax credit to encourage Massachusetts residents who are first‑time homebuyers to use proceeds from the liquidation of capital investments toward a down payment on a primary residence.
Key provisions
- Definition: “First‑time homebuyer” means a Massachusetts resident who has not owned a home at any point in the last three years.
- Credit amount: A refundable credit equal to the lesser of (a) the capital gains tax owed on the liquidated investment(s) or (b) the value of the homeowner’s down payment.
- Timing requirement: The liquidation of capital investments must occur within the 60 days prior to the transfer (closing) of the property.
- Refundable: If the credit exceeds tax liability, the excess is refundable to the taxpayer (the bill text does not identify an administering agency or additional procedural rules).
Who would be affected
- Primary beneficiaries: Massachusetts residents qualifying as first‑time homebuyers who sell capital investments and use proceeds for a primary‑residence down payment within the specified 60‑day window.
- State finances: Potential reduction in state tax revenue to the extent credits are claimed; administrative workload for the Department of Revenue (or other tax authority) to implement, verify liquidation timing, and process refunds.
- Market effects: Could modestly increase down‑payment capacity for eligible buyers and influence timing of capital asset sales.
Procedural notes & uncertainties
- The bill text lacks specifics on administration (forms, documentation required to prove liquidation and use of funds, caps per taxpayer or per year) and does not include explicit fiscal estimates.
- The duplicated South Carolina amendment text in the filing appears to be a clerical error and is unrelated to this Massachusetts proposal.
- Further committee hearings and possible amendments (e.g., documentation, limits, sunset clauses, fiscal offsets) are likely before final enactment.
Compiled from official sources — confirm details with the bill’s official record.
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