Bill
H 3081
Mass. H 3081 would exempt up to $20,000 of taxable pension income, and 100% of it after 20+ years of tax, for residents 65+ with income at or below area AMI.
Status and Sponsors
- Bill number: H 3081
- Primary sponsor: Rep. Carol A. Doherty; cosponsor: Rep. James K. Hawkins
- Prefiled: 12/05/2024; introduced/read first time: 01/14/2025
- Referred: Committee on Judiciary (01/14/2025); Referred to Committee on Revenue (02/27/2025)
- Hearing(s) scheduled/rescheduled: multiple hearings set for 11/18/2025 (times/rooms updated)
- Related bill: HD 2950 (replaces)
Note on bill content
- The document filed as H 3081 contains two distinct pieces of text. The primary Massachusetts text proposes a pension-income tax exemption for certain senior residents. Separately, the file also includes text that appears to be a South Carolina draft amending alimony law. These are unrelated substantive measures; the summary below treats them separately.
1) Massachusetts: Pension-income tax exemption (primary Massachusetts text)
Purpose and intent
- Provide targeted state income tax relief on pension income for certain Massachusetts residents age 65+ with incomes at or below local area median income.
Key provisions
- Adds a new clause to Part B, §3(b) of chapter 62 (Massachusetts General Laws) to create exemptions for “taxable pension income” (as defined under §2).
- Exemption details:
- Exempt the first $20,000 of taxable pension income from Massachusetts income tax.
- Exempt 100% of taxable pension income for taxpayers who have paid tax on taxable pension income for over 20 years.
- Eligibility requirements:
- Must be a resident of the Commonwealth;
- Must be over age 65;
- Must have household income at or below the area median income (AMI) where they reside, as defined by the Department of Housing and Community Development (DHCD).
Who is affected
- Older Massachusetts residents (65+) receiving taxable pension income whose household income is at or below their area’s AMI. Likely beneficiaries are lower- and moderate-income retirees; state revenues would be reduced to the extent of claimed exemptions.
Procedural/timeline notes
- Referred to Revenue Committee (02/27/2025) after initial referral to Judiciary. Hearings have been scheduled for 11/18/2025. Fiscal analyses (revenue impact) would normally be completed during committee review.
2) South Carolina: Alimony limitation language (separate inserted text)
Purpose and intent
- Establish a formula-based cap and duration limit on alimony awards in SC family law.
Key provisions
- Alimony may be awarded only to the party with lesser income.
- Caps annual alimony at 17% of the difference between the higher earner’s and lower earner’s annual wages (i.e., 17% × wage difference).
- Limits alimony duration to no more months than the parties were married.
- Allows the court to deviate from the formula (including increasing amount/duration or awarding to the higher earner) only upon clear and convincing evidence that the formula would be inequitable.
- Effective upon the Governor’s approval.
Who is affected
- Parties to divorces in South Carolina; lower-earning spouses would generally be the only presumptive recipients, with more predictable but potentially lower awards and duration caps. Courts retain discretion to deviate in exceptional cases.
Overall considerations
- The Massachusetts provision would target tax relief to older, lower-income retirees; it would reduce state income tax receipts to a degree dependent on uptake and the number of eligible taxpayers. Administrative implementation would require DHCD AMI references and Department of Revenue guidance.
- The South Carolina language (if enacted) would substantially change alimony calculations and likely reduce average awards/durations while allowing narrow judicial exceptions.
Compiled from official sources — confirm details with the bill’s official record.
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