Big Wins on Beacon Hill in 2023

As 2023 ends, it seems appropriate to look back on the year. AARP Massachusetts, along with the state’s seniors, had some big wins on Beacon Hill.

The biggest wins came in a tax credit package that made it through the legislature and onto the governor in the fall. It was the first tax package signed into law in more than 20 years. It saves seniors money. You’ll see the results when you file your taxes.

Among the changes:

Doubling the Senior Circuit Breaker Tax Credit from $1,200 to $2,400. This will lower the overall tax burden for more than 100,000 taxpayers age 65+, with low income, who own or rent residential property in Massachusetts as their primary residence.

Increasing the Senior Property Tax Volunteer Program maximums from $1,500 to $2,000. Municipalities may allow for certain seniors to reduce from their property tax by participating in the senior work-off program.

Increasing the tax credit for a dependent child, disabled adult, or senior The tax credit is raised from $180 to $310 in taxable year 2023, and then to $440 in taxable year 2024 and beyond, per dependent, while eliminating the child/dependent cap.

Increasing the rental deduction cap from $3,000 to $4,000. This impacts approximately 881,000 Massachusetts renters many of whom are seniors.

Increasing the Earned Income Tax Credit. The tax credit is raised from 30 to 40% of the federal credit, helping 396,000 taxpayers with incomes under $57,000

This summer’s Budget agreement also had some big wins for the state’s older population. Funding for most programs and services was at the FY23 level or higher. There were significant increases to:

· Supportive Senior Housing
· Elder Home Care
· Elder Nutrition
· Councils on Aging
· Funding for Operation ABLE. This Funds training programs and employment services for older job seekers
· Funding for Long Term Care Services Actuarial Study Funds an independent study of long term care financing in Massachusetts. Earmark for Dementia Care Coordination Pilot Funds Alzheimer’s Association dementia care coordination program.
· Virtual LGBT+ senior center This funds virtual senior center for LGBTQIA+ older adults. It’s a first in the nation program.

There were also Important policy changes:

· Elimination of the Medicare Savings Program Asset Cap
Acceptance to the state’s Medicare Savings plan (known as MassHealth Buy-In) will now depend on income levels; assets will no longer be used in the determination

· Personal Needs Allowance for nursing home residents
Increases monthly Personal Needs Allowance for residents in nursing homes

· Leaves of Absence for nursing home residents
Funding for defined leaves of absences for nursing home residents

· Telehealth regulations made permanent

The legislation session is not over. There’s still work to be done. Two important bills are making their ways through the process. The House passed a long term care omnibus bill. It reforms the long-term care industry by supporting and expanding the workforce, enhancing oversight of facilities, prioritizing quality of care, and ensuring access The bill still needs to go through the Senate before it can go to the Governor. As for the Senate, it passed a prescription drug omnibus bill. It address the cost, access and transparency of prescription drugs. The House still needs to vote on the bill.

There’s still more that can be done. There’s work to do on a more comprehensive caregiver tax credit, livable communities and expanding retirement savings programs.

Are you interested in helping making change in Massachusetts? Help AARP Massachusetts make these bills become laws. Email us at ma@aarp.org

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