By Colin Young, October 9, 2025
“While lawmakers grapple with a loss of anticipated state revenue as a result of federal tax code changes, the Massachusetts Budget and Policy Center, a policy research and advocacy organization, called Thursday for the Legislature to respond quickly to the “significant threat to the stability of the state budget” by cutting a handful of the ties to the state tax regime.
Revenue Commissioner Geoffrey Snyder told budget managers on Sept. 30 that the federal changes are expected to reduce state tax collections by more than $650 million in fiscal year 2026, which began July 1. A Department of Revenue analysis of the tax code change impacts shows that some business filers and more likely high earners could stand to benefit by not paying taxes the state had counted on.
The commissioner said about a half dozen federal tax code changes form the bulk of the impact, and lawmakers said they would consider options that include decoupling the state tax code from the federal one in some or all instances.
MassBudget urged the Legislature to “protect $463 million in revenue that would otherwise be lost this fiscal year” by “imminently passing new state laws to address at least the five most costly corporate federal tax provisions.” The center did not specify which provisions it wants to see Massachusetts decoupled from….”
