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Protecting Massachusetts Revenue: Examining Governor Healey’s Proposed Response to OB3 Federal Corporate Tax Cuts
The Affordable Homes Act (AHA), a five-year bond bill signed in August 2024, authorized a wide range of capital housing investments through bond spending. Bond authorizations are not the same as budgetary investments: as with most bond bills, the bond authorizations in the AHA will likely not be fully budgeted during their five-year term of Fiscal Years (FYs) 2025 to 2029.
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MassBudget Responds to Governor Healey’s Proposal to Preserve Hundreds of Millions in State Revenue
The Massachusetts Budget and Policy Center (MassBudget) commends Governor Healey for taking an important first step today to preserve critical state revenue in the current fiscal year. The governor has filed a bill that will create a phased-in approach to the five most costly corporate tax changes of the federal “One Big Beautiful Bill Act” (OB3), preventing or delaying hundreds of millions in revenue losses in Fiscal Year 2026 and beyond.
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MassBudget Statement on the FY 2027 Consensus Revenue Estimate (CRE)
MassBudget statement released on 1/14/26 at 4:30PM “Today the Governor, Senate President, and Speaker of the House jointly announced the Fiscal Year (FY) 2027 Consensus Revenue Estimate (CRE) which dictates how much money the state has to spend in the upcoming fiscal year. The CRE for FY 2027 has been set at $44.9 billion. This total includes $2.7 billion dollars in surtax revenues from the Fair Share Amendment that can be spent on public education and transportation needs. Last year’s Fair Share revenue far exceeded official projections. It is heartening to see that lawmakers are confident the surtax will continue ...
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Expiring Federal Health Tax Credits Could Cost Massachusetts Residents Thousands
The enhanced federal Premium Tax Credits (PTCs) have helped millions of people afford health insurance through the Affordable Care Act (ACA) marketplaces. Without congressional action, these credits will cease at the end of 2025, and health care costs will sharply increase for people across the Commonwealth at all age and income levels. Read our full report.
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Protect Massachusetts’s Fiscal Stability: Which OB3 Tax Changes to Opt Out of and Why
Unfortunately, changes to the federal corporate tax code included in the “One Big Beautiful Bill Act” (OB3) will make our state fiscal situation worse. Many of these changes will enter our state tax code automatically, costing the Commonwealth hundreds of millions of dollars in lost corporate tax revenue unless state lawmakers opt out of these provisions. Detaching the state’s tax code from specific provisions in the federal code is a common practice known as “decoupling.”
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MassBudget calls for Massachusetts to opt out of the five most costly corporate tax changes in the federal OBBBA
As Massachusetts policymakers seek to build a more equitable and resilient Commonwealth, the recent corporate tax changes in the federal "One Big Beautiful Bill" Act (OBBBA) pose a significant threat to the stability of the state budget. While the Commonwealth cannot single-handedly reverse these damaging federal policies, it has the authority to prevent federal tax changes from automatically becoming part of the state’s own tax code.
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Show Me the Money: Cannabis Revenue, Spending, and Equity in Massachusetts
Key Takeaways Since the legalization of recreational, adult-use cannabis in 2016, cannabis sales in Massachusetts have generated nearly $2 billion in state and local revenue, with total adult-use retail sales reaching over $8 billion as of August 2025. Revenue from the Marijuana Regulation Fund (MRF), the main fund that receives cannabis revenue, supports various programs across public health, community investment, law and public safety, and regulatory oversight, with public health receiving the largest percentage. Massachusetts has led the nation in cannabis social equity programs. The initial legislation, revised after the 2016 ballot initiative, includes mandated social equity components to promote ...
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Payouts and Risks in Massachusetts’s Gambling Revenue
Key Takeaways The Lottery, casinos, and sports betting together generate $1.5 billion in annual taxes, the state’s fourth largest source of revenue. The Lottery is the largest source, but has fallen by a third since 2002, when adjusted for inflation. Problem gambling disproportionately harms lower-income and non-white bettors. Lottery revenue is used for local aid, which is somewhat targeted to lower-income communities. State spending of casino revenue has changed over time and concentrated in a few programs. Growing online sports betting may be replacing some casino gambling. It pays lower tax rates on profits and poses new dangers for problem ...
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Due to Single Sales Factor Apportionment, Multinational Corporations Cannot Dodge State Taxes by Reducing Workforce or Capital Investments in Massachusetts
Moving operations or employees out of Massachusetts won’t reduce a corporation’s taxes on its profits by a single dollar, because the share of corporate profits taxed by the Commonwealth depends only on the share of a corporation's sales made to Massachusetts customers.
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Preliminary Analysis: FY 2026 Conference Committee Budget Proposal
The Conference Committee’s Fiscal Year 2026 budget proposal, released Sunday, June 29, allocates over $61 billion in spending for the Commonwealth. MassBudget shares our preliminary analysis of the proposal.
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