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Exemptions on the block

The following is a list of some of the 44 specific personal income tax exemptions proposed for elimination under Gov. Deval L. Patrick’s state operating budget proposal and how much getting rid of the tax break would generate for the commonwealth.

∎ Deduction for employee Social Security and Railroad Retirement System payments; a gain of $301.3 million

∎ Exemption of capital gains on home sales; a gain of $288.2 million

∎ Deduction for dependents under age 12; a gain of $137 million

∎ Parking, T-Pass and vanpool fringe benefits; a gain of $41.1 million

∎ Exemption of scholarships and fellowships; a gain of $20.7 million

∎ Deduction for business-related child care expenses; a gain of $16.8 million

∎ Health savings accounts; a gain of $12.3 million

∎ Renewable energy source credit; a gain of $1.4 million

∎ Expensing certain capital outlays of farmers; a gain of $300,000

∎ Charitable contribution deduction. A gain-estimate was not available for this exemption.

Corporate tax exemptions on the chopping block include:

∎ Apply the sales tax to customized computer software and computer and data processing; a gain of $265 million

∎ Reclassify security and utility corporations as corporations or financial institutions; a gain of $83 million

∎ Eliminate the FAS 109 deduction; a gain of $76 million

∎ Limit film tax credits to $40 million a year; a gain of $40 million.

SOURCE: Massachusetts Executive Office of Administration and Finance provided the list of proposed personal income tax exemption cuts. The FY14 Tax Exemption Budget supplied the monetary estimates for the personal income taxes. The Massachusetts Taxpayer Foundation’s review of the governor’s revenue proposal provided the information on corporate taxes.

— KRISTIN PALPINI

Related

Gov. Deval Patrick’s plan to cut tax breaks, boost education

Thursday, June 27, 2013

Nearly $2 billion in personal income tax breaks, claimed by millions of Massachusetts families and single residents, are on the chopping block in Gov. Deval L. Patrick’s controversial state budget proposal — a high-stakes overhaul of the Bay State’s tax code. Now, the impact of such a change is being hotly debated. Claiming a tax break, or exemption, reduces how … 0

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