Eldridge files bill to align Massachusetts long‑term capital‑gains rate with short‑term rate

Sen. James B. Eldridge (Middlesex and Worcester) filed legislation Jan. 16, 2025, that would align the state long‑term capital gains tax rate with the short‑term rate by adding a 3.5% "alignment surtax" to Part C taxable income and altering related sections of the Massachusetts General Laws. The filing appears in Senate Docket No. 1377 and is carried as Senate No. 1974; the bill was referred to the Senate Committee on Revenue.

The bill would amend Section 5G of chapter 29 by inserting a reference to the new "alignment surtax" and would add a definition for the term in Section 1 of chapter 62. The proposed definition reads: "(b) 'Alignment surtax', a tax imposed at a rate of 3.5 per cent on Part C taxable income." The filing also amends Section 4 of chapter 62 to add the surtax to the list of charges applied in paragraph (b).

The text in the filing does not define "Part C taxable income" within the submitted pages; the bill applies the 3.5% alignment surtax specifically to that base as currently referenced in chapter 62. The filing does not include estimated revenue effects, implementation language, or an effective date. No committee hearings or floor votes are recorded in the filing itself.

Senate docket materials list the bill as a petition presented by Eldridge to the General Court; the filing references amendments to existing statutory language, including a cross‑reference to chapter 28 of the Acts of 2023 where Section 5G of chapter 29 was last amended. Further legislative action — committee hearings, amendments, or votes — will determine whether the proposed surtax is adopted, altered, or rejected.