A legislative committee in Massachusetts has reviewed Governor Maura Healey’s proposed bill addressing how the state will respond to recent changes in federal tax law. The bill suggests delaying and phasing in several updates to the federal tax code that were enacted after Congress passed a major reform package known as the One Big Beautiful Bill.
The Healey administration has stated that its recommendation to separate certain aspects of Massachusetts’ tax code from the federal system is intended to ensure responsible financial management. Among the provisions affected is section 179, which increases the threshold for equipment expensing—a measure important to small businesses. Under Healey’s proposal, this change would not take effect until 2027, preventing businesses from utilizing these savings during 2026. Other sections subject to delay or gradual implementation include section 163j, which relates to business interest deductions, and section 174, concerning research and development tax credits.
During testimony before the Joint Committee on Revenue, representatives from the National Federation of Independent Business (NFIB) urged lawmakers to align immediately with federal rules:
“…small businesses in the Commonwealth would see the immediate benefit of increasing the expensing of assets under Section 179. This tax change would allow many Main Street businesses to expense the full value of equipment and other qualifying purchases. By matching the federal limit, Massachusetts small businesses would be better positioned to plan for future investment by guaranteeing tax predictability.”
Some advocates have argued for a complete separation from federal tax policies, stating that state resources are more urgently needed for public programs than for providing relief to businesses and residents.
NFIB indicated it will continue tracking developments related to this legislation as it proceeds through further review in the legislature.
