Massachusetts House Bill H3017

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

Relative to the deduction of health insurance payments from gross income for self employed individuals

Summary

This bill would amend Chapter 62 of the Massachusetts General Laws, which governs state income tax, to allow a new deduction from gross income for certain health insurance premiums paid by self-employed individuals. Specifically, it would add a provision permitting amounts paid during the taxable year by a self-employed person for insurance that constitutes medical care for the individual, their spouse, and dependents to be deducted. The measure is aimed at reducing the state tax burden on self-employed taxpayers who purchase their own health coverage rather than receiving employer-sponsored insurance. It appears to mirror or track existing federal tax treatment for self-employed health insurance deductions, but would apply within the Massachusetts income tax framework.

Impact

If enacted, the bill would amend Chapter 62, section 2(a)(2) of the General Laws by adding a new deductible item for self-employed health insurance payments. This would lower taxable gross income for eligible taxpayers and could reduce state income tax liability for self-employed individuals who pay premiums for medical care coverage for themselves, spouses, and dependents. The bill would primarily affect self-employed workers, sole proprietors, and other taxpayers meeting the federal self-employment definition referenced in the bill.

Sentiment

There is no recorded committee testimony or vote history in the provided materials, so formal legislative sentiment cannot be measured from the record here. Based on the bill’s purpose and wording, the proposal appears to be a targeted tax relief measure for self-employed residents, which typically draws support from small business and taxpayer advocates. The absence of recorded opposition or amendments suggests the bill was at least introduced in a straightforward, noncontroversial form, though no committee action is shown.

Contention

The main policy question is fiscal: the deduction would reduce state tax revenue, so any opposition would likely come from lawmakers or budget-focused stakeholders concerned about revenue loss or the scope of tax preferences. Another possible point of discussion is eligibility, since the bill ties the deduction to the federal self-employment definition and to insurance that constitutes medical care for the taxpayer, spouse, and dependents. No specific objections, amendments, or competing viewpoints are included in the provided record.