The bill outlines various tax expenditures in Massachusetts, focusing on evaluations conducted by the Tax Expenditure Review Commission (TERC) to assess the effectiveness and fiscal impact of these expenditures. Key provisions include the introduction of a standardized evaluation template for tax expenditures, which will facilitate consistent reviews based on criteria such as purpose, fiscal impact, and economic benefits. The bill highlights specific tax expenditures for legislative review, including the exemption of Social Security benefits, dependent care expenses, and the Brownfields Credit, all of which have significant fiscal implications. Additionally, the bill proposes to align Massachusetts tax law with the Internal Revenue Code, incorporating various exclusions and deductions aimed at supporting military personnel, education, and health savings.

Furthermore, the bill introduces new legal language to enhance support for lower-income students by making electronic textbooks available and evaluates the sales tax exemption for textbooks, which is projected to result in a revenue loss of $10.2 to $12.2 million annually. It also proposes an exemption from sales tax for donations of scientific equipment to educational institutions, aiming to encourage such contributions. The bill emphasizes the importance of these tax expenditures in providing financial relief to families, promoting education, and supporting economic development while ensuring compliance with federal tax regulations. Overall, the bill seeks to modernize Massachusetts tax law and enhance its alignment with federal standards, providing targeted relief to various groups and sectors.