The bill amends Section 5G of Chapter 29 of the Massachusetts General Laws to establish the distribution of excess capital gains tax revenue for Fiscal Year 2025. It specifies that any capital gains tax revenue exceeding the threshold of $1,563,655,002 will be allocated as follows: 90% to the Commonwealth Stabilization Fund, 5% to the State Retiree Benefits Trust Fund (SRBTF), and 5% to the Commonwealth's Pension Liability Fund (PRIT). The bill outlines the amounts transferred to each fund based on the certified capital gains income collected, which totaled $2,154,695,534.73 for Period 3 and $2,439,571,818.62 for Period 4, resulting in net transfers of $500,916,816.62 after adjustments.

Additionally, the bill includes provisions for the adjustment of the capital gains tax threshold based on the average annual growth rate of the U.S. gross domestic product. It also clarifies that revenue from the additional 4% income tax levied under Article XLIV of the Amendments to the Constitution will not be considered capital gains income for the purposes of this section. The bill aims to ensure that the distribution of capital gains tax revenue is transparent and aligned with the state's fiscal policies.