The bill amends the distribution of excess capital gains tax revenue for Fiscal Year 2026, as outlined in Section 5G of Chapter 29 of the Massachusetts General Laws. Under the current law, 90% of the excess revenue is allocated to the Commonwealth Stabilization Fund, while 5% goes to the State Retiree Benefits Trust Fund (SRBTF) and 5% to the Commonwealth's Pension Liability Fund (PRIT). However, the new provisions introduced by Section 117 of Chapter 9 of the Acts of 2025 change this distribution for FY26, directing 90% of the excess revenue to the Pension Liability Fund, 5% to the Stabilization Fund, and 5% to the SRBTF.

The bill also specifies that the transfers of capital gains collected in excess of the threshold will occur quarterly, with the amounts being certified by the Department of Revenue. For FY26, the capital gains tax threshold is set at $1,661,441,081, and the estimated revenue collected from capital gains income has been certified at $2,912,225,422.26. Consequently, the total transfers to the respective funds will amount to $1,250,784,341.26, with $1,125,705,907.13 allocated to the Pension Liability Fund, and $62,539,217.06 each to the Stabilization Fund and the SRBTF.