The proposed bill introduces the "Surplus Funds Tax Credit Act" as a new chapter in Title 44 of the General Laws concerning taxation. It establishes a mechanism for refunding excess state tax revenues to taxpayers. Specifically, if net state tax revenues in a fiscal year exceed the projected revenue estimates contained in the budget, the excess amount will result in a credit equal to the total amount of such excess. This credit will be applied to taxpayers' personal income tax liabilities on a proportional basis, calculated based on their liabilities from the immediately preceding taxable year. The state budget officer is responsible for determining whether the net state tax revenue exceeds the projected estimates and reporting this by September 1 of each fiscal year. The excess amount will be calculated and refunded to taxpayers in proportion to their personal income tax liabilities from the previous year, with the percentage for the refund determined by the director of the department of revenue.

Additionally, the bill allows for enforcement of its provisions by taxpayers through the state courts, provided that a petition is filed by at least 28 taxable inhabitants, with no more than seven from any one county. Successful petitioners may recover reasonable attorneys' fees and costs from the state incurred in maintaining such a suit. The director of the department of revenue is granted the authority to promulgate rules and regulations necessary to implement the provisions of this chapter. This legislation is set to take effect on July 1, 2025.