Tax cuts signed into law by Gov. Healey take effect as 2024 begins

What's happening: The $1 billion tax relief law includes larger deductions for parents and renters.

• The child and dependent tax credit will increase from $180 to $310 per child for 2023 and then up to $440 for 2024 and beyond.

Here are other increased tax breaks, per the state:

• Earned income tax credit: Worth up to 40% of federal EITC credit.
• Senior circuit breaker credit: $2,400.
• Rental deduction: $4,000.
• Estate tax credit: $99,600 for everyone (effectively kills tax for estates below $2 million).
• Septic tax credit: $18,000, with up to $4,000 claimable per year.
• Lead paint abatement: $3,000 for full treatments eliminating lead hazards at home; $1,000 for partial treatment.

Plus: The short-term capital gains tax is dropping from 12% to 8.5%.

Be smart: The tax relief law also now requires married couples who file federal taxes jointly to do the same for state taxes.