Massachusetts has yet to re-implement a charitable tax deduction, which passed through a ballot question in 2000. What's at stake?

A state tax break for charitable giving, approved through a 2000 ballot question, was available for one year, in 2001, and has been on pause ever since.

During a budget crunch in 2002, the Massachusetts Legislature stopped implementing the charitable deduction, scheduling its return through an economic formula. The state met the necessary criteria in 2020, but the Legislature and Gov. Charlie Baker agreed to hold off until state revenue recovered from the coronavirus pandemic.

Baker wanted to begin implementation in 2022, but the Legislature voted in July to push it back another year, citing continued uncertainty over revenue.

The deduction would allow Massachusetts tax filers to avoid paying $5 in taxes for every $100 that they give to charity. The state Department of Revenue has estimated that the policy, without revision, would cost the state $300 million a year in lost revenue.