After meeting on April 10, 2023, Gov. Maura Healey (center), Senate President Karen Spilka (left) and House Speaker Ron Mariano address reporters at the State House. Photo by Sam Doran | State House News Service

Lawmakers could combine virtually every tax relief measure proposed in divergent House and Senate bills and still keep the price tag close to the impact each branch’s budget-writers anticipated next year, a new report suggests.

An analysis from the Massachusetts Taxpayers Foundation said a compromise package embracing the full scope of relief across both bills would carry a total impact of $668 million in fiscal year 2024, or a net budget impact of $601 million.

The House’s fiscal 2024 budget factored in about $587 million of tax relief, while the Senate’s spending plan left room for about $575 million in relief. Like the tax bills (H.3770 / S.2406), the budget bills remain tied up in conference committee negotiations helmed by Rep. Aaron Michlewitz and Sen. Michael Rodrigues.

“House and Senate conferees have the opportunity to negotiate a compromise tax relief bill that adheres to these principles, includes all of the proposals put forward by both branches, and remains within the $600 million set aside for FY 2024,” MTF wrote in its brief published Thursday. “In developing that compromise, it is critical that the bill retain the House’s greater focus on cost reduction and competitiveness, while also incorporating Senate proposals to expand successful housing tax credits. In addition, the bill should retain proposals to assess options to expand the (pass-through entity) tax and study the timing of tax credit payment to maximize taxpayer benefits.”

Because of some gradual ramp-ups and delayed implementation dates, the cost of combining all elements from both plans would rise to an annualized $1.18 billion, or a net budget impact of $1.05 billion, MTF said. The House plan in particular would expand child and dependent tax credits and a short-term capital gains tax rate reduction over multiple years.

The business-backed group said it opposes a piece of the Senate tax relief bill that would require married couples who file joint tax returns at the federal level to do so at the state level, a change aimed at ensuring couples whose combined income surpasses $1 million pay the new surtax. MTF said the measure would “run directly counter to the broader goals of addressing high costs and competitiveness and should not be included in the final version.”