Billion-Dollar State Tax Cut Includes Expanded Deductions for Bike and Transit Expenses in Mass.

The new law, which is effective retroactively to January 1, 2023, will let taxpayers deduct a much broader range of transportation expenses.

The deduction will now apply to any transit fare – not just weekly or monthly passes – and for any expenditures made "for regional transit authority fares, or for bikeshare memberships, or for bicycles, including electric bicycles, or for bicycle improvements, repair and storage, or for any fare for a commuter boat owned, operated or contracted by a municipality, public or quasi-public entity, agency or authority."

The deduction will still be capped at $750. With the state's flat 5 percent income tax rate, the most you'll save on your tax bill from this deduction in any given year is $37.50.