SECTION 1. Section 3(B)(a)(9) of Chapter 62 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out the text and inserting in place thereof the following:-

(9) In the case of an individual who pays rent for his principal place of residence and such residence is located in the commonwealth, an amount equal to 50 per cent of such rent; provided, however, that such deduction shall not exceed $4,100 for a single person, for a person that qualifies as a head of household under section two (b) of the Code, or for spouses, increased by an amount equal to the deduction limit multiplied by the cost-of-living adjustment for the calendar year in which the taxable year begins; provided, that the household income of eligible taxpayers shall not exceed 100 percent of the area median income, as defined by the United States Department of Housing and Urban Development. For the purposes of this section, the term “cost-of-living adjustment” means, for any calendar year, the percentage, if any, by which the consumer price index for the preceding calendar year exceeds the consumer price index, as defined in section 1 of the Code, for calendar year 2017. The commissioner shall adopt regulations necessary for the implementation of this section.

SECTION 2. This act shall apply to taxable years beginning on or after January 1, 2018.