HOUSE DOCKET, NO. 2906        FILED ON: 2/18/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3078

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Chynah Tyler

_________________

To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act allowing for a tax credit for rent paid on the personal residence of the taxpayer.

_______________

PETITION OF:

 

Name:

District/Address:

Date Added:

Chynah Tyler

7th Suffolk

2/3/2021

Patrick Joseph Kearney

4th Plymouth

2/26/2021

Bud L. Williams

11th Hampden

2/26/2021


HOUSE DOCKET, NO. 2906        FILED ON: 2/18/2021

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 3078

By Ms. Tyler of Boston, a petition (accompanied by bill, House, No. 3078) of Chynah Tyler, Patrick Joseph Kearney and Bud L. Williams for legislation to authorize tax credits for rent paid on personal residences of taxpayers.  Revenue.

 

[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 2652 OF 2019-2020.]

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Ninety-Second General Court
(2021-2022)

_______________

 

An Act allowing for a tax credit for rent paid on the personal residence of the taxpayer.

 

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

Section 3 of chapter 62 of the General Laws is hereby amended by striking out subsection B(a)(9) and inserting in place thereof the following subsection:-

In the case of an individual who pays rent for his principal place of residence in excess of 30 percent of the taxpayer’s gross income for such taxable year and such residence is located in the commonwealth, an amount equal to the applicable percentage of such excess as follows:

(i) 100% for an individual whose gross income is not over $25,000, (ii) 75% for an individual whose gross income is over $25,000, but not over $50,000, (iii) 50% for an individual whose gross income is over $50,000, but not over $75,000, (iv) 25% for an individual whose gross income is over $75,000, but not over $100,000, or (v) a deduction not to exceed $3,000 for a single person, for a person that qualifies as a head of household under section two (b) of the Code, or for a husband and wife that together make over $100,000 in gross income.

The term “rent” shall include any amount paid for utilities of a type taken into account for purposes of determining the standard utility allowance, but for purposes of determining the amount of credit allowed under this subsection rent shall be capped at 125% of the fair market rent (including the standard utility allowance) as determined by the United States Department of Housing and Urban Development.

SECTION 2.  This act shall take effect for tax years beginning on or after January 1, 2021.