HOUSE DOCKET, NO. 3988        FILED ON: 1/20/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2882

The Commonwealth of Massachusetts

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PRESENTED BY:

Adrian C. Madaro

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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 promoting housing affordability through tax relief.

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PETITION OF:

HOUSE DOCKET, NO. 3988        FILED ON: 1/20/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2882

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Third General Court
(2023-2024)

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An Act promoting housing affordability through tax relief.

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

SECTION 1.  Section 6 of chapter 62 of the General Laws, as amended by chapter 179 of the acts of 2022, is hereby amended by inserting after subsection (bb) the following subsection:-

(cc)(1) As used in this subsection, the following words shall have the following meanings unless the context clearly requires otherwise:

“Department”, the United States Department of Housing and Urban Development.

“Qualified residential rental property”, any unsubsidized 2- to 4-unit residential rental property located in the commonwealth.

“Qualified rental unit”, a tenant-occupied unit in a qualified residential rental property with a rent, including utilities, that does not exceed the maximum HOME rent limits for the participating jurisdiction as defined by the Department; provided, however, that “qualified rental unit” shall not include a unit rented to immediate family members or dependents of the qualified residential rental property owner.

“Qualified tenant”, a household with an income no greater than 70 per cent of the area median income as defined by the Department, an individual 62 years of age or older or a household with at least 1 member under the age of 18.

(2) Any resident who is an owner of a qualified residential rental property and who is not a dependent of another taxpayer shall be allowed a credit for the difference between the maximum HOME rent limit for the participating jurisdiction as defined by the Department and the amount charged in rent; provided, however, that the credit shall not exceed $2,000 for each qualified rental unit; provided further, that the resident shall not be allowed a credit under this subsection for more than 6 qualified rental units; provided further, that the credit allowed under this subsection may be in addition to any other credits, exemptions or other tax benefits allowed by federal or state law and local ordinances. The credit shall be calculated based on the number of months the qualified rental unit is rented to a qualified tenant; provided, however, that joint owners of a qualified residential rental property shall share any credit available to the property under this subsection in the same proportion as their ownership interest.

Any taxpayer entitled to this credit for any taxable year, the amount of which exceeds the taxpayer’s total tax due for the then current taxable year, may carry over the excess amount, as reduced from year to year, and apply the excess amount to the taxpayer’s tax liability for any 1 or more of the next succeeding 3 taxable years; provided, however, that in no taxable year may the amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable year.

(3) The commissioner shall promulgate regulations necessary to carry out this subsection.

            SECTION 2. The second paragraph of section 62A of chapter 60 of the General Laws is hereby amended by striking out the words “25 per cent” and inserting in place thereof the following words: -up to 25 per cent of the amount needed to redeem the parcel or such lesser percentage as the ordinance or bylaw may specify.

        SECTION 3. This act shall be effective for tax years beginning on or after January 1, 2023.