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, 2024.