SECTION 1.  Section 6 of chapter 62 of the General Laws, as most recently amended by chapter 179 of the acts of 2022, is hereby further 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:

“Qualified residential rental property”, any unsubsidized 2- to 4-unit residential rental property.

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

“Qualified tenants”, low-income persons of protected classes in accordance with section 4 of chapter 151B, seniors and families with small children. 

“Seniors”, Persons who are 65 years of age or older.

(2) Any resident who is an owner of a qualified residential rental property located in the commonwealth 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 United States Department of Housing and Urban Development and the amount charged in rent; provided, however, that the credit shall not to exceed $2,000 for each qualified rental unit; and provided further, that the resident shall not be allowed the credit under this subsection for more than 6 qualified rental units. The credit shall be prorated by 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 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.

The exemption provided for in this subsection shall be in addition to any other exemptions allowed by law.

The commissioner shall promulgate regulations necessary for the administration of this subsection.

SECTION 2.  A city or town, by vote of its town meeting, town council or city council, with the approval of the mayor, where required by law, may exempt a qualified residential rental property from property taxation. The amount of the exemption shall be determined by the municipality but shall not exceed an amount equal to the tax otherwise owed on the property based on the assessed value of the property. Further, such exemption is limited to a percentage, as determined by the city or town, of the difference between the maximum HOME rent limit for the participating jurisdiction as defined by the United States Department of Housing and Urban Development and the pro rata amount of rent per unit.

Nothing in this act shall limit the authority of a city or town to provide additional relief from local property taxes to incentivize renting residential units to low-income families with children and seniors.

The owner of a dwelling qualifying for exemption under this section shall submit to the municipality or its agent documentation, including but not limited to a signed lease, necessary to confirm the eligibility of the rental.

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