Chapter 63 of the General Laws is hereby amended by inserting, after section 38JJ, the following section:-

Section 38KK. Affordable Housing Contractor Tax Credit

(a) For the purposes of this section, the following words shall have the following meanings:

“Affordable housing contractor”, a housing contractor contracted to construct housing accommodations that will be designated as low or moderate income housing by the department of housing and community development on the state’s subsidized housing inventory. 

(b) There shall be established an affordable housing contractor tax credit program under which an affordable housing contractor may be allowed a refundable income tax credit based on the amount of rent paid to house any workers employed by the contractor. The credit may be claimed against the taxes due pursuant to this chapter.

(c) The tax credit shall only be claimed by the contractor for rent paid to house workers contracted for work on a project to construct housing accommodations that will be designated as low or moderate income housing by the department of housing and community development on the state’s subsidized housing inventory.

(d) The commissioner of revenue shall adopt regulations for the implementation, administration and enforcement of this section.

(e) The total cumulative value of the tax credits authorized pursuant to this section shall not exceed $10,000 annually.

(f) If the amount of the credit allowed under this section exceeds the taxpayer's liability, the commissioner of revenue shall treat such excess as an overpayment and shall pay the taxpayer 100 per cent of the amount of such excess, without interest.