Bill > SB653

This bill creates a new sales and use tax refund program for builders constructing affordable housing in Texas. Specifically, the bill allows developers to receive a refund for sales taxes paid on building materials used in housing projects that are subsidized by federal or state tax credits and awarded on or after September 1, 2025. For single-family homes, builders can receive a refund on taxes paid for up to $50,000 in building materials per home, with a maximum annual refund of $100,000. For apartment complex units, builders can receive a refund on taxes paid for up to $5,000 in building materials per unit, also with a maximum of $100,000 in a 180-day period. The total amount of refunds available statewide is capped at $2 million per fiscal year and will be distributed on a first-come, first-served basis. To receive the refund, builders must apply to the state comptroller and cannot reapply for a refund within 180 days of a previous application. The bill is designed to incentivize the construction of affordable housing by providing tax relief to developers, with the refund program set to begin on September 1, 2025.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB653