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Bill > SB0401


IN SB0401

IN SB0401
Landlord tax credit.


summary

Introduced
01/13/2025
In Committee
01/13/2025
Crossed Over
Passed
Dead
04/24/2025

Introduced Session

2025 Regular Session

Bill Summary

Landlord tax credit. Provides that a taxpayer is entitled to a credit against the taxpayer's state income tax liability in a taxable year equal to the lesser of: (1) $1,500 multiplied by the number of rental units that the taxpayer rents during a taxable year to individuals that were incarcerated at some time not more than three years prior to the taxable year; or (2) $7,500. Provides that to obtain the credit, the taxpayer must claim the credit in the manner prescribed by the department. Prohibits the taxpayer from claiming any carryover, carryback, or refund of any unused credit.

AI Summary

This bill creates a new tax credit for landlords who rent to individuals who were recently incarcerated, specifically those who were released from prison within the past three years. The credit allows taxpayers to claim $1,500 for each rental unit rented to such individuals, with a maximum total credit of $7,500 per taxable year. To qualify, the taxpayer must be the owner of a rental unit and must rent to eligible formerly incarcerated individuals during a taxable year beginning after December 31, 2025. The credit can only be applied against the taxpayer's state income tax liability and cannot reduce the tax liability below zero. Importantly, landlords must claim the credit through the prescribed method by the department and provide all necessary information for calculation. The bill explicitly states that unused credits cannot be carried over to future years, carried back to previous years, or refunded. This legislation aims to incentivize landlords to provide housing opportunities for individuals recently released from incarceration, potentially helping to reduce recidivism by supporting their reintegration into society.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

First reading: referred to Committee on Tax and Fiscal Policy (on 01/13/2025)

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