Bill > HB05977

This bill modifies the sales and use tax exemption for certain housing developments by expanding the existing exemption to include mixed-income developments. Specifically, the bill allows sales tax exemptions for tangible personal property used in developing, constructing, rehabilitating, renovating, repairing, or operating dwelling units in mixed-income developments. To qualify, a mixed-income development must meet strict affordability requirements: at least 40% of dwelling units must have deed restrictions ensuring that units are sold or rented at prices affordable to families earning 80% or less of the median income, with at least 15% of those units specifically targeting families earning 60% or less of the median income. Purchasers seeking this tax exemption must obtain a certification from the commissioner and provide documentation to retailers demonstrating that the purchased property will be used exclusively for the development of these affordable housing units. The bill defines key terms like "median income" and establishes detailed criteria for what constitutes a mixed-income development. The tax exemption will take effect on October 1, 2025, and apply to sales occurring on or after that date, potentially incentivizing the creation of more affordable housing options.

Budget and Finance

Finance, Revenue and Bonding Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=HB05977&which_year=2025