Bill > HB1132

This bill exempts materials used in the construction, renovation, and rehabilitation of affordable housing from state sales and use tax when those projects are undertaken by purely public charities, which are organizations recognized as tax-exempt under Section 501(c)(3) of the federal Internal Revenue Code. To qualify for this exemption, the charity must be building or improving single-family homes that will be financed by the charity to first-time homebuyers with incomes at or below 80 percent of the county's median income, as defined by the U.S. Department of Housing and Urban Development (HUD). Additionally, the homes must be used as a primary residence and include a covenant restricting resale for at least 30 years to buyers who also meet the same income requirements. This exemption is set to automatically expire and be repealed on December 31, 2031, and the provisions of this bill will take effect on January 1, 2027.