Bill would let sellers deduct receipts for affordable housing work

The bill would let sellers deduct receipts from selling construction materials and labor. The housing must be designed or intended mainly as a home for more than three households. This includes congregate housing and temporary or transitional housing for people without homes. The materials and labor must be used to develop affordable multifamily housing and sold to a qualifying grantee under the Affordable Housing Act. The housing must be mainly for people with low or moderate incomes. This means household income at or below 80 percent of the local area median, adjusted for family size. If enacted, the bill would take effect July 1, 2026. The deduction would apply to receipts before July 1, 2033.

The bill would include the deduction in the tax expenditure budget and report its yearly total cost. The reporting covers the deduction described in this bill. The bill does not state a separate start date for this reporting.