Personal Income Tax Law: Corporation Tax Law: credits: domestic violence survivor housing.
The implementation of SB 221 is expected to foster a collaborative relationship between the housing sector and nonprofit organizations dedicated to aiding domestic violence survivors. By incentivizing landlords to participate in this initiative, the bill aims to increase the availability of affordable housing for individuals in need. Supporters argue that this legislative effort not only assists vulnerable populations but also contributes positively to the wider community by addressing disparities in housing access. Furthermore, it establishes a reporting mechanism to assess the efficacy of the tax credits awarded.
Senate Bill 221, introduced by Senator Seyarto, seeks to provide a tax credit to encourage property owners to lease their properties to nonprofit organizations that support survivors of domestic violence. The bill outlines a tax credit of up to $5,000 per year for a period spanning from 2023 to 2028 for qualified taxpayers who engage in such leases. To qualify, the lease must provide housing at a rate at least 20% lower than the fair market value and must have a minimum lease term of at least 12 months. Furthermore, nonprofits receiving the properties must be classified under section 501(c)(3) of the Internal Revenue Code.
The sentiment surrounding SB 221 appears largely supportive among legislators and advocacy groups focused on domestic violence issues. Proponents appreciate the potential for increased housing security for survivors, recognizing it as a significant step towards reducing the repercussions of domestic violence. Nonetheless, there are discussions about ensuring that the credits do not lead to elite landlords capitalizing on the situation for profit without adequately serving the vulnerable community they intend to support. This hint of apprehension underscores the need for stringent oversight and accountability in the program’s execution.
Notable contention surrounding the bill relates to the expansion of perjury laws as the bill requires property owners to certify under oath that the rental properties will be utilized for domestic violence survivor housing. Critics argue that this aspect may create barriers for noncompliance or deter potential property owners from participating due to fears of legal repercussions. Additionally, discussions about the efficacy of tax credits as a long-term solution to housing issues suggest that while SB 221 brings immediate relief, it may not address the systemic factors contributing to housing insecurity.