Connecticut 2025 Regular Session

Connecticut House Bill HB07114 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	LCO No. 5508 1 of 5
4	4
5	5	General Assembly Raised Bill No. 7114
6	6	January Session, 2025
7	7	LCO No. 5508
8	8
9	9
10	10	Referred to Committee on HOUSING
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12	12
13	13	Introduced by:
14	14	(HSG)
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19	19	AN ACT ESTABLISHING A TAX CREDIT FOR THE CONSTRUCTION
20	20	OF RESIDENTIAL UNITS ABOVE RETAIL PROPERTY.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. (NEW) (Effective July 1, 2025, and applicable to taxable years 1
25	25	commencing on and after January 1, 2026) (a) As used in this section: 2
26	26	(1) "Dwelling unit" has the same meaning as provided in section 47a-3
27	27	1 of the general statutes; 4
28	28	(2) "Nonprofit corporation" means a nonprofit corporation 5
29	29	incorporated pursuant to chapter 602 of the general statutes, or any 6
30	30	predecessor statutes thereto, and having as one of its purposes the 7
31	31	construction, conversion, ownership or operation of housing; 8
32	32	(3) "Owner" means (A) any taxpayer filing a state of Connecticut tax 9
33	33	return who possesses title to a retail property or prospective title in the 10
34	34	form of a purchase agreement or option to purchase a retail property to 11
35	35	construct residential dwelling units above such retail property; and (B) 12
36	36	a nonprofit corporation that possesses such title or prospective title; 13
37	37	Raised Bill No. 7114
38	38
39	39
40	40
41	41	LCO No. 5508 2 of 5
42	42
43	43	(4) "Qualified construction expenditures" means any costs incurred 14
44	44	for the physical construction involved in the development of residential 15
45	45	dwelling units above existing retail property; and 16
46	46	(5) "Retail property" means commercial real estate that is used to sell 17
47	47	consumer goods and services. 18
48	48	(b) Not later than January 1, 2026, the Commissioner of Housing shall 19
49	49	establish a program to administer a system of tax credit vouchers within 20
50	50	the resources, requirements and purposes of this section for owners 21
51	51	constructing residential dwelling units above existing retail property or 22
52	52	taxpayers making contributions that are qualified construction 23
53	53	expenditures. Any owner eligible to apply for a tax credit voucher 24
54	54	pursuant to this section shall be eligible for such voucher in an amount 25
55	55	equal to ten per cent of the qualified construction expenditures for each 26
56	56	additional floor above the retail property for a maximum of three 27
57	57	additional floors against the tax imposed under chapter 208 of the 28
58	58	general statutes. 29
59	59	(c) Not later than January 1, 2026, the commissioner shall develop 30
60	60	standards for the approval of tax credit vouchers for the construction of 31
61	61	residential dwelling units above retail property for which a tax credit 32
62	62	voucher is sought. 33
63	63	(d) Prior to beginning any construction work on a retail property for 34
64	64	which an owner will seek a tax credit voucher under this section, such 35
65	65	owner shall submit a construction plan to the commissioner for a 36
66	66	determination of whether such construction plan meets the standards 37
67	67	developed under the provisions of subsections (c) and (k) of this section 38
68	68	and shall also submit to the commissioner an estimate of the qualified 39
69	69	construction expenditures and any other information prescribed by the 40
70	70	commissioner. Not later than sixty days after receipt of such plan, 41
71	71	estimate of qualified construction expenditures and other such 42
72	72	information prescribed by the commissioner, the commissioner shall 43
73	73	determine whether such plan conforms to the standards developed 44
74	74	Raised Bill No. 7114
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77	77
78	78	LCO No. 5508 3 of 5
79	79
80	80	under the provisions of subsections (c) and (k) of this section. 45
81	81	(e) If the commissioner certifies that a construction plan conforms to 46
82	82	the standards developed under the provisions of subsections (c) and (k) 47
83	83	of this section, the commissioner shall reserve for the benefit of the 48
84	84	owner an allocation for a credit against the tax imposed under chapter 49
85	85	208 of the general statutes equivalent to ten per cent of the projected 50
86	86	qualified construction expenditures. 51
87	87	(f) Following the completion of the construction of residential 52
88	88	dwelling units above existing retail property, the owner shall notify the 53
89	89	commissioner that such construction has been completed. The owner 54
90	90	shall provide the commissioner with documentation of work performed 55
91	91	to construct residential dwelling units above the existing retail property 56
92	92	and shall certify the cost incurred in constructing such residential units 57
93	93	above existing retail property. The commissioner shall review such 58
94	94	work and verify its compliance with the plan. Following such 59
95	95	verification, the commissioner shall issue a tax credit voucher to either 60
96	96	the owner of the existing retail property or the taxpayer named by the 61
97	97	owner as contributing to the construction. The tax credit voucher shall 62
98	98	be in an amount equivalent to the lesser of (1) the tax credit reserved 63
99	99	upon certification of the plan under the provisions of subsection (e) of 64
100	100	this section, or (2) ten per cent of the actual qualified construction 65
101	101	expenditures. In order to obtain a credit against any tax due under 66
102	102	chapter 208 of the general statutes, the holder of the tax credit voucher 67
103	103	shall file the voucher with the holder's state tax return. 68
104	104	(g) An owner who constructs residential dwelling units above 69
105	105	existing retail property shall not be eligible for a tax credit voucher 70
106	106	under subsections (f) and (h) of this section, unless the owner incurs 71
107	107	qualified construction expenditures exceeding fifteen thousand dollars. 72
108	108	(h) (1) The Commissioner of Revenue Services shall grant a credit 73
109	109	against the tax imposed under chapter 208 of the general statutes, as 74
110	110	applicable, in accordance with the following: 75
111	111	Raised Bill No. 7114
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114	114
115	115	LCO No. 5508 4 of 5
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117	117	(A) (i) For a taxpayer, as described in subparagraph (A) of 76
118	118	subdivision (3) of subsection (a) of this section, holding a tax credit 77
119	119	voucher issued on or after January 1, 2026, pursuant to subsections (b) 78
120	120	to (g), inclusive, of this section, against the tax imposed under chapter 79
121	121	208 of the general statutes in the amount specified in the tax credit 80
122	122	voucher. 81
123	123	(ii) If the amount of the tax credit voucher exceeds the taxpayer's 82
124	124	liability for the tax imposed under chapter 208 of the general statutes, 83
125	125	the Commissioner of Revenue Services shall treat such excess as an 84
126	126	overpayment and, except as provided in section 12-242g of the general 85
127	127	statutes, shall refund the amount of such excess, without interest, to the 86
128	128	taxpayer; and 87
129	129	(B) (i) For an owner that is a nonprofit corporation holding a tax credit 88
130	130	voucher issued on or after January 1, 2026, pursuant to subsections (b) 89
131	131	to (g), inclusive, of this section, against the tax due under chapter 208 of 90
132	132	the general statutes in the amount specified in the tax credit voucher. 91
133	133	(ii) Any unused portion of such credit under this subparagraph may 92
134	134	be carried forward to any or all of the four income years following the 93
135	135	year in which the tax credit voucher is issued. 94
136	136	(2) The Commissioner of Housing shall provide a copy of any 95
137	137	voucher issued under this section to the Commissioner of Revenue 96
138	138	Services upon the request of the Commissioner of Revenue Services. 97
139	139	(i) A credit issued under this section shall not exceed (1) thirty 98
140	140	thousand dollars per dwelling unit constructed above existing retail 99
141	141	property for an owner that is not a nonprofit corporation, or (2) fifty 100
142	142	thousand dollars per such dwelling unit for an owner that is a nonprofit 101
143	143	corporation. 102
144	144	(j) The aggregate amount of all tax credits that may be reserved by 103
145	145	the Commissioner of Housing upon certification of construction plans 104
146	146	under subsections (b) to (d), inclusive, of this section shall not exceed 105
147	147	Raised Bill No. 7114
148	148
149	149
150	150
151	151	LCO No. 5508 5 of 5
152	152
153	153	three million dollars in any one fiscal year. 106
154	154	(k) The Commissioner of Housing may, in consultation with the 107
155	155	Commissioner of Revenue Services, adopt regulations in accordance 108
156	156	with the provisions of chapter 54 of the general statutes to carry out the 109
157	157	purposes of this section. 110
158	158	This act shall take effect as follows and shall amend the following
159	159	sections:
160	160
161	161	Section 1 July 1, 2025, and
162	162	applicable to taxable years
163	163	commencing on and after
164	164	January 1, 2026
165	165	New section
166	166
167	167	Statement of Purpose:
168	168	To establish a tax credit for the construction of residential dwelling units
169	169	above existing retail property.
170	170
171	171	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
172	172	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
173	173	underlined.]
174	174