Connecticut Senate Bill SB00755

Connecticut 2025 Regular Session

• Introduced: 1/17/25
• Refer: 1/17/25

Caption

An Act Establishing A Tax Credit For The Construction Of Residential Units Above Retail Property.

Impact

If enacted, SB00755 would amend chapter 208 of the general statutes, bringing notable changes to state tax law. The introduction of this tax credit is expected to increase the investment in mixed-use developments where residential units coexist with commercial retail spaces. Proponents argue that this will not only diversify housing options but also stimulate local economic growth by bringing more residents into urban centers, which increases foot traffic for retail businesses.

Summary

SB00755 is an act proposed by Senator Gordon to establish a tax credit aimed at promoting the construction of residential units above retail properties. This legislative initiative seeks to address housing shortages in urban areas by incentivizing developers to create dwelling units in spaces that are currently underutilized. Specifically, the bill proposes a ten percent tax credit on the corporation business tax for developers who construct additional residential floors above existing retail spaces, with a cap of three additional floors for each project. The rationale is to enhance urban living while potentially revitalizing retail spaces that may be struggling economically.

Contention

While many stakeholders support the initiative as a means to combat urban housing crises, there may be contention surrounding the implications of the tax credit on state revenues and the equitable distribution of housing opportunities. Critics could argue that such incentives could disproportionately favor larger developers at the expense of smaller, local construction businesses and that they may not adequately address affordability issues in high-demand urban areas. Moreover, the effectiveness of tax credits in truly incentivizing needed developments is often debated among public policy experts.