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HOUSE DOCKET, NO. 2957 FILED ON: 1/19/2023
HOUSE . . . . . . . . . . . . . . . No. 2969
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Andres X. Vargas
_________________
To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:
The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
An Act providing a local option incentivizing landlords to rent unsubsidized properties at below
market rent (good landlord tax credit).
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PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Andres X. Vargas3rd Essex1/19/2023Patrick M. O'ConnorFirst Plymouth and Norfolk2/13/2023 1 of 3
HOUSE DOCKET, NO. 2957 FILED ON: 1/19/2023
HOUSE . . . . . . . . . . . . . . . No. 2969
By Representative Vargas of Haverhill, a petition (accompanied by bill, House, No. 2969) of
Andres X. Vargas and Patrick M. O'Connor relative to providing for a local option tax credit for
certain landlords. Revenue.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Third General Court
(2023-2024)
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An Act providing a local option incentivizing landlords to rent unsubsidized properties at below
market rent (good landlord tax credit).
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 SECTION 1. Section 6 of chapter 62 of the General Laws, as most recently amended by
2chapter 179 of the acts of 2022, is hereby further amended by inserting after subsection (bb) the
3following subsection:-
4 (cc)(1) As used in this subsection, the following words shall have the following meanings
5unless the context clearly requires otherwise:
6 “Qualified residential rental property”, any unsubsidized 2- to 4-unit residential rental
7property.
8 “Qualified rental unit”, a tenant-occupied unit in a qualified residential rental property
9with rent, including utilities, that does not exceed the maximum HOME rent limits for the
10participating jurisdiction as defined by the United States Department of Housing and Urban 2 of 3
11Development; provided, however, that “qualified rental unit” shall not include a unit rented to
12immediate family members or dependents of the owner.
13 “Qualified tenants”, low-income persons of protected classes in accordance with section
144 of chapter 151B, seniors and families with small children.
15 “Seniors”, Persons who are 65 years of age or older.
16 (2) Any resident who is an owner of a qualified residential rental property located in the
17commonwealth who is not a dependent of another taxpayer shall be allowed a credit for the
18difference between the maximum HOME rent limit for the participating jurisdiction as defined
19by the United States Department of Housing and Urban Development and the amount charged in
20rent; provided, however, that the credit shall not to exceed $2,000 for each qualified rental unit;
21and provided further, that the resident shall not be allowed the credit under this subsection for
22more than 6 qualified rental units. The credit shall be prorated by the number of months the
23qualified rental unit is rented to a qualified tenant; provided, however, that joint owners of a
24qualified residential rental property shall share any credit available to the property under this
25subsection in the same proportion as their ownership interest.
26 Any taxpayer entitled to this credit for any taxable year, the amount of which exceeds the
27taxpayer’s total tax due for the current taxable year, may carry over the excess amount, as
28reduced from year to year, and apply the excess amount to the taxpayer’s tax liability for any 1
29or more of the next succeeding 3 taxable years; provided, however, that in no taxable year may
30the amount of the credit allowed exceed the total tax due of the taxpayer for the relevant taxable
31year. 3 of 3
32 The exemption provided for in this subsection shall be in addition to any other
33exemptions allowed by law.
34 The commissioner shall promulgate regulations necessary for the administration of this
35subsection.
36 SECTION 2. A city or town, by vote of its town meeting, town council or city council,
37with the approval of the mayor, where required by law, may exempt a qualified residential rental
38property from property taxation. The amount of the exemption shall be determined by the
39municipality but shall not exceed an amount equal to the tax otherwise owed on the property
40based on the assessed value of the property. Further, such exemption is limited to a percentage,
41as determined by the city or town, of the difference between the maximum HOME rent limit for
42the participating jurisdiction as defined by the United States Department of Housing and Urban
43Development and the pro rata amount of rent per unit.
44 Nothing in this act shall limit the authority of a city or town to provide additional relief
45from local property taxes to incentivize renting residential units to low-income families with
46children and seniors.
47 The owner of a dwelling qualifying for exemption under this section shall submit to the
48municipality or its agent documentation, including but not limited to a signed lease, necessary to
49confirm the eligibility of the rental.
50 SECTION 3. This act shall be effective for tax years beginning on or after January 1,
512023.