An Act promoting housing affordability through tax relief

This bill creates a state tax credit for owners of small, unsubsidized rental properties (2 to 4 units) to help lower their effective rent for low-income residents. To qualify, the property must rent to tenants earning no more than 70% of the local median income or to elderly and young households, while excluding family members of the owner. Owners can claim a credit equal to the difference between the current rent and the maximum affordable rent limit, capped at $2,000 per unit and limited to six units total, with the ability to carry forward unused credits for up to three years. The law also adjusts a separate tax provision to allow municipalities to use up to 25% of their tax revenue to pay off debts owed on land parcels. These changes take effect for tax years starting on or after January 1, 2023.