HB 1225 Summary

• Establishes a landlord low-income tenant tax credit deductible from state net income tax liability for qualifying taxpayers

• Credit equals 50% of the difference between annual lease rent collected and the appraised fair market rental value of the unit, as determined by a licensed appraiser

• Applies only to qualified units (not developed as affordable housing) leased for at least six months to eligible tenants (income not exceeding 80% of area median income); excludes units with appraised property value exceeding $2,000,000

• Director of Taxation shall prepare necessary forms, may require taxpayer information to validate claims, and may adopt administrative rules under chapter 91

• Tax credits exceeding income tax liability shall be refunded to the taxpayer; claims must be filed within twelve months following the close of the taxable year; effective for taxable years beginning after December 31, 2022