ID H0408

Creates the Middle Income Property Development Tax Credit beginning in tax year 2025 for developers who build and sell deed-restricted homes to households earning at or below 120% of area median income, with the credit amount equaling the difference between the sale price and appraised value

Requires deed-restricted properties to remain restricted for at least 60 years, with purchasers limited to reselling at capped appreciation rates (inflation-adjusted value, 25% of market appreciation, or maximum 5% annual increase)

Establishes the Middle Income Land Trust Tax Credit for taxpayers who donate fee simple land to qualifying 501(c)(3) land trusts, providing a 50% credit for donations to trusts serving households at or below 80% of area median income, or 40% for trusts serving households at 80-100% of area median income

Requires land trust lessees to have income at or below 100% of area median income, liquid assets not exceeding $25,000, and use the housing as their primary residence under a minimum 99-year lease

Excess credits may be carried forward for up to 10 taxable years, and the act applies retroactively to January 1, 2025