Sub. H.B. No. 277 Summary

• Establishes a nonrefundable tax credit for property owners with rental policies allowing companion animals (registered dogs or cats) in dwelling units.

• Property owners may apply annually to the tax commissioner beginning in January 2026, with applications based on the prior calendar year's companion animal residency.

• Credit amount equals the lesser of $7,500 or $750 per dwelling unit multiplied by the fraction of months the companion animal resided there during the year.

• Property owners claiming the credit cannot charge nonrefundable pet fees, impose breed or size restrictions (except for dangerous/vicious dogs), or limit the number of companion animals beyond state law provisions.

• Tax commissioner shall not award more than $10 million in credits per calendar year; credit is available against income tax (individual), financial institution tax, and commercial activity tax.