SB 673 - This act creates a new income tax credit for purchasers of blighted homes. The taxpayer must apply to the local land clearance for redevelopment authority for the credit. Such authority may prescribe rules for application for the credit and require evidence that the eligibility requirements have been met.
To be eligible for the credit, the taxpayer must not have owned a home in the last 3 years, use the property as a single family residence, and have an income at the time of purchase below the amount required to qualify for affordable housing assistance.
For the property to be eligible for the credit it must be eligible for a tax abatement certificate and have had an application for such submitted. The property must also have been vacant for six month's prior to purchase, be blighted, and likely to meet the definition of an affordable housing unit.
The amount of the tax credit shall be $5,000. The tax credit is nonrefundable and nontransferable but may be carried back 3 years and carried forward 5 years. Clawback provisions are included for taxpayers that fail to use the property as an owner-occupied principal residence fro two years without approval from the authority.
This act is similar to SB 390 (2015).