Bill
S 1946
Limits housing tax credits to $100M/year, with a $5M cap per project, lowers market-rate to 75%, and speeds 90-day state approval of municipal tax exemptions.
Note on source materials
- The bill text provided concerns amendments to Massachusetts housing tax-incentive law (housing development incentive program). It does not match the alternate title you supplied ("Provides for the expungement of syringe convictions"). This summary reflects the bill text as submitted (Senate No. 1946, housing development incentive program).
Summary — An Act relative to the housing development incentive program
Purpose
- Modify the state’s housing development tax-incentive rules to (1) set annual and per-project caps on credits authorized by the Executive Office of Housing and Livable Communities (EOHLC), (2) revise the definition and qualification thresholds for “housing development projects” in gateway municipalities, and (3) shorten review timelines for municipal tax-exemption agreements.
Key provisions
1. Annual authorization cap (Chapter 63, §38BB amendment)
- EOHLC may authorize up to $100,000,000 in tax credits each year under §38BB and subsection (q) of §6 of chapter 62.
- Credits returned by certified housing projects may be re-authorized in the same year.
- The annual total includes newly granted credits plus carryforwards from prior years, to the extent the Commissioner of Revenue estimates those carryforwards will offset tax liabilities that year.
- Unused portions of the $100,000,000 cap in a calendar year may be carried forward and applied to future awards.
- EOHLC must provide documentation to the Commissioner of Revenue to confirm compliance with the cap; the Commissioner must report confirmation to the Secretary of Administration & Finance and the Secretary of Housing & Livable Communities.
Per-project cap (Chapter 62, §6(q) addition)
Definition and unit-mix threshold (Chapter 40V amendments)
Expedited municipal tax-exemption approval (Chapter 40V §3 / §59 of chapter 59)
Who would be affected
- Developers of multi-unit residential rehabilitation projects in designated gateway municipalities (may qualify for larger or more accessible tax credits).
- Municipalities with approved housing development zones (faster state approval timelines).
- EOHLC and Commissioner of Revenue (additional reporting and oversight responsibilities).
- State finances/taxpayers — potential fiscal impact from up to $100 million annually in credits and up to $5 million per project.
Procedural status (as provided)
- Introduced: January 17, 2025 (filed); legislative entries list multiple referrals and actions. Reported and advanced through Senate stages, with “Passed Senate” and delivery to the Assembly noted (May 29, 2025). Currently listed as REFERRED TO CODES; a hearing was scheduled for 09/15/2025 per provided actions. (Source materials contain duplicate and inconsistent timeline entries—review official legislative docket for current status.)
Potential impacts and considerations
- By lowering the market-rate unit threshold (80% → 75%), the bill may allow projects with a larger affordable-unit component to qualify, potentially increasing affordable housing production in gateway areas while still incentivizing private investment.
- The $100M annual cap and $5M per-project limit set predictable program size but could represent forgone state revenue; the bill adds reporting to monitor compliance and fiscal exposure.
- Faster state approval of municipal tax-exemption agreements (90 days) aims to reduce development delays.
- Exact fiscal effects depend on program take-up; agencies will need to estimate revenue offsets and monitor carryforwards.
For the most current status and official text, consult the Massachusetts legislative docket for Senate No. 1946.
Compiled from official sources — confirm details with the bill’s official record.
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