Tax Relief Initiatives Could Offset Rising Housing Costs

Connecticut residents could see an increase of $80 on their annual home insurance costs due to higher tariffs on housing goods. 

According to a report by the Council for Community and Economic Research, housing costs in the state are 35% higher than the national average. 

Legislators are considering HB 5977, which provides a sales tax exemption for tangible personal property used in the construction or rehabilitation of a mixed-income development. 

Testifying before the legislature’s Finance, Revenue, and Bonding Committee, CBIA’s Chris Davis noted that “HB 5977 will incentivize developers to undertake more affordable housing projects, helping address the current housing shortage while providing more options for residents.”

This bill is similar to SB 1262, a CBIA-backed proposal that reduces the sales tax to 3% for goods used in new housing projects that contain a certain amount of affordable units. 

SB 1262 is awaiting action in the Senate after winning unanimous approval from the Housing Committee.

The Finance Committee approved HB 5977 during its April 24 meeting. It now awaits a vote in the House. 

For more information, contact CBIA’s Grace Brangwynne (860.244.1163).