S.B. 1203, introduced by Sen. Brian Benjamin, D-Washington Heights, on Friday, would allow landlords to claim an income tax credit equal to the difference between rent that was owed and rent that was received during the declared emergency caused by the novel coronavirus pandemic. The credit would be payable for a 10-year period beginning with the 2025 tax year, according to the bill.
The landlords would need to meet a series of requirements to be eligible for the credit including not allowing rents to be over 250% of fair market rent and limiting tenants' monthly rent to 30% of a tenant's monthly adjusted income.
Landlords would be disqualified from the credit if they previously received federal or state assistance for lost rents or began property repossession proceedings against tenants who missed rent payments.
The bill is intended in part to remove the incentive for evicting tenants who fail to pay rent due to the pandemic, according to a sponsor memo.
The measure would take immediate effect if enacted. It was sent to the Senate Housing, Construction and Community Development Committee for consideration.
--Editing by Joyce Laskowski.
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