AN ACT EXEMPTING THE SALE AND USE OF CERTAIN TANGIBLE PERSONAL PROPERTY FOR MIXED-INCOME DEVELOPMENTS FROM THE SALES AND USE TAXES.

HB 5977 exempts sales and use taxes on tangible personal property (like building materials) used in developing, constructing, or operating "mixed-income developments" certified by the state commissioner. This directly affects developers and contractors working on housing projects that include units for low-to-moderate income households, as defined by HUD median income standards. The bill requires purchasers to present a commissioner's certification and a certificate confirming the property will be used exclusively for the certified mixed-income development. It creates a new tax exemption category separate from existing exemptions for nonprofit housing, effective October 1, 2025. The policy change reduces costs for qualifying development projects while maintaining tax revenue for other transactions.