Refundable construction exemption provision for construction of new multifamily residential housing for first-time homebuyers

SF 2178 creates a refundable tax exemption for construction materials used in new duplexes and triplexes intended for first-time homebuyers. Developers pay sales tax upfront on construction costs but receive a refund for taxes paid on the first $460,000 of qualifying construction expenses. To qualify, the first-time homebuyer must own and occupy at least one unit in the building. The exemption applies to sales/purchases after June 30, 2025, and expires July 1, 2033. It directly affects developers building qualifying multifamily housing and first-time homebuyers who occupy the units.