Texas SB653 allows for the refund of sales and use taxes on building materials used in subsidized affordable housing projects.

Texas SB653 amends the Tax Code to provide a refund for sales and use taxes paid on building materials used in the construction of subsidized affordable housing. Qualifying affordable housing must be located in Texas, subsidized by a federal or state tax credit, and receive the tax credit on or after September 1, 2025. A person can claim up to $100,000 in refunds per calendar year for single-family homes and $100,000 in refunds per 180-day period for residential units in apartment complexes. The total annual refunds are capped at $2 million, allocated on a first-come, first-served basis.

Texas SB653 allows for the refund of sales and use taxes on building materials used in subsidized affordable housing projects.

Texas SB653 amends the Tax Code to provide a refund for sales and use taxes paid on building materials used in the construction of subsidized affordable housing. Qualifying affordable housing must be located in Texas, subsidized by a federal or state tax credit, and receive the tax credit on or after September 1, 2025. A person can claim up to $100,000 in refunds per calendar year for single-family homes and $100,000 in refunds per 180-day period for residential units in apartment complexes. The total annual refunds are capped at $2 million, allocated on a first-come, first-served basis.