The General Assembly Raised Bill No. 7114 aims to establish a tax credit program for the construction of residential units above existing retail properties in Connecticut. Effective July 1, 2025, and applicable to taxable years starting January 1, 2026, the bill defines key terms such as "dwelling unit," "nonprofit corporation," "owner," "qualified construction expenditures," and "retail property." It mandates the Commissioner of Housing to create a system for administering tax credit vouchers for eligible owners, which would amount to ten percent of qualified construction expenditures for each additional floor constructed above the retail property, with a maximum of three additional floors.

The bill outlines the process for obtaining tax credits, including the submission of construction plans and estimates to the Commissioner, who will verify compliance with established standards. Tax credits are capped at $30,000 per dwelling unit for non-profit owners and $50,000 for nonprofit corporations, with an aggregate limit of $3 million in tax credits reserved per fiscal year. Additionally, the bill allows for unused credits to be carried forward for up to four years. The Commissioner of Housing is also authorized to adopt regulations to implement the program effectively.