The proposed 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 owners to apply for tax credits, including submitting construction plans and estimates to the Commissioner for approval. It specifies that tax credits cannot exceed $30,000 per dwelling unit for non-profit owners and $50,000 for nonprofit corporations, with an aggregate cap of $3 million in tax credits reserved per fiscal year. Additionally, the Commissioner of Housing is authorized to adopt regulations to implement the program. The bill also includes provisions for the treatment of excess tax credits and the ability to carry forward unused credits for up to four years.