This bill establishes a new deduction under the Gross Receipts and Compensating Tax Act for the sale of construction materials and labor specifically used in the development of affordable multifamily residential housing projects. The deduction is applicable until July 1, 2033, and can be claimed if the materials and labor are sold to a qualifying grantee under the Affordable Housing Act, and the housing units being developed are designated as affordable housing. The bill also mandates that the cost of this deduction be included in the tax expenditure budget.

Additionally, the bill defines key terms related to affordable housing, including "affordable housing," "building," "low or moderate income," and "multifamily residential housing." The effective date for the provisions of this act is set for July 1, 2026.