H.R. 8626: Workforce Housing Tax Credit Act

The Workforce Housing Tax Credit Act is a legislative proposal designed to support the development of housing for middle-income individuals and families. The key components of the bill include:

Tax Credit for Middle-Income Housing Development

The bill proposes a tax credit aimed at encouraging the construction and renovation of housing specifically intended for middle-income residents. The tax credit provisions will amend the Internal Revenue Code, providing financial incentives for developers to engage in such housing projects.

Eligibility and Qualifications

To qualify for the tax credit, housing projects must meet certain criteria defined within the bill. This includes:

• Definition of "qualified middle-income housing."
• Specifications regarding the percentage of tax credit applicable to eligible projects.

Supportive Services and Income Limitations

The bill also addresses the need for supportive services for residential tenants living in the middle-income housing units. It sets income limitations for who can occupy these units while providing guidelines on how units retain their middle-income classification even if occupants' incomes rise over time.

Allocation Rules and Housing Credit Amounts

This section establishes the rules for determining the amount of housing credit allocated to projects, including:

• State housing credit ceilings and how they can be adjusted for rural projects.
• Responsibilities outlined for housing credit agencies.
• Requirements for certification and reports that must be submitted to the Secretary of the Treasury or relevant authority.

Funding, Costs, and Regulatory Guidelines

The act lays out the necessary steps for determining the funding levels, tax benefits, and overall costs associated with developing middle-income housing. It also sets forth:

• Regulatory guidelines to ensure compliance with the provisions of the bill.
• Certification requirements for subsidies granted under the program.
• Effective dates that apply to projects initiated on or after December 31, 2025.

Relevant Companies

None found