Workforce Housing Tax Credit Act

Support for Middle-Income Housing: The bill provides a tax credit to encourage the development of housing specifically for middle-income individuals (Section 2(a)).

Increased Credit for High-Cost Areas: The eligible basis for new buildings or rehabilitation expenditures is increased by 30 percent if the building is located in a qualified census tract or a difficult development area (Section 2(d)(5)(B)).

Support for Rural Development: The State housing credit ceiling can be increased by 5 percent specifically for buildings located in rural areas (Section s2(h)(7)).

Incentives for Rehabilitation: Rehabilitation expenditures can be treated as a separate new building to allow for additional credit opportunities (Section 2(e)(1)).

Flexibility for High-Cost Areas: State housing credit agencies can designate buildings as requiring an increased credit to ensure financial feasibility in difficult development areas (Section 2(d)(5)(B)(iv)).

Income Restrictions on Occupants: To qualify as a middle-income housing project, at least 60 percent of the units must be occupied by individuals whose income is 100 percent or less of the area median gross income (Section 2(g)(1)(A)).

Rent Restrictions: Units within a qualified project must be rent-restricted, meaning gross rent cannot exceed 30 percent of the applicable imputed income limitation (Section s2(g)(2)(A)).

Requirement of Long-Term Commitment: To receive the credit, taxpayers must enter into an extended middle-income housing commitment, which includes various prohibitions and requirements (Section 2(h)(5)(B)).

Potential Loss of Credit for Non-Compliance: If a taxpayer fails to meet annual certification or reporting requirements, the credit may not be allowed (Section 2(k)(1)).