A new bill, the Workforce Housing Tax Credit Act, has been introduced in both the House and Senate with bipartisan support. This legislation would allow state housing agencies to allocate tax credits to developers who can then sell them to investors. In return, investors would receive a dollar-for-dollar reduction in their federal tax liability over a 15-year period while developers use the equity to construct apartments.
According to a joint statement from the National Multifamily Housing Council (NMHC) and National Apartment Association (NAA), this proposal has garnered widespread backing from rental housing providers, advocates, and other stakeholders within the housing industry. NMHC president Sharon Wilson Géno and NAA president & CEO Bob Pinnegar stated that this bill would complement the already successful Low-Income Housing Tax Credit by expanding it to include moderate-income households facing rising housing costs. They added that it could also help increase available housing supply nationwide which will ultimately alleviate affordability challenges for many individuals seeking access to affordable homes.
This news was originally published on Connect CRE’s website.
