Bill > HR8626

This bill, titled the "Workforce Housing Tax Credit Act," proposes to amend the Internal Revenue Code of 1986 to establish a new tax credit for middle-income housing. This credit, known as the "middle-income housing credit," would be calculated based on the "applicable percentage" and the "qualified basis" of a "qualified middle-income building." The "applicable percentage" is determined by the Secretary of the Treasury and is designed to yield a present value of the credit over 15 years, with specific percentages for new and existing buildings, and minimum credit rates. A "qualified middle-income building" is part of a "qualified middle-income housing project," which requires at least 60% of its residential units to be "rent-restricted" and occupied by individuals earning 100% or less of the area median gross income, with at least 20% of those units not being counted under existing low-income housing tax credit rules. The bill outlines detailed provisions for calculating the "qualified basis," defining eligible basis for new and existing buildings, handling rehabilitation expenditures, and establishing a 15-year "credit period." It also includes mechanisms for allocating the credit through state housing credit agencies, with specific set-asides for projects involving qualified nonprofit organizations and provisions for rural development projects. The credit is intended to encourage the development and preservation of housing for middle-income individuals and families, with an effective date for buildings placed in service after December 31, 2025.