# Summary of H.R. 6686: Workforce Housing Tax Credit Act
This bill creates a new federal tax credit for middle-income housing, modeled after the existing low-income housing tax credit but targeting families earning up to 100 percent of area median income. Developers and investors in qualified middle-income rental housing projects can claim annual tax credits over a 15-year period, with credit amounts based on project costs and financing structures. The credit is designed to incentivize construction and rehabilitation of rental housing affordable to working families who earn too much to qualify for low-income housing programs but still struggle with housing costs.
The bill allocates housing credit funding through state housing agencies, with each state receiving an annual credit ceiling based on population (a minimum of $1.5 million per state, adjusted annually for inflation) plus unused credits from prior years. States must develop allocation plans prioritizing projects that serve tenants long-term, address housing shortages, serve mixed-income households, and locate near transit. The legislation includes a 5 percent bonus credit for rural projects and allows states to transfer credits between the middle-income and low-income programs as needed.
The credit applies to buildings placed in service after December 31, 2023, and includes various safeguards such as extended affordability commitments (15 years after the credit period ends) and tenant protections preventing evictions or rent increases during specified periods. The bill directs the Treasury Department to coordinate with the Department of Housing and Urban Development to streamline definitions and requirements for properties receiving federal housing assistance.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.