Bipartisan Workforce Housing Tax Credit Act Introduced
Bipartisan legislators in both the House and Senate introduced the Workforce Housing Tax Credit Act, which would establish a new tax credit to produce affordable rental housing for households earning 100% or less of the area median income (AMI). Sponsored in the Senate by Sens. Ron Wyden (D-Ore.) and Dan Sullivan (R-Alaska), along with Reps. Jimmy Panetta (D-Calif.) and Mike Carey (R-Ohio) in the House, this bill builds on the successful Low-Income Housing Tax Credit (LIHTC), which finances the construction of rental housing generally serving households earning up to 60% of AMI.
Under the Workforce Housing Tax Credit Act, federal tax credits would be allocated to each state, and states would use a competitive application process to award credits to builders. The bill would also allow projects to leverage both LIHTC and the proposed workforce housing credit, which would enable developers to serve a broader income range within a project. And recognizing the diverse affordable housing challenges within each state, and to ensure the proposed workforce housing credit does not divert resources from LIHTC, states would have the option to convert workforce housing credits to LIHTCs.
NAHB strongly supports LIHTC and actively advocates for additional resources to match the unprecedented demand for affordable rental housing. But LIHTC is only part of the solution, as middle-income families also face severe affordable workforce rental housing shortages, which forces workers to choose between rent burden, long commutes or the job. Nurses, teachers, police officers and fire fighters deserve affordable housing options in the communities they serve.
The Workforce Housing Tax Credit Act would complement the success of LIHTC and is exactly the type of solution we need Congress to enact in order to begin solving the housing affordability crisis.
Latest from NAHBNow
Sep 23, 2025
HUD Cuts All Multifamily Mortgage Insurance Premiums to 25 Basis PointsThe Federal Housing Administration (FHA) announced that effective Oct. 1, it is reducing the FHA multifamily mortgage insurance premiums for all multifamily programs to 25 basis points.
Sep 22, 2025
What Do You Predict for the Housing Industry in 2026?What will 2026 bring for your business? Share your insights and predictions for the coming year by completing Pro Builder’s 2026 Housing Forecast Survey by Oct. 8.
Latest Economic News
Sep 23, 2025
Beyond the Official Unemployment Rate: A Deep Dive into U.S. UnemploymentIn August, the official, or standardly referenced, unemployment rate rose slightly to 4.3%, up from 4.2% in July. This marks the highest level in nearly four years, though it remains historically low.
Sep 22, 2025
Single-Family Homes Are Built Faster in 2024Building a new single-family home took less time in 2024 compared to the previous two years. On average, it now takes 9.1 months from start to finish.
Sep 19, 2025
State-Level Employment Situation: August 2025The latest government state employment report paints a mixed picture of the job market. While a few states saw modest employment gains, most areas showed little to no progress. The pace of hiring appears to be slowing, raising concerns about the strength of the recovery.