The Alabama Workforce Housing Tax Credit Act introduces a new tax credit program designed to encourage the development of qualified workforce housing projects across Alabama. Under this act, qualified taxpayers can claim tax credits against their state tax liability for a duration of ten years, with a maximum annual award of $2 million per project. The act allows for the carryforward of any unused tax credits for up to five years and allocates a portion of the annual award cycle cap specifically for projects in rural areas, as designated by the Alabama Housing Finance Authority. Key definitions and processes for awarding tax credits are outlined, including the requirement for project owners to obtain an eligibility certificate from the authority.

The bill, HB346, mandates that the authority implement guidelines and qualified allocation plans in line with federal law, specifically referencing 26 U.S.C. § 42. It stipulates that if any federal low-income housing credits are recaptured or disallowed, the corresponding workforce housing tax credits will also be recaptured. Furthermore, the act ensures that insurance companies claiming the tax credit will not face additional taxes and allows for the creation of reserves to fund after-school care subsidies for children living in qualified projects. The tax credit will be available for taxable years starting on or after January 1, 2025, with applications for federal low-income housing tax credits due by September 30, 2027, and the act is set to take effect on October 1, 2024.

Statutes affected:
Introduced: 27-3-29, 27-4A-3, 40-16-4, 40-18-2, 27-3-29, 40-1-50
Engrossed: 27-3-29, 27-4A-3, 40-16-4, 40-18-2, 27-3-29, 40-1-50
Enrolled: 27-3-29, 27-4A-3, 40-16-4, 40-18-2, 27-3-29, 40-1-50