The Alabama Workforce Housing Tax Credit Act introduces a new tax credit program designed to encourage the development of qualified workforce housing projects throughout 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 mandates that a minimum of 20% but no more than 25% of the award cycle cap be allocated to projects in designated rural areas. The Alabama Housing Finance Authority will oversee the implementation and administration of the program, including the issuance of eligibility certificates to certify qualifying projects.

Additionally, the bill includes provisions that require project owners to support after-school care for children living in qualified projects, either by providing a children's activity center or subsidizing care costs for at least three years. The workforce housing tax credit will not be available to taxpayers applying for federal low-income housing tax credits after September 30, 2027, but protections are in place for applications submitted before this date. The tax credit can only be claimed for taxable years beginning on or after January 1, 2025, and the act is set to take effect on October 1, 2024. The bill also specifies that if any federal low-income housing credits are recaptured, the corresponding portion of the workforce housing tax credits must also be recaptured by the qualified taxpayer.

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