Iowans deserve housing that is affordable, safe and high quality. House File 2448 seeks to increase good housing for middle-class families throughout the state by providing incentives to build and rehabilitate housing in the areas that need it the most.
In many areas across the state, older housing needs to be rehabilitated and repaired. In other areas, there may be a need for new construction in fast-growing communities. A new Workforce Housing Tax Credit program will encourage redevelopment of dilapidated housing, brownfield areas and upper-story apartments in multi-use buildings, as well as new construction in communities with demonstrated workforce housing needs.
The Workforce Housing Tax Credit will provide two different incentives. The first is a refund of the sales and use taxes directly related to the housing project. The second is an investment tax credit up to 10 percent of the qualifying new investment in the housing project. The investment tax credit is nonrefundable but may be credited to the investor’s tax liability for five years.
Tax incentives will go to housing businesses that complete housing projects that meet specific requirements. For example, the project must be supported by the local community, receive matching funds, adhere to local safety standards and meet the United States Department of Housing & Urban Development’s housing quality standards.