Working Families Housing Tax Credit Act

H.R. 893 would amend the Internal Revenue Code to establish a new tax credit program for working families housing development. The bill would create financial incentives for developers to build and preserve rental housing affordable to families earning up to 100% of their area's median income. This would target workers such as teachers, nurses, police officers, and other professionals who earn too much to qualify for existing low-income housing programs but lack sufficient income to afford market-rate housing in their communities.

The tax credit would be allocated to states based on population and distributed through state housing finance agencies. Developers would receive tax credits over a 15-year period to offset construction and rehabilitation costs. The bill would allow states flexibility to direct credits toward rural areas or transfer unused allocations to existing low-income housing programs. If enacted, the legislation could help address housing affordability challenges for middle-income working families, though the bill remains in committee and has not yet been voted on by the full House.