Workforce Housing Tax Credit Program
Forecasted
Workforce Housing Tax Credit Program supports housing developers building affordable rentals for low-income Alabama families near growing employers, expanding housing options in areas of job growth.
Funder: Alabama Housing Finance Authority
Due Dates (Anticipated): January 2027 (Full application) | September 2027 (NOI Log) | September 2027 (NOI Package)
Funding Amounts: Up to $2,000,000 in state tax credits per project per award cycle; $5,000,000 annual base allocation
Summary: Supports new affordable rental housing for low-income Alabama families near employers with expanding or recently created jobs.
Key Information: Projects must have a successful federal Low-Income Housing Tax Credit application; bond projects require advance Notice of Intent approval.
Description
The Alabama Housing Finance Authority (AHFA) administers this state tax credit program to encourage investment in affordable rental housing near growing employment centers. Established by the Alabama Workforce Housing Tax Credit Act in 2024, it seeks to increase housing options for low-income Alabamians pursuing employment in areas of economic growth. Qualified taxpayers receive a dollar-for-dollar reduction in certain Alabama state tax liabilities.
The program supports new construction available to families and operates alongside federal Low-Income Housing Tax Credits and, where applicable, Multifamily Housing Revenue Bonds. AHFA’s Workforce Housing Tax Credit Policy incorporates its Housing Credit Qualified Allocation Plan (QAP) and Multifamily Bond Policy. Allocation priorities include rural areas within high-job-growth counties, childcare assistance, and financially feasible housing developments.
