Workforce Housing Tax Credit
Assisting Construction or Rehabilitation of Housing in Communities with Workforce Housing Needs
This program provides tax benefits to developers to provide housing in Iowa communities, focusing especially on those projects using abandoned, empty or dilapidated properties.
A Small Cities set aside for this program is available to eligible projects within the 88- least populous counties in the state.
- Total program benefits limited to $1 million per project
- The tax incentives include a refund of sales, service or use taxes paid during construction
- Developers may receive a state investment tax credit of up to 10% of the investment directly related to the construction or rehabilitation of the housing. Developers qualifying under the Small Cities set aside of this program may receive an investment tax credit of up to 20% of the investment directly related to the construction or rehabilitation of the housing. The state investment tax credit is fully transferable.
- Federal, state or local grants, tax credits, forgivable loans or other assistance not requiring repayment cannot be included for the purposes of calculating new investment
- The tax credit is based on the new investment used for the first $150,000 of value for each home or unit
- This tax credit is earned when the home or unit is certified for occupancy and can be carried forward for up to five additional years or until depleted, whichever occurs first
- Projects must meet one of four criteria:
- Housing development located on a grayfield or brownfield site
- Repair or rehabilitation of dilapidated housing stock
- Upper story housing development
- New construction in a greenfield (only communities with demonstrated workforce housing needs or a project qualifying under the Small Cities set aside)
- Developer must build or rehabilitate at least four single-family homes or at least one multi-family building containing three or more units or at least two upper story units
- Total project costs may not exceed $200,000 per unit for new construction or $250,000 per unit for historic rehabilitation. Total project costs for projects under the Small Cities set aside may not exceed $215,000 per unit
- The housing project must be completed within three years from the date the project is registered for benefits