HB346 Summary

• Establishes the Alabama Workforce Housing Tax Credit Act, creating a state tax credit for qualified workforce housing projects placed in service on or after January 1, 2025.

• Sets award cycle cap at $5,000,000 annually for the 10-year credit period, with maximum annual awards of $2,000,000 per qualified project; unused credits may carry forward to subsequent years.

• Allows qualified taxpayers to claim the tax credit for 10 years and carry forward unused credits for up to 5 years; provides that credits are non-refundable and cannot offset additional taxes for insurance companies.

• Requires 20-25 percent of each award cycle's funding be reserved for qualified projects in rural areas designated by the Alabama Housing Finance Authority; remaining funds awarded to four percent qualified projects without geographic limitation.

• Grants preference to applications offering furnished children's activity centers for after-school care or subsidized after-school care (up to $1,000 per unit annually or $50,000 per year) for grades K-8 students for at least three years; applications must be submitted by September 30, 2027.