SB250 Summary

• Establishes the Alabama Workforce Housing Tax Credit Act to provide tax credits to qualified taxpayers owning interests in qualified workforce housing projects located in Alabama, with credits claimable for 10 years.

• Sets an annual award cycle cap of $5,000,000 per year, with maximum annual awards of $2,000,000 per qualified project, allowing carryforward of unused credits for five succeeding years.

• Requires at least 20 percent but not more than 25 percent of annual award cycle cap to be allocated to qualified projects in rural areas designated by the Alabama Housing Finance Authority.

• Requires qualified allocation plan to provide preference for projects with furnished children's activity centers for after-school care (K-8) at no cost to providers, or project owners subsidizing after-school care costs by lesser of $1,000 per year per participating student or $50,000 annually.

• Limits tax credit applications to those submitted by September 30, 2027, allows credits only for taxable years beginning January 1, 2025 or later, and becomes effective October 1, 2024.