IA HSB730

Defines "rehabilitation project" as a proposed housing project with single-family dwelling units intended for resale to owner-occupants, eligible for workforce housing tax incentives under existing program requirements.

Sets maximum annual tax incentives at $40 million starting fiscal year 2027 (July 1, 2026 - June 30, 2027) and each fiscal year thereafter.

Reserves 50% of annual tax incentive allocation for qualified housing projects in small cities, with unused funds transferable to other projects within the same fiscal year.

Reserves $5,000 specifically for rehabilitation projects, with 50% of that amount designated for rehabilitation projects in small cities.

Caps maximum aggregate tax incentives per housing or rehabilitation project at $1 million, with flexibility for the authority and housing business to negotiate apportionment between sales tax refunds and workforce housing investment tax credits.