A bill for an act relating to the allocation of workforce housing tax incentives available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.

2025-2026 Regular Session Introduced by Brett Barker and 9 co-sponsors

HF 208 allocates $35M in tax credits for workforce housing, reserving $17.5M for small cities, boosting housing development and economic growth statewide.

Subcommittee recommends passage.

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Summary of Bill HF 208

Bill Number: HF 208
Title: A bill for an act relating to the allocation of workforce housing tax incentives available against the individual and corporate income taxes, the franchise tax, the insurance premiums tax, and the moneys and credits tax.
Status: Subcommittee recommends passage.
Introduced: February 05, 2025
Classification: Bill
Subject Areas: Corporate taxes, franchise taxes, housing, income taxes, insurance, moneys and credits taxes, tax credits, taxation, workforce development.

Purpose and Intent

The primary purpose of HF 208 is to amend the existing workforce housing tax incentives program. This bill aims to enhance the allocation of tax credits for housing projects, particularly focusing on supporting housing developments in small cities and ensuring a balanced distribution of resources across the state.

Key Provisions

Tax Credit Allocation Limit: The bill maintains the overall cap for economic development tax credits at $170 million per fiscal year, with a specific allocation for workforce housing tax incentives set at $35 million.

Small Cities Reservation: Of the $35 million allocated for workforce housing tax incentives, $17.5 million is specifically reserved for qualified housing projects located in small cities. These cities are defined under section 15.352 and must have projects registered on or after July 1, 2017.

Distribution of Remaining Funds: For the remaining funds not allocated to small cities, the bill stipulates that no more than one-third of these funds can be reserved for qualified housing projects located entirely within the two most populous counties in the state. These projects must be registered on or after July 1, 2025.

Affected Parties

Housing Developers: The bill directly impacts developers of housing projects, particularly those in small cities and the two most populous counties.

Local Governments: Small cities may benefit from increased funding for housing projects, potentially leading to economic growth and improved housing availability.

Taxpayers: The allocation of tax incentives may influence the overall tax structure, affecting individual and corporate taxpayers through adjustments in tax credits.

Procedural Aspects

Subcommittee Actions: The bill was introduced and referred to the Ways and Means Committee on February 5, 2025. A subcommittee consisting of members Vondran, Scheetz, and Wulf met on February 20, 2025, and recommended the bill for passage on February 24, 2025.

Next Steps: Following the subcommittee's recommendation, the bill will likely proceed to further legislative discussions and potential voting in the House.

Conclusion

HF 208 seeks to refine the allocation of workforce housing tax incentives, ensuring that small cities receive necessary support while also addressing housing needs in larger urban areas. By establishing clear funding reservations and limits, the bill aims to promote equitable housing development across the state.