The Wisconsin Housing and Economic Development Authority (WHEDA) announced it is now accepting applications for the upcoming round of federal and state tax credits, which finance affordable workforce housing.
The application period for the 2024 housing tax credit program runs until Jan. 26. The application process covers federal 9% as well as state 4% and federal 4% tax credits.
For the 2023 period, WHEDA awarded $32.4 million in federal and state tax credits to create nearly 1,200 affordable housing units. The awards are supporting 22 projects in 11 counties statewide; the application process drew requests totaling $59 million.
WHEDA is the sole administrator for federal and state affordable housing tax credits in Wisconsin. The programs do not subsidize renters; instead, they provide tax incentives through the Internal Revenue Code and the Wisconsin tax code that encourage developers to create affordable housing. In exchange for the tax credits, developers agree to reserve housing units for low- and moderate-income households.
WHEDA awards tax credits to developers who then sell the credits to private investors to obtain funding. Once the housing project is available to tenants, investors can claim the tax credit as a dollar-for-dollar reduction of federal income taxes owed over a 10-year period. The affordable units are reserved for low- and moderate-income households for at least 30 years.
Additional information about the 2023–24 Qualified Allocation Plan is available here.
