Iowa Governor Proposes State LIHTC, Expansion of Workforce Housing Credit
Iowa Gov. Kim Reynolds released a proposed fiscal year 2022-23 budget this week that includes a state low-income housing tax credit (LIHTC), doubling the state workforce housing tax credit and increasing funding for the state housing trust funds. Reynolds’ $8.1 billion proposal includes a $15 million annual allocation for a new state LIHTC incentive and a boost for the workforce housing tax credit from $25 million annually to $50 million, with a doubling of the small-cities set-aside from $10 million to $20 million. Funding for the state housing trust fund would increase with the elimination of the cap for the real estate transfer tax. Reynolds’ proposal also would extend the sunset date by 10 years until June 30, 2031, and double the $10 million annual allocation for redevelopment tax credits, which apply to properties developed in brownfield or grayfield properties.