Working Families Housing Tax Credit Act

This bill creates a new tax credit for working families housing development and authorizes grants and loans for related infrastructure projects. It amends the Internal Revenue Code to add a new section 42A, which provides a 15-year tax credit for qualified working families buildings, and establishes a program for infrastructure grants and loans to local governments in rural and exurban areas.

Sec. 3, Working families housing tax credit: This section adds a new tax credit for qualified working families buildings. The credit amount equals the applicable percentage of the qualified basis of each building. The applicable percentage is set by the Secretary to yield a present value equal to 50% of the qualified basis for new buildings and 60% for other buildings, with a minimum credit rate of 5% for non-federally subsidized buildings and 2% for federally subsidized ones. The qualified basis is the smaller of the unit fraction or floor space fraction of the eligible basis. Eligible basis is generally the adjusted basis of a new building or, for existing buildings, the adjusted basis if acquired at least 10 years after last placement in service. Rehabilitation expenditures can be treated as a separate new building if they meet minimum expenditure thresholds. The credit period is 15 years, with special rules for the first year and for increases in qualified basis.

Sec. 4, Loans and grants for infrastructure projects: The Secretary must make grants and below-market-rate loans to local governments in rural and exurban areas for covered infrastructure projects (electricity, water, sewers, local access roads, and others as determined) carried out in connection with qualified working families housing projects. For electricity projects, priority must be given to clean energy projects. $100,000,000 is authorized to be appropriated for this purpose.