Now that the 21st Century ROAD to Housing Act has been enacted, attention has turned to the proposed Workforce Housing Tax Credit Act (H.R. 8626 / S. 3436). Introduced by Representative Jimmy Panetta (D-CA-19) and Senator Jerry Moran (R-KS), the bill would establish a program modeled on the existing Housing Credit program but targeted to a higher income band. Like the Housing Credit, the Workforce Housing Tax Credit (WHTC) would provide states with housing credits that can be allocated to support affordable housing development. Unlike the traditional housing tax credits, however, WHTC credits would be directed toward housing development serving households with incomes between 60% and 100% of area median income, and the legislation permits states to convert these credits to benefit lower-income households should they choose to do so.
The WHTC seeks to address a frequently overlooked segment of the housing crisis: workforce housing. Public discussion and policy attention have often focused on housing for very low-income households, yet shortages extend well beyond those communities. In many markets, recent construction has skewed toward either single-family homes or large multifamily developments, contributing to a persistent “missing middle” — the townhouses, duplexes, and cottage-style homes that historically served working-class families. The diminishing supply of this housing type can force households into housing they cannot sustainably afford or displace potential households with more modest means.
This proposal is not entirely new. Senator Ron Wyden (D-OR) and others have advanced similar measures in the past, and the underlying market dynamics remain largely unchanged. What has shifted is congressional recognition of, and willingness to act on, the breadth of the housing shortage. The bipartisan passage of the ROAD to Housing Act represented a significant victory for affordable housing providers and lower-income tenants. Building on that momentum, the WHTC represents a potential next step toward expanding affordable housing options for the workforce.