MADISON — The Wisconsin Housing and Economic Development Authority (WHEDA) is now accepting applications for the upcoming round of federal and state tax credits, which finance affordable workforce housing. 

The application period for the highly competitive 2024 housing tax credit program runs from Nov. 17, 2023, until Jan. 26, 2024. The application process covers federal 9% as well as state 4% and federal 4% tax credits.

“We urge all developers interested in creating affordable housing to submit an application for this important funding tool to help address the desperate need in Wisconsin,” said Elmer Moore, Jr., CEO and Executive Director of WHEDA. 

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. 

The 2023-24 Qualified Allocation Plan(QAP) provides the framework for Housing Tax Credit allocation. The QAP is prepared in accordance with Section 42(m)(I)(A)(i) of the Internal Revenue Code of 1986 and goes beyond the statutory requirements established through Congressional mandates to address Wisconsin’s affordable housing needs. 

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. 

Find more detail about the 2023-24 Qualified Allocation Plan. To keep up-to-date with WHEDA news and information, sign up to receive emails here and follow us on Facebook, Twitter and LinkedIn.

For 50 years, WHEDA has worked to provide low-cost financing for housing and small business development in Wisconsin. Since 1972, WHEDA has financed more than 87,300 affordable rental units, helped more than 138,300 families purchase a home, and provided more than 29,200 small business and agricultural loan guarantees. WHEDA is a self-supporting public corporation that receives no tax dollars for its operations. For more information on WHEDA programs visit wheda.com or call 800-334-6873.