A hearing is scheduled this Wednesday, March 3, for an employer-assisted housing (EAH) tax credit bill in Wisconsin, modeled on Illinois’ EAH tax credit, which has proven very successful in leveraging private-sector investment in workforce housing.
Employer-assisted housing refers to an way employers help their employees housing. In Illinois, an estimated $2.3 million investment in state incentives has leveraged $8 million in employer-provided housing assistance since 2000 -- which adds up to 2,000 new homeowners and $400 million in home sales, as well as another 1,500 or so families who have received credit counseling and homebuyer education.
The Wisconsin legislation, introduced by Wisconsin Sens. Lena Taylor and Judith Robson on Feb. 11, proposes a 50 percent tax credit for every dollar employers invest in housing assistance to employees. The credit is boosted to 90 percent if the assistance goes to help with a home in foreclosure -- a nod to what a versatile tool EAH is in addressing a range of community development challenges.
Already, a number of Wisconsin employers are partnering with Select Milwaukee to help their employees purchase homes and experience the bottom-line benefits of EAH, including Northwestern Mutual Life Insurance, University of Wisconsin-Milwaukee, Harley-Davidson Motor Company, and Aurora Health Care. Illinois' track record has proven state incentives will help leverage additional private-sector investment and leadership.
Across the country, advocates have been calling for federal incentives as well. MPC, the National Housing Conference, and other partners are supporting the Livable Communities Act, introduced in the House by Rep. Ed Perlmutter (D-Colo.) last week. We have proposed adding language to the bill that specifically references employer-assisted housing, to engage more employers in supporting policies and investments that coordinate workforce housing, job opportunities, and transportation options.
This proposal was shaped by lessons learned during listening sessions MPC and the Center for Housing Policy conducted with stakeholders in Atlanta and Minneapolis-St. Paul, who spoke about the barriers they've encountered while trying to coordinate housing and transportation policy and investments. The summary of those sessions points to the need for more private-sector engagement and highlights policy advances and upcoming opportunities, including the Livable Communities Act and the Sustainable Communities Partnership.
