SB 565 - This act establishes the "Workforce Housing Tax Incentives Program". This act authorizes housing businesses, as defined in the act, to receive tax incentives for qualified new investments made for the acquisition, repair, rehabilitation, or redevelopment of a housing project in this state, as such terms are defined in the act. Housing projects shall include at least one of the following: 1) at least four single-family dwelling units, or at least two single-family dwelling units if located in a small city, as defined in the act; 2) one or more multiple-dwelling unit buildings, each containing three or more individual units; or 3) two or more dwelling units located in the upper story of an existing multi-use building. Housing projects shall also include certain rehabilitation activities, as described in the act. The Department of Economic Development shall develop a maximum average dwelling unit cost for various types of projects. Housing businesses shall apply to the Department to receive tax incentives pursuant to the act. All applications shall be reviewed and scored on a competitive basis and the Department shall notify a successful applicant of the maximum amount of tax incentives such project may receive under the act. Successful applicants shall enter into an agreement with the Department and shall pay to the Department a compliance cost fee of five hundred dollars and, if the total amount of tax incentives exceeds $100,000, an additional fee equal to 0.5% of the amount of tax incentives awarded. The maximum amount of tax incentives that may be awarded to a housing business for a housing project shall not exceed $1 million. The Department shall adjust the amount awarded to a housing business based on the final average dwelling unit cost of the housing project, as described in the act. Housing projects that violate any provision of the act shall have its tax incentives recaptured. The aggregate amount of tax incentives that may be awarded pursuant to the act for disaster recovery housing projects shall not exceed $35 million. The aggregate amount of tax incentives that may be awarded pursuant to the act for all other projects shall not exceed $35 million. Tax incentives awarded pursuant to the act shall be in the form of a refund of sales and use taxes paid on purchases that are directly related to a housing project and included in the agreement entered into with the Department, as an income tax credit in an amount equal to ten percent of a qualifying new investment if located in an urban area, as an income tax credit in an amount equal to twenty percent of a qualifying new investment if located in a small city or if the housing project is a disaster recovery housing project, or any combination of such incentives. Tax credits issued pursuant to the act shall not be refundable, but may be carried forward for five tax years and may also be transferred, sold, or assigned. This act shall sunset on December 31, 2031, unless reauthorized by the General Assembly. This act is substantially similar to HB 240 (2025) and HB 1451 (2025). JOSH NORBERG