The Workforce Housing Tax Credit Act introduces a new tax credit, the Middle-Income Housing Credit (MIHTC) , by adding Section 42A to the Internal Revenue Code of 1986. This credit is designed to incentivize the creation and preservation of housing affordable to middle-income individuals, mirroring the structure of the existing Low-Income Housing Tax Credit (LIHTC). The credit amount for a qualified middle-income building is determined by an applicable percentage of its qualified basis over a 15-year credit period. The applicable percentage is set by the Secretary of the Treasury to yield a present value equal to 50% of the qualified basis for new, non-Federally subsidized buildings, and 20% for other buildings, with minimum rates of 5% and 2% respectively. This mechanism ensures a substantial incentive for developers. A project qualifies as a middle-income housing project if at least 60% of its residential units are both rent-restricted and occupied by individuals whose income is 100% or less of the area median gross income. Crucially, at least 20% of these units must not be taken into account under the existing LIHTC program, ensuring a distinct focus on the middle-income demographic. Rent-restricted units are those where gross rent does not exceed 30% of the imputed income limitation. The bill includes provisions for determining the eligible basis of new and existing buildings, allowing for rehabilitation expenditures to be treated as a separate new building. It also provides for an increase in credit for buildings located in qualified census tracts or difficult development areas, where the eligible basis can be 130% of the standard amount. This aims to support development in areas with higher costs or greater need. State housing credit agencies are responsible for allocating the credit, which is subject to a State housing credit ceiling. Agencies must use a qualified allocation plan that prioritizes projects with long-term commitments to middle-income tenants, those in areas with insufficient affordable housing, projects targeting a range of middle incomes, and those near transit hubs. A portion of the State ceiling is set aside for projects involving qualified nonprofit organizations. To ensure long-term affordability, projects must have an extended middle-income housing commitment , requiring the maintenance of middle-income units for at least 15 years beyond the credit period. This commitment includes tenant enforcement rights and protections against eviction or rent increases for existing middle-income tenants, even in cases of foreclosure. Special rules apply to rural projects, allowing income limitations to be based on the greater of area median gross income or national non-metropolitan median income. The bill also addresses various technical aspects, including at-risk rules for financing, certification requirements for taxpayers and housing credit agencies, and the Secretary's authority to prescribe regulations. These regulations will cover complex projects, short taxable years, and measures to prevent avoidance of the rules. The amendments made by this section will apply to buildings placed in service after December 31, 2025.