This bill establishes an income tax credit for property owners who rent dwellings below market rate in Montana. The credit is available to both individual and corporate income taxpayers and allows for a credit of $200 for every $100 by which the rent is below 110% of the fair market rent for the respective county. The credit can be carried forward for up to three years and is subject to specific conditions, including a minimum one-year lease agreement and compliance with housing quality standards. Additionally, the credit cannot be claimed if the rent is already limited due to participation in other rental assistance programs.

The bill also amends Section 15-30-2303 of the Montana Code Annotated to include the new credit for renting a dwelling below market rate among the tax credits that must be reviewed by the revenue interim committee every ten years. The act is set to apply to income tax years beginning after December 31, 2023. The new provisions aim to incentivize landlords to provide affordable rental housing, thereby addressing housing affordability issues in the state.

Statutes affected:
Introduced: 15-30-2303