House Bill No. [insert number] introduces a new workforce housing tax credit aimed at incentivizing investment in qualified housing projects in Montana. Starting from tax years beginning on or after January 1, 2026, taxpayers who own an interest in a qualified project, which has received an eligibility statement from the board of housing, can claim a credit against various taxes, including income tax and insurance premium taxes. The bill outlines the process for allocating these credits, stipulating that the board of housing will use a qualified allocation plan and issue eligibility statements upon final cost certification. The total amount of credits allocated in any year is capped at $1.5 million, plus any unallocated or revoked credits from previous years.

Additionally, the bill amends Section 15-30-2303 of the Montana Code Annotated to include the workforce housing tax credits among those subject to review by the interim committee. This ensures that the effectiveness and impact of the new tax credits will be evaluated periodically. The bill also specifies that if a taxpayer's credit exceeds their tax liability, they may carry forward the unused credit for up to five years. Furthermore, it establishes that developers of qualified projects cannot claim credits beyond their developer's fee and outlines the conditions under which the credits may be recaptured if federal low-income housing credits are disallowed. The act is set to apply to tax years beginning after December 31, 2025.

Statutes affected:
LC Text: 15-30-2303
HB0021_1(1): 15-30-2303
HB0021_1(2): 15-30-2303
HB0021_1(3): 15-30-2303
HB0021_1(4): 15-30-2303
HB0021_1: 15-30-2303