House Bill No. [insert bill 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 total amount allocated cannot exceed $1.5 million per year, plus any unallocated credits from previous years. The credits can be claimed for a period of six years and can be carried forward for up to five years if they exceed the taxpayer's liability.

Additionally, the bill amends Section 15-30-2303 of the Montana Code Annotated to include the workforce housing tax credits among those that must be reviewed by the revenue interim committee during specified biennial periods. This ensures ongoing oversight and evaluation of the effectiveness of the tax credits. The bill also includes provisions that prevent developers from claiming credits beyond their developer's fee and outlines the definitions of key terms such as "allocation year," "developer," and "qualified project." 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