House Bill No. [insert bill number] introduces a new workforce housing tax credit program in Montana, effective for 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 this credit against various taxes, including income tax and insurance premium taxes. The board of housing will allocate these credits based on a qualified allocation plan, with a total cap of $1.5 million in credits per allocation year, plus any unallocated or revoked credits from previous years. The credit can be claimed for six years, and if it exceeds the taxpayer's liability, it can be carried forward for up to five 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 revenue interim committee. This ensures that the effectiveness and impact of the new tax credits will be evaluated alongside other tax credits during specified biennial reviews. The bill also includes provisions that prevent developers from claiming credits beyond their fees and distributions allowed by the board of housing, and it establishes that the board cannot allocate tax credits after December 31, 2031.

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