House Bill No. [insert bill number] proposes an income tax credit for property owners who rent dwellings below market rate in Montana. The bill allows both individual and corporate income taxpayers to claim a credit against their tax liability for renting a dwelling at less than 110% of the fair market rent for the county. The credit is calculated at $200 for each $100 by which the rent is below this threshold, with a maximum credit that cannot exceed the taxpayer's income tax liability. Additionally, the credit can be carried forward for up to three years. To qualify, the rental must be under a lease agreement of at least one year and meet specific housing quality standards. The bill also stipulates that the credit cannot be claimed if the rent is already limited due to participation in other programs.

The bill 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 subject to review by the interim committee. It also includes provisions for codification and specifies that the act will apply to income tax years beginning after December 31, 2025. The bill aims to incentivize landlords to provide affordable rental housing, thereby addressing housing affordability issues in the state.

Statutes affected:
LC Text: 15-30-2303
HB0306_1(1): 15-30-2303
HB0306_1(2): 15-30-2303
HB0306_1(3): 15-30-2303
HB0306_1: 15-30-2303