Bill > HB21

This bill establishes a Montana Workforce Housing Tax Credit program that allows taxpayers who own an interest in qualifying low-income housing projects to claim tax credits against various state taxes, including income, insurance premium, and other specific taxes. Beginning in tax years starting January 1, 2026, the Montana Board of Housing will allocate up to $1.5 million in tax credits annually to qualified projects, with the ability to carry forward unallocated credits from previous years. The credits can be claimed for six consecutive years after a project is placed in service, and they can be allocated to shareholders, owners, members, or partners of pass-through entities. Importantly, the credits are tied to federal low-income housing credits, meaning if federal credits are recaptured, the corresponding Montana credits will also be recaptured. Developers are prohibited from claiming credits except for their approved fees, and the program is set to expire on December 31, 2031. A "qualified project" is defined as a low-income housing building located in Montana and placed into service on or after January 1, 2026. The bill also includes a provision for the Revenue Interim Committee to review these tax credits periodically to assess their effectiveness and impact.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/20251/LC0243