Bill > HB895

This bill provides a tax incentive for individuals and corporations that construct and sell newly built single-family homes or duplexes in Montana by allowing them to exclude 50% of the income generated from such sales from their state income taxes. The exclusion applies only to sales where the sale price is less than 85% of the county's median residential value, and the tax benefit is nullified if the seller receives additional compensation that would push the total sales price above that threshold. The bill requires the state department to calculate county median residential values every two years as part of the periodic property reappraisal process, and defines "county median residential value" as the median value of a single-family residence (including land) in a county, rounded to the nearest thousand dollars. The tax provision will become applicable for income tax years beginning after December 31, 2025, and is designed to potentially encourage residential construction and make housing more affordable by providing a tax incentive to builders who sell homes at prices below the county median.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC1727