Bill > HB306

This bill provides a tax credit for landlords in Montana who rent dwellings at rates below market value. The credit is available to individual and corporate income taxpayers who charge rent less than 110% of the fair market rent for their county. Specifically, landlords can claim $200 for every $100 that their rent is below the 110% fair market rate threshold. To qualify, the rental property must have a lease of at least one year and meet housing quality standards defined by the U.S. Department of Housing and Urban Development. The tax credit cannot exceed the taxpayer's income tax liability but can be carried forward for up to three years. The credit is not applicable for properties already receiving rent limitations through other benefit programs, and the tax department can disallow the credit if the landlord and tenant are not dealing at arm's length. Landlords must provide documentation like lease agreements and utility cost information when claiming the credit. The underlying purpose is to incentivize affordable housing by providing a financial benefit to landlords who offer below-market rental rates. The bill will apply to income tax years beginning after December 31, 2025, and will be subject to periodic review by the state's revenue interim committee.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3243