Establish a Montana workforce housing tax credit
The implementation of HB 829 is expected to promote economic development by facilitating the availability of affordable housing, which in turn can bolster workforce stability. By providing tax credits capped at $1.5 million that can be allocated annually to qualified projects, the bill encourages investment in housing that benefits lower-income residents. Additionally, the bill allows for credits to be carried forward for up to five years if not fully utilized. This provision will enable developers to benefit from tax relief as they strive to bring these housing projects to fruition.
House Bill 829, introduced in the 68th Montana Legislature, establishes a workforce housing tax credit aimed at incentivizing the construction and development of affordable housing units across the state. The bill allows taxpayers who own an interest in qualified housing projects, as recognized by the Board of Housing, to claim a credit against certain state taxes starting from tax year 2024. This move is part of a broader effort to address housing shortages, specifically in areas lacking adequate affordable housing options for residents.
Despite the potential benefits, there are points of contention surrounding the provisions of HB 829. Critics may argue about the long-term sustainability of relying on tax credits as an incentive and whether the allocated credit limit will be sufficient to spur extensive development in high-need areas. Moreover, there is concern about the criteria set forth for what qualifies as a 'qualified project', which may limit the effectiveness of the bill if not structured inclusively enough to capture a wide range of housing developments.