MT HB21

Creates a workforce housing tax credit for taxpayers owning interests in qualified low-income housing projects, claimable against income tax and insurance premium taxes beginning January 1, 2026

Board of Housing will allocate credits through the qualified allocation plan process, with total annual allocations capped at $1.5 million plus any unallocated or recovered credits from prior years

Credits may be claimed for 6 years once a qualified project is placed in service, with unused credits carrying forward up to 5 additional years

Developers of qualified projects cannot directly claim credits except for developer fees and other distributions approved by the Board of Housing

Tax credit reservations terminate December 31, 2031, and the credit will be subject to periodic review by the revenue interim committee