Montana Bill to Create State LIHTC Moves to Governor’s Desk

Tuesday, May 4, 2021 - 11:30am

The Montana Senate narrowly passed legislation creating a state low-income housing tax credit (LIHTC) and the bill is now headed to the desk of Gov. Greg Gianforte. H.B. 397, which would create a Montana workforce housing credit that could be paired with federal LIHTCs for tax years beginning on or after Jan. 1, 2022. The statewide cap would be 50% of the federal cap for any year and would sunset at the end of 2026. The legislation passed the Senate by a 26-24 vote. Gianforte can sign or veto the bill. If he does neither, the legislation becomes law.

The Novogradac Low-Income Housing Tax Credit Handbook is an essential resource for affordable housing and includes information on the interaction between federal and state LIHTC incentives.