Supporters of Proposed Workforce Housing Tax Credit Tell Legislative Panel It Would Increase Affordability

Proponents lined the walls of the House Taxation Committee room Friday in support of establishing a $1.5 million Montana workforce housing tax credit program.

House Bill 21 is a state-specific version of an existing federal program. The bill would give tax credits for affordable housing projects, which proponents said would help increase much-needed supply.

Don Sterhan is the president of CR Builders in Billings and a member of Gov. Greg Gianforte’s Housing Task Force. He supports HB 21 and gave examples of where the federal credit program has fallen short.

“Previously, we’ve relied Montana on federal programs,” Sterhan said. “This is one request – one opportunity for us as a state to do something on a program-level to contribute towards that, filling that gap.”

John Iverson with the Montana Society of Certified Public Accountants said his organization supports affordable housing but opposes further complicating Montana tax code.

“ Our recommendation is that if we’re going to allocate the $1.5 million that are shown on your fiscal note, just give them to the Board of Housing and allow them to directly hand out that money instead of handing it out through tax code,” Iverson said.

Iverson was the only opponent to the bill. Eighteen people testified for the bill, including housing developers, other members of the Housing Task Force, construction and union representatives and Missoula Mayor Andrea Davis. The committee did not immediately vote on the bill.

Clayton Murphy is a reporter with the UM Legislative News Service, a partnership of the University of Montana School of Journalism, the Montana Broadcasters Association, the Montana Newspaper Association and the Greater Montana Foundation. Murphy can be reached at clayton.murphy@umconnect.umt.edu.