House Taxation Committee hears bill to create state workforce housing tax credit

The House Taxation Committee heard testimony on House Bill 21, a proposal to establish a state workforce housing tax credit designed to fill financing gaps on affordable rental projects.

Sponsor Representative Larry Brewster, representative for House District 43 in Billings, said the bill is modeled on the federal low-income housing tax credit and would operate with a defined start and end and periodic review, likely by the Revenue Interim Committee. "It basically allocates money over time so that people can gain a tax credit to supplement their projects for low income housing," Brewster said.

Proponents described how state credits would pair with existing federal credits and private investment to create viable capital stacks for affordable housing. Don Sterhan, president of CR Builders LLC, described the mechanics: developers awarded federal credits sell those credits to investors to raise equity, then use that equity with loans and other funds to complete projects.…