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Senate committee endorses changes to infrastructure loan program, removes wage‑increase preference and tax-credit double-dip
Summary
The Montana Senate committee recommended concurrence on House Bill 16, which alters the infrastructure loan program and the infrastructure-use fee tax credit by removing eligibility tied to increasing wages of existing employees and eliminating use of the fee as both a tax credit and a deduction.
House Bill 16, carried in committee by Senator Hertz, was recommended for concurrence by the Senate after brief discussion and no recorded opposition on the floor vote (50–0 on second reading). The bill revises the state's infrastructure loan program and associated tax treatment.
Why it matters: HB 16 revises the criteria and benefits tied to the infrastructure loan program. Notably, it removes preference language that rewarded projects for increasing wages or incomes of existing employees and clarifies that infrastructure use fees cannot be claimed both as a tax credit and as a deduction.
Sponsor Senator Hertz told the committee the program dates back to the 1990s and has been amended several times; the changes aim to refocus incentives on attracting new businesses and new jobs rather than rewarding wage increases for existing employees. Hertz said the bill also removes redundant references to statutory code sections and addresses a fiscal concern by preventing a developer from "double dipping" through a credit and a deduction. Hertz cited the fiscal note estimating a potential $18,000 annual fiscal effect as a result of the change.
The committee recommendation: The committee recommended concurrence, and the clerk recorded a floor vote of 50 senators voting aye on second reading.
Context: Senators discussed the policy balance between encouraging new development and statewide efforts to reduce property tax burdens for constituents; one senator asked whether the measure might help attract developers and increase housing supply.
Ending: HB 16 advanced with unanimous recorded support on second reading (50–0) and will proceed according to the legislative process for concurrence and further readings.
