Missoula Current: Missoula housing advocates lament Senate’s failure to pass tax bill

A bill aimed at boosting workforce housing development and expanding the Child Tax Credit failed to pass the senate this week, though Sen. Jon Tester was among a bipartisan group to vote for the measure.

The Tax Relief for American Families and Workers Act sought to boost the Low-Income Housing Tax Credit program to make it easier to fund and build workforce housing. Among other things, that portion of the bill would have raised the tax credit ceiling from 9% to 12.5% while also reducing bond financing from 50% to 30%.

“At a time when Montanans are struggling with rising costs on everything from housing to groceries, we should be focused on putting more money back in the pockets of hardworking families and small businesses – especially as our state faces skyrocketing housing prices that are forcing Montanans out of their communities,” Tester said in a statement.

Aside from skyrocketing property taxes, affordable housing has emerged as one of the top issues facing Montana and most of its larger cities. It also threatens the state’s economy, as many businesses face challenges in recruiting and keeping workers due to housing costs.

Several recent income restricted housing projects in Missoula have relied upon the Low-Income Housing Tax Credit to make them pencil while also keeping them affordable. But the developers behind those projects have said the tax credit is hard to get and can’t always be relied upon.

Karissa Trujillo, the executive director of Homeword in Missoula, said the bill’s housing provisions would have been an important resource to bolster affordable housing.

“Our state’s supply of affordable housing is a critical tool to ensure all Montanans have the opportunity to live in a home where they can thrive,” said Trujillo. “The Low-Income Housing Tax Credit is the main and most successful source of funding for workforce housing creation in Montana.”

The Tax Relief for American Families and Workers Act also sought to increase the Child Tax Credit from $1,600 to $2,000 over several years.

The measure also looked to support small businesses and innovation with a reduction for research and development.

“Small businesses are the cornerstone of Montana’s economy, and if we are going to keep our state competitive in the 21st century, we’ve got to make sure those businesses can invest in new and innovative tools to be successful,” said Chris Anderson, president and CEO of DJ&A Engineering, based in Missoula. “That starts with investing in research and development right here at home.”

The bill failed to pass the Senate on a 48-44 vote. Sen. Steve Daines voted against the measure. Most Senate Republicans opposed the bill due to changes it would make to work requirements around the Child Tax Credit.