Tester Votes to Lower Housing Costs for Montana Families by Creating More Affordable Options with Housing Tax Credit

Tester-backed bill would also support Montana small businesses with an R&D deduction, and expand the Child Tax Credit

As part of his continued efforts to lower costs for Montanans, U.S. Senator Jon Tester today voted for bipartisan legislation that would put more money in the pockets of families and small businesses through housing, research, and child tax credits. 

The Tester-backed Tax Relief for American Families and Workers Act would bolster the Low Income Housing Tax Credit (LIHTC) program to lower workforce housing costs across Montana, support Montana small businesses and American innovation with an improved research and development (R&D) deduction, and expand the Child Tax Credit. The legislation failed to pass, 48-44, and Senator Tester was the lone Senator from Montana to vote for this bipartisan proposal.

“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,” said Tester. “That’s why I’m proud to have voted for bipartisan tax credits that would lower the cost of workforce housing and support Montana families and small businesses, who are constantly innovating to stay ahead of foreign competitors like China. Montanans have told me they want commonsense solutions to help lower costs and support Main Street, and I’ll continue to work with Republicans and Democrats to get the job done.”

“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. The Low-Income Housing Tax Credit is the main and most successful source of funding for workforce housing creation in Montana,” said Karissa Trujillo, Executive Director of Homeword. “The housing provisions in the Tax Relief for American Families and Workers Act are an important resource to bolster Montana’s supply of housing, ensuring Montanans can continue to call Montana home. We extend our appreciation for Senator Tester’s support of this bill.”

“Agriculture is Montana’s number one industry and it’s the backbone of our economy – which is why it’s vital that our family farmers and ranchers have the tools they need to invest in their operations and keep our economy competitive, especially as many family farms are operating on shoestring margins and high interest rates,” said Cyndi Johnson, President of Montana Farm Bureau Federation. “The Tax Relief for American Families and Workers Act will continue several critical tax provisions for Montana’s farmers and ranchers, and I thank Senator Tester for representing family farm agriculture in the Senate.”

“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 – and that starts with investing in research and development right here at home,” said Chris Anderson, President and CEO of DJ&A Engineering, headquartered in Missoula. “I’m proud to see Senator Tester support this measure to fix the R&D tax credit, and I appreciate the Senator’s leadership as he works to strengthen Montana’s businesses.”

Tester-backed provisions in the bill include:

• Lowering Housing Costs:
  • Increases the 9% LIHTC ceiling to 12.5% for years 2023, 2024, and 2025
  • Reduces the bond financing requirement from 50% to 30% for projects with bond financing before 2026
• Supporting Montana Small Businesses:
  • Fixes the R&D deduction by delaying the requirement to deduct research and experimental expenditures over five or 15-year periods and restoring full and immediate expensing for investments in machines, equipment, and vehicles
• Expanding the Child Tax Credit:
  • Increases the amount from $1,600 to $1,800 for 2023, $1,900 for 2024, and $2,000 for 2025, and indexes those amounts to inflation beginning in 2024

Tester has led the charge to lower costs for Montana families and seniors. Tester supported the Inflation Reduction Act, which requires Medicare to negotiate drug prices, caps out-of-pocket prescription drug costs for Medicare patients at $2,000/year, caps the cost of insulin for Medicare patients at $35/ month, and extends Affordable Care Act provisions to prevent price hikes for thousands of Montanans. The legislation was signed into law in August 2022 and is fully paid for by holding corporations and billionaires accountable.

Tester has also worked to tackle the rising cost of housing across Montana. In July, Tester secured $10.2 million in Rebuilding American Infrastructure with Sustainability and Equity (RAISE) Grant funding to improve housing and critical infrastructure in East Helena. Earlier this year, Tester secured more than $16 million for housing programs across the state to increase the supply of housing for Montanans. In November, Tester introduced his Preservation and Reinvestment Initiative for Community Enhancement (PRICE) Act – legislation that would revitalize Montana’s affordable housing supply by establishing a manufactured housing community improvement grant program. In September, Tester also introduced his bipartisan Rural Housing Service Reform Act of 2023 – legislation which would improve federal rural housing programs, cut government red tape, and strengthen the supply of affordable housing across Montana.