Tester Votes To Lower Housing Costs
As part of his continued efforts to lower costs for Montanans, U.S. Sen. Jon Tester, D-Mont., has 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 program to lower workforce housing costs across Montana, support Montana small businesses and American innovation with an improved research and development deduction, and expand the Child Tax Credit. The legislation failed to pass, 48-44, and 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.”
“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.
Provisions in the bill include: •Lowering Housing Costs:
•Increases the 9 percent LIHTC ceiling to 12.5 percent for years 2023, 2024 and 2025
•Reduces the bond financing requirement from 50 percent to 30 percent 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.
