Low Income Housing Tax Credit
Program Provider: U.S. Department of Housing and Urban Development
Street Address: Paul G. Hatfield U.S. Courthouse 901 Front Street – Suite 1300 Helena, MT 59626
Phone Number: (406) 449-5050
Fax Number: (406) 449-5052
Information: The low income housing tax credit is available under Section 42 of the Internal Revenue Code of 1986. The credit is a federal income tax credit for owners of qualifying rental housing which meets certain low income occupancy and rent limitation requirements. The credit is taken as a reduction in participants tax liability over a 10 year period. The credit can also be sold to investors to act as a financing source. Except for certain buildings substantially financed with tax-exempt bonds, an owner must first obtain a credit allocation from the appropriate state agency before claiming the tax credit. The amount of tax credit which may be allocated annually for housing within each state is limited to $2.15 per state resident. The Montana Board of Housing (MBOH) is the state agency which allocates the tax credit for housing located in Montana. The Board will provide fixed rate mortgages for low income rental housing which meet underwriting eligibility and receive approval of HUD mortgage insurance.