H0760 Low-income Property Tax Exemption

SUPPORT - This bill revises Idaho’s property tax exemption for nonprofit low-income housing by establishing clearer eligibility standards and deeper affordability requirements. It prioritizes units for households earning 30–60% of area median income, expands allowable ownership structures, and adds ongoing compliance reporting. However, counties retain discretion to deny exemptions, and many projects - particularly those using federal tax credits or existing developments - are excluded.

We support this legislation because it encourages the development of deeply affordable housing and can reduce operating costs for nonprofits through property tax relief. That said, limiting access to federal tax credits—a key financing tool—and allowing counties to deny exemptions introduces uncertainty that may reduce its overall effectiveness in expanding housing supply.

This legislation passed the House but failed in the Senate after 2 rounds of voting.

See full bill here.