Legislators look to tax credits to incentivize affordable housing builds
From left, Chad Oakland, Wade Jacklin and Josh Suhr lead a discussion about potential housing solutions during Tuesday's leg of the Idaho Legislative Tour.
HAILEY HILL/Press
POST FALLS — State legislators are looking to “reinvigorate the American dream” through proposed tax credit legislation that would incentivize builders to develop properties for middle-income Idahoans.
Under the proposal presented during Tuesday’s leg of the Idaho Legislative Tour, any taxpayer who builds and sells a deed-restricted lot and home dedicated to middle income-Idahoans, or donates land to a community land trust, would receive a tax credit.
The tax credit would be “equal to the difference between appraised market value and actual sales price,” according to the overview presented Tuesday.
The proposal comes as Idahoans are finding it increasingly difficult to buy a home, as housing costs continue to rise faster than wages. This is especially the case for middle-class, first-time homebuyers.
“Middle-class Idahoans are being harmed by the lack of affordable workforce housing,” said Maggie Lyons, the executive director of Panhandle Affordable Housing Alliance. “There’s a sharp contrast between the cost of homes and where wages are.”
In Kootenai County, there is a $132,237 affordability gap between the median family income and the average value of a home, according to data from September to October 2024.
“We refuse to accept that only the wealthy can afford a home,” Lyons said.
The proposed legislation has already received backing from state legislators, including Rep. Jordan Redman, a lifelong resident of North Idaho.
“Unaffordability here in Idaho is at an all-time high,” Redman said.
Though Redman said there is “no silver bullet or one easy fix,” he believes the tax credit is “an opportunity to help stimulate the private housing market.”
Local builders and developers also weighed in on what they believe to be the biggest factors contributing to the statewide housing crisis.
“We need more flexibility in zoning,” said Chad Oakland from Northwest Realty Group.
John Suhr from Windemere CDA Realty agreed that “red tape” drastically slows many necessary housing projects getting off the ground.
“Just because someone is objecting to it doesn’t mean a project is bad for the area,” Suhr said.
“I hope we’re not sitting here four years from now talking about the same things,” Oakland said. “I hope something gets done.”