Provide for tax-exempt child care savings accounts

This bill (LC 1234) creates tax-exempt child care savings accounts for Montana residents with dependent children. It allows account holders to contribute up to $5,000 annually (adjusted for inflation after 2026) tax-free, with earnings also exempt from state taxes, provided funds are used only for eligible child care expenses. Withdrawals for non-eligible expenses incur penalties, and account owners may transfer funds to immediate family members without tax consequences. The bill directly affects working parents, self-employed individuals, and caregivers in Montana who pay for child care, offering a state-level tax benefit aligned with federal guidelines.