HB 505 modifies the Montana Housing Infrastructure Revolving Loan Fund Account. The bill allows this fund to retain all interest and income it earns, rather than those funds being transferred elsewhere. It also directs the state treasurer to transfer $50 million from the general fund into this account by June 2025 and another $50 million by June 2026. These provisions aim to increase the resources available within the revolving loan fund, which supports housing infrastructure projects. The principal of the fund can only be appropriated by a two-thirds vote of each legislative house.
HB 876, the Sawmill Revitalization Act, creates a special state revenue account to support the reopening of closed sawmills. It transfers $6 million from the big sky economic development fund into this account. The Board of Investments will administer these funds, offering loans at an interest rate not exceeding 3% to parties with the capacity to return closed sawmills to commercial operation. Priority for these loans is given to sawmills that closed most recently. This act is effective July 1, 2025, and terminates on December 30, 2026.
HB 845 increases the state income tax deduction for individuals contributing to Family Education Savings Accounts (529 plans). Beginning in tax year 2025, the maximum annual deduction for these contributions will rise from $3,000 to $4,500. The bill also establishes an inflation factor to adjust this maximum deduction amount in subsequent tax years based on the consumer price index. These changes apply retroactively to tax years beginning after December 31, 2024, for contributions made to accounts owned by the contributor, their spouse, or a Montana resident child or stepchild.
HB 9 appropriates funds for cultural and aesthetic projects across Montana for the biennium ending June 30, 2027. It allocates $30,000 from the cultural and aesthetic projects trust fund to the Montana Historical Society for capitol complex artwork care. Additionally, it appropriates $953,500 from the same fund to the Montana Arts Council, which will award grants to numerous listed cultural and artistic organizations. Grant recipients are required to acknowledge that the funding originates from coal tax placed into Montana's Cultural and Aesthetic Projects Trust Fund. Any unspent grant money will revert to the trust fund after June 30, 2027.
This bill expands Montana's job growth incentive tax credit program to include apprentices working in the construction industry. It amends state tax laws to officially classify construction apprentices as "qualifying new employees" for the purpose of calculating tax credits when employers hire them. Companies hiring apprentices in construction can now receive the same annual tax credit benefits as those hiring other new employees, provided the apprentices meet specific wage and employment duration requirements. The legislation also updates administrative procedures for how the Department of Labor and Industry processes credit applications and audits employer claims. These changes are set to remain in effect through December 31, 2028.
HB 11 appropriates money from the Montana coal endowment special revenue account to the Department of Commerce for the biennium beginning July 1, 2025. This bill authorizes over $20 million in grants for specific water and wastewater infrastructure projects in various towns, cities, and water/sewer districts across Montana. Additionally, it allocates over $3.5 million for bridge projects in several counties. The grants are conditional upon recipients meeting specified requirements and the availability of funds, with deadlines for project completion to maintain eligibility.
HB 833 provides funding to increase Montana's correctional capacity, directly affecting the state's prison system and the Department of Corrections. The bill establishes a "Future of Corrections Fund" and appropriates a total of $250 million from the general fund. Of this, $30 million is for system assessment, planning, and technology. The remaining $220 million is allocated either for constructing a new state correctional facility or, contingently, for securing additional capacity through other agreements, which may include private correctional facilities, if the budget director determines state construction is not in the state's best interest.
SB 560 requires nonprofit hospitals to report their annual charity care and community benefit spending to the state. The bill mandates that a nonprofit hospital's total community benefit must exceed the amount of property taxes it would have paid if it were not tax-exempt. If a hospital's reported community benefit does not meet this threshold, a fee equal to the difference will be assessed. These collected fees are then deposited into a new Critical Access Health Care Special Revenue Account, which provides funding to critical access hospitals not affiliated with other hospitals.
HB 231 revises property tax laws by establishing reduced tax rates for certain class four residential and commercial properties. It provides a lower tax rate for qualifying owner-occupied principal residences and long-term rental properties, as well as for a portion of commercial property value. For principal residences, some owners will automatically qualify for the reduced rate for tax years 2025 and 2026 based on prior tax rebates or assistance programs. Beginning in tax year 2027, all owners seeking these reduced rates must apply to the department and meet specific eligibility criteria, such as demonstrating occupancy for a principal residence or rental periods for long-term rentals.
SB 542 generally revises property tax laws, affecting various property owners. The bill freezes property values for tax years 2025 and 2026 at their 2024 levels, unless a decrease is determined by the Department of Revenue. It provides a property tax rebate of up to $400 for principal residences based on 2024 property taxes paid, which taxpayers must claim between August 15 and October 1, 2025. Additionally, the legislation reduces tax rates for Class Three agricultural property and revises rates for Class Four residential and commercial properties, including lower rates for owner-occupied homes, long-term rentals, and a portion of commercial property value.
