Budget & Taxes (Business Taxes)

died · Montana · House May 20, 2025

HB 900: Provide income tax credit for payment processing fees directed to a charitable organization

This bill would allow businesses in Montana to receive a state income tax credit for payment processing fees they direct to charitable organizations, provided the payment processor reimburses the state for the credit amount in the first year it is claimed. The credit applies to both individual and corporate income taxes and can be carried forward for up to two years if it exceeds the taxpayer's tax liability for that year. The legislation defines payment processing fees as charges for electronic transactions like credit card or digital wallet payments and specifies that charitable organizations must meet federal charitable contribution standards. The bill also requires the credit to be attributed to shareholders or partners if claimed by certain business structures.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credit for businesses, promoting economic activity and fiscal responsibility through charitable payment processing fee incentives.85% confidence

Sub-Topics Business Taxes Income Tax

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died · Montana · House May 20, 2025

HB 904: Revise capital gains taxation

This bill proposes changes to Montana's capital gains tax structure, which would affect taxpayers earning income from investments such as stocks or real estate. Under the proposed changes, net long-term capital gains would be taxed at lower rates of 3.0% or 4.1% for income up to certain thresholds, while income exceeding $1 million for joint filers or $500,000 for other filers would be taxed at the standard rate of 5.9%. The bill also includes provisions to adjust tax brackets annually for inflation and defines specific income thresholds that determine how capital gains are taxed. The legislation would take effect on January 1, 2026, though it did not advance further in the legislative process before its deadline.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces capital gains tax rates for lower income brackets, providing tax relief and promoting fiscal responsibility for middle/lower income taxpayers.85% confidence

Sub-Topics Business Taxes

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died · Montana · House May 20, 2025

HB 903: Provide for class of property for manufacturing for property tax purposes

This bill creates a new property tax classification for manufacturing facilities in Montana, affecting land and improvements used to transform materials into new products or assemble components for non-construction purposes. The legislation establishes that manufacturing property will be taxed at 1.47% of its market value, with specific rules for determining classification when a parcel contains mixed uses. The changes apply to property tax years beginning on or after January 1, 2026, and would impact businesses operating manufacturing operations in the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates property tax classification for manufacturing facilities, potentially reducing tax burden on manufacturing sector and promoting economic development through targeted tax policy.75% confidence

Sub-Topics Business Taxes Property Tax

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signed · Montana · House May 19, 2025

HB 329: Make the Montana ammunition act permanent

HB 329 aims to encourage the formation of ammunition component manufacturing businesses in Montana. It establishes various state tax exemptions for qualified manufacturers, including property, individual income, corporate income, and other business-related taxes. To receive these exemptions, manufacturers must make their products available to in-state consumers at prices no higher than those for out-of-state purchasers. Additionally, the bill provides individual and corporate income tax exemptions to investors and lenders who provide loans to these eligible ammunition component manufacturers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions for corporate, property, and individual income taxes for ammunition manufacturers, constituting tax relief that aligns with support indicators for tax policy.95% confidence

Sub-Topics Business Taxes Income Tax

died · Montana · House May 20, 2025

HB 895: Provide exclusion from income for certain income from sale of a newly constructed residence

House Bill 895 (HB 895) proposed to allow individuals and businesses to subtract a portion of the income earned from the sale of a newly constructed residence when calculating their Montana state taxable income. This means that a part of the profit from selling these homes would be exempt from state income tax. The bill aimed to adjust Montana's tax code by creating this specific income exclusion. It would directly affect sellers of newly built homes by potentially reducing their state income tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax exclusion for new home sales, providing tax relief per tax code adjustment, aligning with support indicators for tax relief.95% confidence

Sub-Topics Business Taxes Income Tax

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vetoed · Montana · Senate Jun 12, 2025

SB 536: Revise contractor gross receipts tax

SB 536 revises Montana's contractor gross receipts tax by creating an exemption for certain individuals and businesses in good standing, requiring them to apply for the exemption. It specifically allows employee stock ownership plan (ESOP) companies to claim a credit against real property taxes, extending the timeframe to claim this credit from 5 to 7 years. The bill also clarifies that this credit can offset property taxes paid in Montana for business-related property. These changes apply to contractors with public contracts exceeding $80,000 and take effect January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax exemptions and extends property tax credit for ESOP companies, providing targeted tax relief to qualifying businesses under Revenue/Taxation subjects.92% confidence

Sub-Topics Business Taxes

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died · Montana · Senate May 23, 2025

SB 192: Provide for digital advertising tax

SB 192 would have imposed a 10% tax on digital advertising revenue generated within Montana by companies with worldwide annual digital advertising revenue exceeding $25 million. It directly affects large digital advertisers (like major tech or social media platforms) operating in Montana, taxing only the portion of their revenue derived from ads served to Montana users. The tax would be calculated using an apportionment method based on Montana ad revenue relative to total U.S. ad revenue, with returns due annually by April 15. All collected revenue would have been deposited into Montana's general fund, as specified in the bill's provisions. The bill died in committee in May 2025 and was not enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesImposes new tax on large digital advertisers to generate state revenue, directly advancing fiscal management and tax policy as per bill's purpose.95% confidence ✗ TechnologyOpposes TechnologyBill imposes 10% tax on digital ad revenue of large tech platforms, restricting their revenue streams as a regulatory measure.90% confidence

Sub-Topics Business Taxes Social Media

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signed · Montana · Senate May 13, 2025

SB 544: Revise income tax laws for net operating loss carryovers

SB 544 revises Montana's individual income tax laws to allow taxpayers an election to account for certain past net operating losses. It directly affects individuals who had differences between their federal and Montana net operating loss carryovers before January 1, 2024. These taxpayers can choose to make a "transition adjustment" on their 2024 income tax return, filed by October 15, 2025, to address these discrepancies. If elected, this adjustment can reduce Montana taxable income for 2024 and up to seven subsequent years until the loss is fully utilized. The bill aims to provide a mechanism for individuals to claim losses not fully recognized under previous 2021 tax simplification legislation.

Topics ✓ Budget & TaxesSupports Budget & TaxesAllows taxpayers to reduce 2024 taxable income via transition adjustment for federal-Montana loss carryover discrepancies, providing tax relief.95% confidence

Sub-Topics Business Taxes Income Tax

signed · Montana · House Apr 28, 2025

HB 337: Revise income tax laws to lower income taxes

HB 337 revises Montana's income tax laws, affecting individual taxpayers and certain estates or trusts. The bill aims to lower income taxes by adjusting the state's tax brackets. It increases the amount of Montana taxable income taxed at lower rates and reduces the highest income tax rate. Additionally, the bill revises the tax rates and income thresholds applied to net long-term capital gains.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill explicitly lowers income tax rates by adjusting brackets and reducing top rate, providing tax relief for individuals and estates per its summary.95% confidence

Sub-Topics Business Taxes Income Tax

died · Montana · Senate May 23, 2025

SB 322: Increase business equipment tax exemption

SB 322 increases Montana's tax exemption for business equipment by setting a $500 threshold, meaning equipment costing under $500 would be automatically exempt from taxation. It also requires annual inflation adjustments to the exemption amount and modifies tax code sections to clarify definitions and eligibility. Local governments and tax increment financing districts would receive reimbursements for lost property tax revenue due to these changes. The bill directly affects Montana businesses purchasing equipment under $500 and local governments managing property tax revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax exemption for small business equipment ($500 threshold), providing tax relief while requiring reimbursements to offset local revenue loss.90% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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