Budget & Taxes (Tax Credits)

introduced · Montana · Legislature Mar 4, 2025

LC 2505: Increase elderly homeowner and renter income tax credit

This bill increases the maximum income tax credit available to elderly homeowners and renters in Montana by adjusting the credit calculation thresholds and amounts. It directly affects seniors who own or rent their primary residences by providing a tax credit that offsets a portion of their property taxes or rent-equivalent costs. The key mechanism involves raising the income threshold at which the credit begins to phase out and increasing the maximum credit amount, while also updating the definition of household income to $14,100 for calculation purposes. The bill includes an inflationary adjustment provision to ensure the credit maximum and phase-out income levels keep pace with economic changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax credits for elderly homeowners and renters, providing tax relief to lower-income seniors and reducing their financial burden.90% confidence ✓ HousingSupports HousingBill increases tax credits for elderly homeowners and renters, directly supporting affordable housing by reducing housing cost burdens for seniors.90% confidence

Sub-Topics Income Tax Tax Credits Affordable Housing Property Taxes Renters

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introduced · Montana · Legislature Jan 15, 2025

LC 2287: Provide tax credit for volunteer first responders

This bill creates a Montana income tax credit for individuals who volunteer as emergency first responders, such as volunteer firefighters, emergency medical service members, and air search and rescue volunteers. The credit allows eligible taxpayers to receive up to $1,500, calculated at $15 per hour of active volunteer service, and is refundable, meaning it can be received even if the taxpayer owes no state income tax. To claim the credit, volunteers must submit proof of their service hours to the state tax department. Additionally, the bill adds this tax credit to a list of credits that the revenue interim committee must review every eight years to assess their effectiveness and impact on taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credit to volunteer first responders, offering financial relief and encouraging community service while maintaining fiscal responsibility through refundable credits.85% confidence

Sub-Topics Income Tax Tax Credits

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died · Montana · House May 22, 2025

HB 220: Provide for a child tax credit

HB 220 would establish a refundable child tax credit for Montana resident taxpayers with children under age 5. It provides a $1,200 credit per qualifying child, phasing out for taxpayers with federal adjusted gross income over $56,000 (with a $50,000 phaseout threshold). The credit is refundable, meaning eligible families could receive it as a payment even if they owed no state income tax. The bill also adds the child tax credit to Montana’s required periodic review schedule for tax credits. The bill died in committee on May 22, 2025, and did not become law.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax relief ($1,200 per child under 5) for low/middle-income families, directly advancing tax policy to support families through fiscal means.95% confidence

Sub-Topics Income Tax Tax Credits

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died · Montana · Senate May 23, 2025

SB 321: Provide tax credits for children and child care

SB 321 proposes three tax credits to support Montana families and child-care providers. It would provide a $1,200 annual credit per child under age 5 for eligible residents (with income limits of $40,000 single/$80,000 married filing jointly), a $1,000 credit for child-care workers employed at least 6 months (20+ hours weekly), and a $2,500 employer credit for businesses offering dependent care assistance. All credits adjust annually for inflation and require filing a Montana tax return. The bill directly affects low-to-moderate-income families, child-care workers, and employers who provide on-site or subsidized care. (Note: The bill died in committee on May 23, 2025, and did not become law.)

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides targeted tax credits for low/middle-income families and child-care workers, reducing tax burden and supporting essential services per bill's income limits and credit amounts.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides $1,000 annual tax credit for child-care workers (20+ hrs/week), directly increasing income and supporting workforce retention in childcare sector.90% confidence

Sub-Topics Business Taxes Tax Credits

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introduced · Montana · Legislature Mar 21, 2025

LC 4176: Provide income tax credits for contributions to a community improvement organization

This bill creates an income tax credit for Montana taxpayers who donate cash to qualifying community improvement organizations. Taxpayers can claim a credit equal to 10% of their Montana taxable income or $3,000 (whichever is lower), with a total annual limit of $2 million in 2026 and $5 million in 2027 onward. The credit can be carried forward up to three years if not fully used in the donation year. To qualify, organizations must be 501(c)(3) nonprofits focused on public facilities (not including those with paid staff), and donations cannot overlap with existing charitable deduction benefits.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates income tax credit for donations, providing tax relief to taxpayers and incentivizing community investment, aligning with fiscal support indicators.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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introduced · Montana · Legislature Mar 24, 2025

LC 1889: Provide income tax credit for K-12 education expenses

This bill creates a Montana income tax credit for parents, guardians, or teachers paying K-12 education expenses. It allows a credit of up to $1,250 per year, covering costs like tuition, textbooks, online learning programs, tutoring, therapies, and school supplies. The credit can be claimed even without taxable income, with any excess refunded. It applies to expenses paid for children in public schools, accredited private schools, non-accredited tutors (with written disclosure), or compliant homeschools. The bill aims to help offset rising K-12 education costs for families and educators.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates refundable income tax credit for education expenses, providing direct tax relief to families without requiring taxable income, aligning with tax relief indicators.95% confidence ✓ EducationSupports EducationCreates tax credit for K-12 expenses, reducing financial barriers for families and educators, expanding access to educational resources like tuition and supplies.95% confidence

Sub-Topics Income Tax Tax Credits School Choice School Funding

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introduced · Montana · Legislature Mar 25, 2025

LC 7: Provide income based tax credit

This bill establishes a new income-based tax credit for Montana individual taxpayers with low-to-moderate income. It provides a credit equal to 4.7% of taxable income, but phases out completely when income exceeds specific thresholds ($2,000 for joint filers, $1,500 for heads of household, and $1,000 for other individual filers). The credit reduces tax liability but is unavailable for dependents, trusts, or taxpayers exceeding the phaseout income levels. The bill also requires the credit to be reviewed every eight years as part of Montana's broader tax credit review process.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credit reducing liability for low-to-moderate income earners, aligning with tax relief support indicator.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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introduced · Montana · Legislature Mar 26, 2025

LC 4355: Provide income tax credit for payment processing fees directed to a charitable organization

This Montana bill (LC 4355) creates an income tax credit for businesses that direct payment processing fees (like credit card processing costs) to charitable organizations. The credit equals the amount of those fees directed to charities and can be applied against either individual or corporate income tax. Any unused credit can be carried forward for up to two years. The bill defines "charitable organization" as one qualifying under federal tax law and clarifies that this credit does not replace existing charitable deduction options.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for businesses directing payment processing fees to charities, providing tax relief and encouraging charitable giving, supporting tax policy.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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introduced · Montana · Legislature Mar 27, 2025

LC 1364: Generally revise employee tax credit laws to include apprentices

This bill expands Montana's job growth tax credit to include construction industry apprentices as "qualifying new employees." It amends Section 39-11-404 to explicitly define apprentices as eligible for the credit, which previously required hiring full-time employees meeting specific wage and growth thresholds. Employers in the construction industry that hire apprentices will now qualify for the same annual tax credit as those hiring other new employees, subject to existing requirements (e.g., 10+ apprentices in the first year, 15+ annually after). The credit remains tied to net employee growth calculations and is administered by the Montana Department of Revenue. The policy change applies to credits claimed through 2028.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax credit for construction apprentices, providing tax relief to employers under revenue program, aligning with fiscal responsibility indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentExpands tax credit eligibility for construction apprentices, incentivizing employer hiring and workforce development under Labor & Employment policy.90% confidence

Sub-Topics Business Taxes Tax Credits Apprenticeships

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introduced · Montana · Legislature Mar 28, 2025

LC 2944: Generally revise education tax credit laws

This bill creates a $250 annual tax credit for Montana parents or legal guardians of children attending nonpublic schools. It directly affects families with children aged 5-19 enrolled in qualifying nonpublic schools (as defined in Montana law). The credit, which cannot exceed a taxpayer's income tax liability, may be carried forward up to three years if not fully used in the current tax year. The bill also adds this new credit to Montana's scheduled tax credit review process, requiring its evaluation every eight years starting in 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates $250 annual tax credit for nonpublic school parents, reducing taxable income and providing direct tax relief - advancing tax policy.90% confidence ✓ EducationSupports EducationCreates $250 annual tax credit for nonpublic school families, expanding educational access options for K-12 students through direct financial support.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits School Choice

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