Budget & Taxes (Tax Credits)

introduced · Montana · Legislature Mar 30, 2025

LC 3865: Establish a child income tax credit

Montana's LC 3865 establishes a refundable child tax credit of $1,000 per qualifying child under age 5 for eligible residents. To claim it, taxpayers must have earned income, a valid Social Security number for each child, and meet income limits ($35,000 single/head of household, $65,000 married filing jointly). The credit is refundable - meaning families can receive cash even if they owe no state tax - and adjusts annually for inflation based on the Consumer Price Index. This policy directly affects Montana parents with young children who meet income and documentation requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesRefundable child tax credit provides direct tax relief to low-income families, aligning with support indicators for middle/lower income tax relief.90% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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died · Montana · House May 20, 2025

HB 537: Provide for a birth day tax credit for the birth of a child

HB 537 proposed creating a new "birth day" tax credit for resident taxpayers in Montana upon the birth of a child. The credit would be up to $3,000, or the total of the taxpayer's Montana income taxes, federal income taxes, and FICA contributions, whichever is less. This credit would be refundable, allowing taxpayers to receive a refund even if they have no state tax liability. The credit amount would be reduced for higher-income taxpayers and capped at $1,500 in certain situations, such as for parents filing separately or unmarried parents sharing custody. If passed, it would have applied to income tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit reducing tax burden for new parents, aligning with tax relief for middle/lower income families through direct financial support.95% confidence

Sub-Topics Income Tax Tax Credits

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died · Montana · Senate May 23, 2025

SB 225: Provide income tax credit for renters

SB 225 would create a refundable income tax credit for Montana renters with household income under $45,000. The credit equals the lesser of 4% of rent paid above household income or $500, phasing out completely for incomes of $45,000 or more. It directly affects low-to-moderate-income renters who pay rent in Montana, providing a refund even if they owe no income tax. The bill also amends tax code sections to include this credit in regular review cycles and prohibits claiming it alongside the existing elderly property tax credit.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable tax credit for low-income renters ($45k income cap), directly reducing tax burden and increasing disposable income for housing costs.95% confidence ✓ HousingSupports HousingProvides refundable tax credit to low-income renters ($45k income cap), directly increasing housing affordability and reducing rent burden for vulnerable tenants.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits Property Taxes Renters Tenant Rights

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died · Montana · Legislature May 27, 2025

LC 1990: Provide for a childcare tax credit

This bill (LC 1990) proposed creating a state tax credit to help families cover childcare costs. It would have directly affected households with children using licensed childcare services. However, the bill was drafted in late 2024, placed on hold, and ultimately died in the legislative process on May 27, 2025, without becoming law. No policy changes were enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates a childcare tax credit, providing tax relief for families. This aligns with support indicators: tax relief for middle/lower income.95% confidence

Sub-Topics Business Taxes Tax Credits

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died · Montana · Legislature May 27, 2025

LC 3134: Establish agriculture tax credit

This bill (LC 3134) proposed creating a tax credit for agricultural businesses in the state. It would have directly affected farmers and agricultural operations by potentially reducing their state tax liability. The key provision would have been establishing a specific credit amount or percentage for qualifying agricultural income or expenses. However, the bill never advanced beyond the drafting stage, as its draft was placed on hold in February 2025 and ultimately died in process on May 27, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credit for agricultural businesses, reducing tax liability, aligning with tax relief indicators for support.90% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Tags Agriculture

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died · Montana · House May 20, 2025

HB 942: Establish a child income tax credit

HB 942 proposes to establish a new child income tax credit for resident taxpayers. This bill would provide a refundable credit of $1,000 for each qualifying child aged 5 or younger. To claim the credit, taxpayers must have proof of earned income and a valid social security number for each child. The credit amount would be reduced for taxpayers with federal adjusted gross income exceeding $35,000 for single filers or $65,000 for married couples filing jointly. Both the credit amount and the income thresholds would be adjusted annually for inflation, applying to income tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides refundable $1,000 credit per child under 5 for qualifying lower-income families, reducing tax burden for households with earned income below $35k/$65k thresholds.95% confidence

Sub-Topics Business Taxes Income Tax Tax Credits

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died · Montana · House May 20, 2025

HB 209: Prove income tax credit for nonpublic school expenses such as private or homeschool tuition

HB 209 proposed creating a state income tax credit for taxpayers covering nonpublic school education expenses. This credit would apply to qualifying students attending private schools or being homeschooled. Eligible expenses include tuition, textbooks, extracurricular activities, and other specific educational costs like therapies or vocational programs. The credit amount would be limited to the lesser of the expenses paid or 44.7% of a set state rate, and it could not exceed the taxpayer's overall tax liability.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax credit reducing state revenue, weakening fiscal management by limiting tax income without direct public service funding.90% confidence ✓ EducationSupports EducationBill creates tax credit for nonpublic school expenses, expanding educational access options through financial support for private/homeschooling.90% confidence

Sub-Topics Income Tax Tax Credits School Choice

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died · Montana · House May 20, 2025

HB 922: Generally revise education tax credit laws

HB 922 proposes to establish a new education tax credit for resident taxpayers who are parents or legal guardians of children attending nonpublic schools. This bill would allow a $250 credit per eligible student each year, applied against the taxpayer's income tax liability. Any unused credit could be carried forward for up to three years. The legislation also revises the review schedule for existing tax credits and aims to provide parity in aggregate limits for educational programs in public and nonpublic school settings.

Topics ✓ Budget & TaxesSupports Budget & TaxesEstablishes tax credit reducing income tax liability for education expenses, providing tax relief per bill's tax credit provisions.85% confidence ✓ EducationSupports EducationCreates $250 tax credit per nonpublic school student, expanding educational access and financial support for families using private schools.90% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives School Choice

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died · Montana · Senate May 23, 2025

SB 267: Provide a tax credit for charitable gifts to public infrastructure

SB 267 (Montana Senate Bill 267) creates a 50% tax credit for Montana taxpayers who make charitable donations to certified public infrastructure projects, capped at $500,000 annually. The credit applies to donations for government-owned facilities like health clinics, senior centers, libraries, and museums that serve public educational, health, or civic needs. Taxpayers must receive certification from the state for the project, and any unused credit can be carried forward for up to three years. The bill died in the legislative process on May 23, 2025, after being tabled in committee and missing a deadline.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates 50% tax credit for public infrastructure donations, reducing taxable income and funding essential services like health clinics and libraries.95% confidence

Sub-Topics Tax Credits

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died · Montana · Senate May 23, 2025

SB 546: Provide income based tax credit

SB 546 would have created an income-based tax credit for Montana taxpayers with low-to-moderate income, reducing their state tax liability. The credit would have been calculated as 4.7% of taxable income up to specific thresholds ($2,000 for joint filers, $1,500 for heads of household, and $1,000 for other filers), phasing out by 0.094% for each additional $1,000-$2,000 of income depending on filing status. It would not have applied to income above phaseout limits, and the credit could not exceed the taxpayer’s total tax liability. The bill died in committee on May 23, 2025, and was never enacted.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief for low-to-moderate income taxpayers via 4.7% income-based credit, reducing state tax liability per bill summary.95% confidence

Sub-Topics Business Taxes Tax Credits

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