Budget & Taxes (Business Taxes)

introduced · Montana · Legislature Dec 23, 2024

LC 2572: Exempt a portion of interest earnings from individual income tax

This bill modifies Montana's individual income tax calculation by exempting certain interest earnings from state taxation while requiring that such interest income still be reported on federal tax forms. The key provision creates a deduction for interest from U.S. government obligations and exempt-interest dividends, but limits the deduction amount based on the taxpayer's filing status. Additionally, the bill adjusts how various other income items are treated when calculating Montana taxable income, including provisions for pass-through entities, state tax deductions, and specific savings account withdrawals. The legislation applies to individual taxpayers filing Montana state income tax returns and includes a delayed effective date for implementation.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief by exempting certain interest earnings from state taxation, reducing individual tax burden and promoting fiscal responsibility.85% confidence

Sub-Topics Business Taxes Income Tax

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introduced · Montana · Legislature Feb 22, 2025

LC 730: Revise commercial property assessed capital enhancement program laws

This bill amends Montana laws to allow local governments to create programs that help commercial property owners finance improvements for energy efficiency and public safety. Under the new provisions, local governments can enter into contracts with property owners to pay for projects like better insulation, renewable energy systems, or structural upgrades that improve a building's ability to withstand disasters or power outages. The costs for these projects would be repaid through special assessments on the property rather than through traditional loans or grants. The bill defines eligible projects to include energy-saving measures, stormwater control, and specific firearm storage infrastructure, while clarifying that the financing must come from a third party.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enables local governments to fund energy efficiency and safety improvements through special assessments, promoting economic development and fiscal management.75% confidence ✓ EnergySupports EnergyBill enables local programs to finance energy efficiency improvements and renewable energy systems for commercial properties, directly advancing energy infrastructure and efficiency goals.85% confidence

Sub-Topics Business Taxes Tax Incentives Energy Efficiency Renewable Energy

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introduced · Montana · Legislature Dec 9, 2024

LC 627: Redistribute certain state tax revenue to primary residence property tax relief

This bill creates a state-funded property tax credit program for homeowners who designate their homes as primary residences. It redirects existing state lodging and rental car tax revenues into a special account, which is then distributed to counties to provide credits directly on property tax bills for certified primary residences. Homeowners must apply for certification by March 1 each year, and the Department of Revenue will verify eligibility while counties administer the credit payments. The program allows recipients to keep any excess credit if it exceeds their property tax bill, and it includes provisions for appeals and penalties for fraudulent applications.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax relief for homeowners through state-funded credits, directly supporting tax relief and fiscal management goals.90% confidence ✓ HousingSupports HousingBill creates state-funded property tax credit program for homeowners, providing financial relief and supporting housing affordability85% confidence

Sub-Topics Business Taxes Property Tax Sales Tax Historic Preservation Housing Finance Property Taxes

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introduced · Montana · Legislature Jan 28, 2025

LC 4306: Make the Montana ammunition act permanent

This bill makes permanent a tax incentive program designed to encourage companies in Montana to manufacture ammunition components by offering significant tax breaks. The legislation exempts qualifying ammunition manufacturers from state property taxes, business equipment taxes, individual income taxes, and corporate income taxes, provided they sell products to both in-state and out-of-state consumers at equal prices and do not commit all production to out-of-state buyers. Additionally, lenders and investors who provide loans to these manufacturers receive exemptions from individual and corporate income taxes on income derived from those loans. The bill also extends property tax exemptions to real estate within 500 yards of manufacturing facilities and storage structures, while excluding local property taxes and payroll taxes from the exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides significant tax breaks to ammunition manufacturers, reducing state revenue collection but promoting economic activity and job creation through tax incentives.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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introduced · Montana · Legislature Jan 27, 2025

LC 1716: Revise income tax laws to lower income taxes

This bill revises Montana's income tax structure by raising the income thresholds at which higher tax rates apply and lowering the top tax rate. It directly affects all Montana taxpayers by increasing the amount of income taxed at the lower 4.7% rate and reducing the highest tax rate from 5.9% to 5.4% or 5.65% depending on filing status. The legislation also adjusts tax brackets for net long-term capital gains and includes provisions to automatically update tax brackets for inflation each year. These changes would apply to individual filers, heads of households, married individuals, estates, and trusts subject to Montana income tax.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill lowers income taxes and raises thresholds, providing tax relief to taxpayers and reducing tax burden on individuals.95% confidence

Sub-Topics Business Taxes Income Tax

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introduced · Montana · Legislature Jan 14, 2025

LC 3292: Revise residential and commercial property tax rate

This bill amends Montana's property tax code to adjust the tax rate for Class Four residential and commercial properties. It directly affects homeowners, businesses, and property owners whose real estate falls under this classification. The key change is a revision of the tax rate from 1.35% to 0.76% on market value for most residential properties, with higher rates applied to properties exceeding $1.5 million in value. Commercial property will be taxed at a rate of 1.35% of market value, while golf courses remain taxed at half the commercial rate. The legislation applies immediately upon passage and includes retroactive application to tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill reduces property tax rates for most residential properties from 1.35% to 0.76%, providing tax relief and aligning with fiscal responsibility goals.85% confidence

Sub-Topics Business Taxes Property Tax

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introduced · Montana · Legislature Feb 5, 2025

LC 3009: Revise taxes for class 17 data center property

This bill amends Montana's property tax classification system to update how data centers are categorized and taxed. It extends the construction timeline for data center property from 15 years to 25 years and revises ownership requirements for qualifying facilities. The legislation also clarifies definitions for electrical generation facilities and telecommunications infrastructure, ensuring these assets are properly classified under existing tax rules. Additionally, it maintains the current 5-year tax exemption for fiber optic and coaxial cable while requiring reinvestment of tax savings into new infrastructure to preserve the benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill updates tax classifications for data centers, likely generating revenue for state budget while clarifying tax rules for infrastructure development.75% confidence ✓ TechnologySupports TechnologyBill updates tax classification for data centers and extends construction timelines, supporting technology infrastructure development and digital infrastructure growth.75% confidence

Sub-Topics Business Taxes Tax Incentives Broadband Access Telecommunications

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introduced · Montana · Legislature Feb 12, 2025

LC 447: Revise individual income tax rates and earned income credit

This bill revises Montana's individual income tax structure by lowering the top marginal tax rate from 5.9% to 4.9% for all filing categories, including married couples, heads of household, and single filers. It also reduces the tax rate on net long-term capital gains from 4.1% to 3.9% across all income brackets and filing statuses. The changes directly affect Montana taxpayers who file state income tax returns, with the new rates applying to taxable income exceeding specific thresholds that vary by filing status.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill lowers individual income tax rates and capital gains taxes, providing tax relief to Montana taxpayers and reducing overall tax burden.90% confidence

Sub-Topics Business Taxes Income Tax

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introduced · Montana · Legislature Jan 15, 2025

LC 4308: Revise income tax brackets to lower income taxes

This Montana bill revises state income tax brackets to lower taxes by increasing the income thresholds at which higher tax rates apply. It directly affects all Montana taxpayers, including married couples, single filers, heads of households, and estates or trusts. The key change expands the income range taxed at the lower 4.7% rate while raising the threshold for the 5.9% rate, with similar adjustments made for net long-term capital gains. The bill also updates the inflation adjustment mechanism and applies changes retroactively to tax years beginning after December 31, 2024.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill lowers income taxes by increasing thresholds for higher tax rates, providing tax relief to Montana taxpayers across income levels.95% confidence

Sub-Topics Business Taxes Income Tax

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introduced · Montana · Legislature Feb 12, 2025

LC 1012: Generally revise laws related to MEDIA Act film tax credits

This bill revises Montana's film tax credit program to expand incentives for media production companies operating in the state. It increases the total credit limit available, extends the program through 2045, and creates a new fee specifically for workforce training in the film industry. The legislation also introduces higher credits for hiring veterans and tribal members, establishes rules reserving credits for Montana-based businesses, and clarifies definitions around compensation and eligible production activities.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill expands film tax credits and creates workforce training fees, strengthening state film industry incentives and revenue generation through targeted tax policy.85% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill creates workforce training fee, establishes incentives for hiring veterans and tribal members, and clarifies compensation definitions, strengthening labor development in film industry.75% confidence ✓ VeteransSupports VeteransBill introduces higher tax credits for hiring veterans, directly supporting veteran employment and economic opportunities.85% confidence

Sub-Topics Business Taxes Workforce Development

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