This bill updates the Montana Achieving a Better Life Experience (ABLE) Act by aligning its definitions with the federal Internal Revenue Code and the state's individual income tax code. It directly affects individuals with disabilities and their families who use ABLE accounts to save for qualified disability expenses. The key provision revises Section 53-25-103 of the Montana Code Annotated to ensure terms like "eligible individual," "qualified disability expenses," and "annual contribution limit" match federal standards. The changes take effect immediately and apply retroactively to tax years beginning after December 31, 2024.
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.
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.
HB 129 provides an income tax benefit for volunteer firefighters and volunteer emergency care providers in Montana. The bill allows these "full-service volunteers" to subtract a specific amount from their taxable income. This deduction is designed to increase annually with an inflation factor. The legislation amends existing state tax code to implement these changes, with a delayed effective date.
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.
SB 93 revises state income tax laws concerning military pensions, retirement, and survivor benefits. The bill expands the eligibility for tax exemptions on these benefits to include certain individuals who became or remained residents of the state after a specific date. It also eliminates the previous 5-year limit for claiming the exemption and removes the statutory sunset, making the exemption permanent. This means more retired military members and their survivors in Montana will be able to exempt their military retirement income from state taxes indefinitely.
HB 831 increases Montana's elderly homeowner and renter income tax credit to help low-to-moderate-income seniors. It raises the maximum credit from $1,150 to $1,400 and increases the household income threshold for eligibility from $35,000 to $50,000 before the credit phases out. The bill also requires annual inflation adjustments to maintain the credit's value and applies retroactively to tax years beginning after December 31, 2024. This directly benefits Montanans aged 65+ who own or rent homes and meet the updated income limits.
This bill would have established an income tax credit for individuals and corporations in Montana who make cash contributions to qualified community improvement organizations. These organizations are defined as tax-exempt groups with no paid staff that raise or distribute funds to support public facilities owned by the state or local government. The credit amount would be equal to the contribution, capped at the lesser of 10% of taxable income or $3,000, and could be carried forward for three years. An aggregate statewide limit on the total amount of credits claimed annually would have been set, starting at $2 million in 2026 and potentially increasing in subsequent years, requiring preapproval from the Department.
This bill, LC 1727, creates a tax exclusion for a portion of income earned from selling newly constructed homes in Montana. It directly affects homeowners who sell newly built residences within the state. The key mechanism adds a new exclusion to Montana's tax code, meaning a specific part of the profit from these sales will not be counted as taxable income for state income tax purposes. This change modifies Montana's calculation of taxable income by removing this portion of sale proceeds from the tax base.
This bill creates a $1,000 refundable income tax credit for Montana volunteer firefighters and volunteer emergency medical technicians (EMTs). To qualify, individuals must be active, unpaid members of a certified fire company or emergency medical service for the entire calendar year and complete 30+ hours of required training. The credit reduces tax liability, with any excess refunded even if the taxpayer owes no income tax. The bill explicitly states its purpose is to retain and recruit volunteer emergency responders.
