Budget & Taxes (Income Tax)

died · Montana · Legislature May 22, 2025

LC 2310: Eliminate Montana state income tax on social security retirement benefits

LC 2310 was a legislative bill designed to eliminate the Montana state income tax on Social Security retirement benefits. If enacted, this bill would have directly affected Montana residents receiving Social Security retirement benefits by removing their state income tax liability on those specific funds. The primary mechanism of the bill was to amend state tax law to exclude Social Security retirement income from taxable income at the state level.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates state tax on Social Security benefits, providing direct tax relief to retirees (middle/lower-income group) as per tax relief indicators.95% confidence

Sub-Topics Business Taxes Income Tax

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died · Montana · Senate May 23, 2025

SB 531: Provide tax credit for purchase of a firearm safe

SB 531 would provide Montana residents a refundable state income tax credit for purchasing a firearm safe, up to $300 per tax year. To qualify, the safe must meet strict security standards (e.g., 10,000+ lock combinations, 1/2-inch steel bolts, certified by a nationally recognized lab) and fully contain firearms. The credit directly affects individual taxpayers who buy qualifying safes, with unused credit paid back if their tax liability is less than the claimed amount. The bill aims to encourage safe storage but does not change existing firearm laws. It would apply to tax years beginning January 1, 2026, though it died in committee in 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides refundable tax credit reducing individual tax liability, directly constituting tax relief per topic indicators.95% confidence

Sub-Topics Income Tax Procurement

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died · Montana · Legislature May 27, 2025

LC 1918: Eliminate marriage penalty in tax filing

This bill aimed to eliminate the "marriage penalty" in tax filing, which occurs when married couples filing jointly pay more in taxes than if they filed as single individuals. It would have directly affected married couples filing jointly by adjusting tax brackets or deductions to align their tax burden with single filers. The bill was drafted but died in the legislative process without advancing to a vote. It did not become law, as noted in its recent actions.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates marriage penalty tax burden for couples, providing direct tax relief aligning with support indicators for middle-income taxpayers.95% confidence

Sub-Topics Income Tax

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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 · House May 20, 2025

HB 132: Exempt a portion of interest earnings from individual income tax

House Bill 132 aimed to revise individual income taxation by allowing taxpayers to deduct a portion of their interest earnings from their Montana taxable income. This proposed deduction would apply to interest income reported on a Form 1099. The bill specified that the amount of the deduction would be limited based on the individual's tax filing status. Essentially, it sought to reduce the state income tax burden for individuals receiving certain interest income.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill creates tax deduction for interest income, reducing state tax revenue and weakening the tax base, directly opposing fiscal strengthening.95% confidence

Sub-Topics Income Tax

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died · Montana · House May 20, 2025

HB 440: Providing tax incentives to put Montana-produced food first

HB 440 aimed to provide tax incentives for the sale of food produced in Montana. The bill proposed allowing both individuals and corporations to subtract income earned from selling Montana-produced food when calculating their state income taxes. This mechanism was intended to reduce the tax burden on those involved in the sale of local food products. The bill sought to amend current statutes governing individual and corporate income tax adjustments.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax deduction for Montana food sales, reducing taxable income and lowering tax burden on agricultural producers per bill's tax incentive mechanism.90% confidence

Sub-Topics Business Taxes Income Tax Tax Incentives

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died · Montana · Senate May 23, 2025

SB 323: Revise individual income tax rates and earned income credit

SB 323 would reduce Montana's top individual income tax rate from 5.9% to 4.9% for most taxpayers, including married couples filing jointly, heads of household, and single filers. It also increases the state's Earned Income Tax Credit, providing greater tax relief for low-to-moderate income workers. The bill amends Montana's tax code (sections 15-30-2103 and 15-30-2318) to adjust tax brackets and credit amounts, with changes applying to income above specific thresholds ($41,000 for joint filers, $30,750 for heads of household, and $20,500 for others). The bill was tabled in committee and died in process without becoming law.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces top tax rate and increases EITC for low-to-moderate income workers, providing targeted tax relief per bill summary.95% confidence

Sub-Topics Business Taxes Income Tax

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died · Montana · House May 20, 2025

HB 652: Eliminate state taxes on veterans retirement

HB 652 aimed to revise state income taxation by providing a full income tax exemption for military pensions, retirement, and survivor benefits. This bill would have directly affected veterans, military retirees, and their survivors by eliminating state income taxes on these specific forms of income. The proposed changes included amending sections of the Montana Code Annotated related to income definitions and tax provisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates state income tax on veterans' retirement income, providing direct tax relief to military retirees and survivors per bill's explicit tax exemption provision.95% confidence ✓ VeteransSupports VeteransEliminates state income tax on veterans' retirement benefits, directly expanding financial benefits for veterans and survivors.95% confidence

Sub-Topics Income Tax Tax Incentives Veteran Benefits

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died · Montana · Senate May 23, 2025

SB 549: Provide income tax credit for K-12 education expenses

SB 549 would have provided Montana taxpayers with a $1,250 annual income tax credit for eligible K-12 education expenses paid for children in public schools. It directly affected parents, guardians, and teachers of public school students by covering costs like tuition, textbooks, online learning programs, educational therapies, and school supplies. The credit would apply to expenses paid to public schools or specific accredited/non-accredited providers (with disclosure), but could not exceed a taxpayer’s total tax liability. The bill aimed to offset rising education costs for families in Montana’s public education system. (Note: This bill died in committee in May 2025 and did not become law.)

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides direct tax relief via $1,250 annual credit for K-12 education expenses, reducing taxable income for middle-income families and aligning with tax relief indicators.95% confidence ✓ EducationSupports EducationProvides $1,250 annual tax credit for K-12 expenses, reducing family costs and increasing access to education through direct financial support.95% confidence

Sub-Topics Income Tax

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