This bill creates a Montana state income tax credit for parents who pay for nonpublic school education expenses, including private school tuition, homeschooling costs, textbooks, and extracurricular fees. The credit allows taxpayers to deduct up to 44.7% of eligible expenses paid for a qualifying student who receives full-time academic instruction in a nonpublic education setting, with the credit limited to the taxpayer's actual tax liability. Eligible expenses include tuition, educational therapies, computer hardware used for learning, and fees for activities commonly offered in public schools, while excluding entertainment devices and certain costs like meals and travel. The Montana Superintendent of Public Instruction would have rulemaking authority to implement specific details of the program.
This bill creates a new Educational Opportunity Fund within Montana's Coal Severance Tax Trust Fund and uses earnings from that fund to increase the maximum limits for educational tax credits. The legislation affects taxpayers and corporations by allowing them to claim tax credits for donations to public schools for innovative programs and to student scholarship organizations. Key provisions include raising the annual aggregate limit for tax credits from $5 million to a higher amount based on fund earnings, removing the sunset date for these credit programs, and establishing rules for how school districts must handle excess donations. The bill also requires school districts to seek department preapproval for donations before issuing tax credit receipts to donors.
This bill creates a tax credit for taxpayers in Montana who donate money to certified public infrastructure projects, allowing them to reduce their state tax liability by 50% of the gift's present value, up to a maximum of $500,000. The credit applies to donations made to state or local government projects that build or acquire facilities serving the public, such as health clinics, libraries, museums, and senior centers, which must be officially certified by the state department. To claim the credit, taxpayers must obtain a receipt from the government confirming the donation and the project's eligibility, and any unused portion of the credit can be carried forward for three years. The bill also adds this new tax credit to a list of other credits that the state's revenue interim committee must review every eight years to assess their effectiveness and impact.
This bill creates a new refundable tax credit for Montana residents who have a child born in the year they file their taxes, providing up to $3,000 to help offset state and federal income taxes. The credit amount is reduced for higher-income families, with phase-out thresholds of $60,000 for most filers and $120,000 for married couples filing jointly, and it requires parents to report the child's birth information on their tax return. Additionally, the bill adds this new credit to a list of other tax incentives that must be reviewed by the revenue interim committee every eight years to assess their effectiveness and impact on taxpayer decisions.
This bill establishes a new workforce renter's tax credit for Montana residents under 62 with household incomes below $45,000 who pay rent-equivalent property taxes, allowing eligible renters to claim up to $1,200 or $1,750 depending on their rent-to-income ratio. It also permits qualifying teachers to exclude certain earned income when calculating this credit and ensures any excess credit is refunded even if the taxpayer has no state income tax liability. Additionally, the bill increases the residential property tax credit for elderly residents and includes an inflationary adjustment to the income thresholds where these credits begin to phase out. The legislation also schedules periodic reviews of various tax credits, including the new workforce renter's credit, to evaluate their effectiveness and impact on taxpayers every eight years.
This bill establishes a Montana child tax credit for resident taxpayers with qualifying children aged 5 or younger, providing a maximum refundable credit of $1,200 per child. The credit is reduced by $90 for every $1,000 of federal adjusted gross income exceeding $50,000, and it is not available if income surpasses a $56,000 threshold regardless of filing status. The legislation also adds this child tax credit to a list of tax credits that must be reviewed by the revenue interim committee every eight years to evaluate their effectiveness and impact. These policy changes apply to Montana income tax years beginning after December 31, 2025.
This bill creates a Montana income tax credit for landlords who rent residential properties at rates below the local fair market value. Landlords can claim $2 for every $100 their rent is under 110% of the county's fair market rent, with a maximum credit limited to their annual tax liability. To qualify, properties must have lease terms of at least one year, meet federal housing quality standards, and not already participate in other rent-limiting programs. The credit can be carried forward for up to three years if not fully used, and the bill requires landlords to submit proof of rent amounts and lease agreements when claiming the benefit.
This Montana bill establishes three tax credits to support families and child-care workers: a $1,200 child tax credit for parents of children age 5 or younger, a $1,600 credit for child-care workers who work at least 20 hours per week for six months, and a $5,000 maximum credit for employers who provide dependent care assistance to employees. The child tax credit is available to residents with earned income and limited investment income, while the worker credit applies to those employed in licensed day-care centers, family homes, or early childhood programs. All three credits are refundable and will be adjusted annually for inflation, with the department authorized to create rules for administering the program.
This bill creates a new Montana income tax credit for renters with household incomes under $45,000 who pay rent-equivalent property taxes. The credit equals the lesser of the amount by which rent-equivalent taxes exceed 4% of gross income or $500, with reduced credit amounts for those earning between $35,000 and $45,000. Renters cannot claim this credit if they also qualify for the elderly residential property tax credit, and any unused credit amount is refunded to the claimant. The legislation also adds the renter's tax credit to a list of tax credits that must be reviewed by the revenue interim committee every eight years starting in 2025.
This bill creates a new Montana tax credit for renters under 62 with household income below $45,000 who pay rent-equivalent property taxes, allowing them to claim up to $1,200 or $1,750 depending on their rent-to-income ratio. It also permits qualifying teachers to exclude certain earned income when calculating their eligibility for this credit. The legislation increases the residential property tax credit for elderly taxpayers and adjusts the income thresholds where these credits begin to phase out. Additionally, the bill schedules periodic reviews of various state tax credits starting in 2025 to assess their effectiveness and impact on taxpayers.
