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HB 845 Montana House · 2025 Regular Session

Increase IRC 529 education savings income tax deduction

HB 845 increases the state income tax deduction for individuals contributing to Family Education Savings Accounts (529 plans). Beginning in tax year 2025, the maximum annual deduction for these contributions will rise from $3,000 to $4,500. The bill also establishes an inflation factor to adjust this maximum deduction amount in subsequent tax years based on the consumer price index. These changes apply retroactively to tax years beginning after December 31, 2024, for contributions made to accounts owned by the contributor, their spouse, or a Montana resident child or stepchild.
Issues: ✓ Budget & TaxesSupports Budget & TaxesIncreases tax deduction for 529 education savings, providing direct tax relief to individuals through higher annual deduction ($3k→$4.5k) and inflation adjustment.95% confidence ✓ EducationSupports EducationIncreases tax deduction for 529 education savings, directly incentivizing higher education affordability and access through expanded tax benefits.95% confidence
Bill status signed all 5 stages cleared
Introduction
Mar 2025
Committee Review
Apr 2025
House Passage
May 2025
Senate Passage
May 2025
Signed into Law
May 2025
Introduced Mar 19, 2025 Signed May 19, 2025
Maddy AI version diff · 4 comparisons

What changed between versions

HB0845_X(2).pdf → HB0845_X(3).pdf · 2 edits
MINOR
The bill text was updated to correct a grammatical error in the title by removing the repeated word 'sections' and changing 'section sections' to 'sections'. Additionally, the effective date was modified to be retroactive, meaning the new tax deduction rules will apply to contributions made before the bill's passage, rather than only starting from the current date.
Scope change
The bill's scope of applicability was expanded retroactively to cover past contributions.
TIMELINE

The effective date was changed from a standard immediate date to a retroactive date, allowing taxpayers to claim the new deduction for contributions made prior to the bill's enactment.

TECHNICAL

A typo in the bill title was corrected by removing the redundant word 'sections' before the specific statute numbers.

Floor votes · Senate Apr 22, 2025 · House Apr 2, 2025

How they voted

48–2
Passed
Total votes 50
Apr 22, 2025
D Democratic18
18 Yea
100% Yea
R Republican32
30 Yea 2 Nay
93% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
45
Key actions
9
Committee
6
May 13, 2025
Signed into law
(H) Signed by Governor
lower
May 6, 2025
Upper · Passed
(S) Signed by President
upper
May 2, 2025
Lower · Passed
(H) Signed by Speaker
lower
Apr 22, 2025
Senate · Passed
Senate Vote: pass (48-2)
senate
Apr 9, 2025
Upper · Passed
(S) Committee Report - (S) Taxation
upper
Apr 9, 2025
Upper · Passed
(S) Committee Executive Action - (S) Taxation
upper
Apr 3, 2025
Committee
(S) Referred to Committee - (S) Taxation
upper
Apr 2, 2025
House · Passed
House Vote: pass (93-2-5)
house
Mar 28, 2025
Lower · Passed
(H) Committee Report - (H) Taxation
lower
Mar 28, 2025
Lower · Passed
(H) Committee Executive Action - (H) Taxation
lower
Mar 20, 2025
Committee
(H) Referred to Committee - (H) Taxation
lower
Mar 19, 2025
Introduced
(H) Introduced
lower
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Julie Darling
Julie Darling
RRepublican
MT
84