Provide income tax deduction for qualified business income

This bill (LC 1002) allows Montana taxpayers who claim the federal qualified business income deduction (Section 199A of the Internal Revenue Code) to also deduct that same amount from their Montana state taxable income. It directly affects Montana residents and businesses operating as pass-through entities (like S-corps, partnerships, and sole proprietorships) that qualify for the federal deduction. The key provision amends Montana’s tax code to add a specific subtraction for the federal 199A deduction amount, aligning state tax calculations with federal treatment. This reduces Montana taxable income by the amount claimed under the federal deduction, with immediate effective and retroactive application.