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

SB0549_2(9).pdf → SB0549_3.pdf · 4 edits

MODERATE

This bill amends the Montana tax credit for primary and secondary education expenses. The most significant change is a new restriction preventing the credit from being refunded if a taxpayer's tax liability is less than the credit amount, meaning the credit can no longer be used to generate a cash refund. Additionally, the definition of 'education expenses' was reorganized and expanded to explicitly include fees for cooperative educational programs, while the definition of 'education provider' was clarified to ensure non-accredited tutors must formally inform parents of their status at enrollment.

Scope change

The scope of the tax credit remains focused on K-12 education expenses, but the financial benefit mechanism has been altered to prevent refunds, and the list of eligible providers and expenses has been refined.

ELIGIBILITY

Added a restriction that the tax credit cannot be refunded if the taxpayer's tax liability is less than the credit amount.

DEFINITION

Expanded the definition of 'education expenses' to explicitly include fees paid to cooperative educational programs.

Clarified the definition of 'education provider' to require non-accredited tutors to inform parents in writing at enrollment that they are not accredited.

Reorganized the list of allowable expenses to include tutoring, distance learning, curriculum, therapies, assessments, public school services, supplies, transportation, and cooperative program fees.

SB0549_2(2).pdf → SB0549_2(3).pdf · 4 edits

MODERATE

The bill amends the definition of 'Teacher' to explicitly include licensed paraprofessionals and educational aides employed by education providers. It also updates the schedule for reviewing specific tax credits, shifting the start dates for reviews from 2021 to 2023 and 2025 to 2027, and adds new credits for media production and postproduction to the review list.

Scope change

The definition of who qualifies as a 'Teacher' was expanded to include specific support staff, while the timeline for legislative review of tax credits was adjusted to future bienniums.

DEFINITION

The definition of 'Teacher' was modified to include licensed or certified paraprofessionals and educational aides employed by an education provider.

TIMELINE

The start date for the first biennium of tax credit reviews was changed from July 1, 2021, to July 1, 2023.

The start date for the second biennium of tax credit reviews was changed from July 1, 2025, to July 1, 2027.

REQUIREMENT

New tax credits for media production and postproduction were added to the list of credits subject to legislative review.

SB0549_1(5).pdf → SB0549_2.pdf · 4 edits

MODERATE

The bill was renumbered from SB 549.1 to SB0549.2, and its title was updated to explicitly state that the tax credit applies only to expenses incurred for public education. A new requirement was added mandating that parents or guardians be informed in writing if a tutoring provider or tutor is not accredited and is not seeking accreditation. The bill also reorganized the list of tax credits subject to legislative review, shifting the primary and secondary education expenses credit from the 2021 review cycle to the 2023 review cycle.

Scope change

The bill's scope was narrowed by adding a requirement that the tax credit is limited to expenses for public education, and the eligibility criteria for tutors were modified to require written notice regarding accreditation status.

SCOPE

The title and text were updated to clarify that the tax credit applies only to primary and secondary education expenses for public education.

REQUIREMENT

A new provision requires that non-accredited providers or tutors must inform parents or guardians in writing at the time of enrollment that they are not accredited and not seeking accreditation.

TIMELINE

The primary and secondary education expenses credit was moved from the 2021 review cycle to the 2023 review cycle in the list of tax credits subject to interim committee review.

TECHNICAL

The bill number was changed from SB 549.1 to SB0549.2.

LC1889.pdf → SB0549_1.pdf · 2 edits

MINOR

The bill was renumbered from LC 1889 to SB 549 and the list of sponsors was updated to reflect the current legislative session. The substantive text regarding the education expense tax credit, including credit amounts, eligible expenses, and definitions, remains unchanged. The bill also adds a blank line at the end of the document.

TECHNICAL

The bill identifier was changed from LC 1889 to SB 549, and the list of sponsors was updated to include J. Trebas and others.

A blank line was added at the end of the document.

Provide income tax credit for K-12 education expenses

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