This bill expands Montana's job growth incentive tax credit program to include apprentices working in the construction industry. It amends state tax laws to officially classify construction apprentices as "qualifying new employees" for the purpose of calculating tax credits when employers hire them. Companies hiring apprentices in construction can now receive the same annual tax credit benefits as those hiring other new employees, provided the apprentices meet specific wage and employment duration requirements. The legislation also updates administrative procedures for how the Department of Labor and Industry processes credit applications and audits employer claims. These changes are set to remain in effect through December 31, 2028.
HB 231 revises property tax laws by establishing reduced tax rates for certain class four residential and commercial properties. It provides a lower tax rate for qualifying owner-occupied principal residences and long-term rental properties, as well as for a portion of commercial property value. For principal residences, some owners will automatically qualify for the reduced rate for tax years 2025 and 2026 based on prior tax rebates or assistance programs. Beginning in tax year 2027, all owners seeking these reduced rates must apply to the department and meet specific eligibility criteria, such as demonstrating occupancy for a principal residence or rental periods for long-term rentals.
SB 542 generally revises property tax laws, affecting various property owners. The bill freezes property values for tax years 2025 and 2026 at their 2024 levels, unless a decrease is determined by the Department of Revenue. It provides a property tax rebate of up to $400 for principal residences based on 2024 property taxes paid, which taxpayers must claim between August 15 and October 1, 2025. Additionally, the legislation reduces tax rates for Class Three agricultural property and revises rates for Class Four residential and commercial properties, including lower rates for owner-occupied homes, long-term rentals, and a portion of commercial property value.
House Bill 161 establishes a new "vending machine account" within the state's special revenue fund for the Department of Public Health and Human Services (DPHHS). This account will receive a percentage of income collected by DPHHS from vending machines located on federal and state properties that are not operated by blind vendors. The money in this account is statutorily appropriated to DPHHS, meaning the department can use these funds for specific program purposes consistent with federal law without needing further legislative approval. The bill is effective starting July 1, 2025.
SB 93 revises state income tax laws concerning military pensions, retirement, and survivor benefits. The bill expands the eligibility for tax exemptions on these benefits to include certain individuals who became or remained residents of the state after a specific date. It also eliminates the previous 5-year limit for claiming the exemption and removes the statutory sunset, making the exemption permanent. This means more retired military members and their survivors in Montana will be able to exempt their military retirement income from state taxes indefinitely.
SB 326 revises Montana's MEDIA Act film tax credits, extending them through 2045 and increasing the aggregate credit limit. The bill provides additional tax credits for production companies that hire veterans and enrolled tribal members. It establishes a fee for unused allocated credits, with these funds directed to a new film industry workforce training account to support workforce development. These changes aim to expand job opportunities and encourage investment in Montana's media manufacturing sector.
SB 409 revises laws related to the Department of Commerce and changes how revenues from the lodging facility use tax are distributed. The bill modifies the allocation of these tax proceeds among various state programs and entities, including the Montana historical society, state parks, and regional tourism corporations. A key provision expands and permanently establishes the program providing emergency lodging for victims of domestic violence or human trafficking, funded by a portion of these tax revenues. It also adjusts specific uses for funds allocated directly to the Department of Commerce, such as for the renovation of the Miles City train depot.
HB 881 proposed to revise the existing Medicaid buy-in program to include children with disabilities. This would expand eligibility for the program, allowing more children with disabilities to access Medicaid services. The bill also included an appropriation and extended rulemaking authority for the relevant department to implement these changes. It aimed to amend specific sections of Montana law concerning Medicaid administration and eligibility requirements.
HB 880 establishes the Medicaid Stabilization Reserve Account, a state special revenue fund designed to help maintain Medicaid benefits during state revenue shortfalls. The account would be primarily funded by transferring any unused state general fund appropriations for Medicaid at the end of a fiscal year. Funds from this account could only be appropriated by the legislature for state Medicaid matching funds after the budget director certifies a projected general fund deficit. This mechanism aims to mitigate expenditure reductions in the Medicaid program, directly affecting the stability of services for beneficiaries. The bill also includes an initial appropriation of $50,000 for state Medicaid matching funds.
SB 133 revises the laws governing impact fees that local governments charge on new development. The bill removes the ability for governmental entities to include an administrative fee within impact charges and limits impact fee increases to the rate of inflation. It also updates definitions related to these fees and details the required documentation for their calculation, such as a service area report.
