HB 334 sought to revise laws concerning disaster and emergency funding. The bill proposed to increase the statutory appropriation available to the Governor's office for declared emergencies from $16 million to $22 million per two-year period, effective July 1, 2025. It also would have allowed the Department of Military Affairs to use up to $3 million annually from this fund for disaster and emergency services activities, such as planning, training, and response, without a formal governor's declaration. Unspent funds at the end of each biennium would continue to be transferred to the fire suppression account.
HB 827 aimed to revise the taxation of Social Security benefits at the state level in Montana. The bill proposed to modify how the federal calculation for taxing Social Security benefits is applied when determining an individual's state income tax. This change would have directly affected Montana residents receiving Social Security benefits by potentially altering the portion of those benefits subject to state income tax. The bill included provisions for a delayed effective and applicability date.
HB 839 proposes a new $500 income tax credit for certain long-time residents of the state. To qualify, a taxpayer must have resided in the state for the prior 10 years, defined as at least 7 months per year, and have an income less than $100,000. This credit is non-refundable and cannot be carried forward to other tax years. If enacted, it would apply to income tax years beginning after December 31, 2025.
HB 906 amends existing Montana property tax rebate laws to provide financial relief to homeowners by increasing rebate amounts for principal residences occupied in 2022 and 2023. The bill allows eligible taxpayers who owned and lived in their homes for at least seven months during those years to receive up to $319 for 2022 and $330 for 2023, or the full amount of taxes paid if it is less than those limits. Property owners must submit claims electronically or by mail between August 15 and October 1 each year, and the state will mail notices to potential claimants by June 30 of the following year. The legislation also clarifies definitions for principal residences and outlines procedures for handling claims from deceased taxpayers or those in revocable trusts.
HB 916 aimed to provide property tax assistance specifically for primary residences. The bill proposed to fund this relief by revising the allocation of revenue generated from the state's lodging tax. This mechanism would have redirected a portion of the lodging tax proceeds, which are currently distributed to various state programs supporting tourism, historical preservation, and state parks, towards property tax relief for homeowners.
This bill would allow businesses in Montana to receive a state income tax credit for payment processing fees they direct to charitable organizations, provided the payment processor reimburses the state for the credit amount in the first year it is claimed. The credit applies to both individual and corporate income taxes and can be carried forward for up to two years if it exceeds the taxpayer's tax liability for that year. The legislation defines payment processing fees as charges for electronic transactions like credit card or digital wallet payments and specifies that charitable organizations must meet federal charitable contribution standards. The bill also requires the credit to be attributed to shareholders or partners if claimed by certain business structures.
HB 847 proposed to provide funding for grizzly bear management in Montana. The bill aimed to appropriate $210,000 annually from the general license account to the Department of Fish, Wildlife, and Parks (FWP) for the biennium starting July 1, 2025. This funding was specifically designated to create and support two new full-time bear technician positions within FWP Region 3, located in Southwest Montana. These technicians would assist in managing human-wildlife interactions and conflicts as grizzly bear populations expand in the region. The legislature intended for this appropriation to become part of FWP's ongoing base funding.
HB 320 establishes Montana's Academic Prosperity Program for Scholars (MAPPS) to offer educational options for eligible students aged 5-19. The program provides state income tax credits to individuals and corporations who donate to educational assistance accounts for participating students, and also to parents for their qualified education expenses. A program manager oversees these funds and their distribution for educational assistance, with guidance from a new MAPPS council. Students participating in MAPPS are exempt from public school compulsory enrollment requirements.
This bill proposes changes to Montana's capital gains tax structure, which would affect taxpayers earning income from investments such as stocks or real estate. Under the proposed changes, net long-term capital gains would be taxed at lower rates of 3.0% or 4.1% for income up to certain thresholds, while income exceeding $1 million for joint filers or $500,000 for other filers would be taxed at the standard rate of 5.9%. The bill also includes provisions to adjust tax brackets annually for inflation and defines specific income thresholds that determine how capital gains are taxed. The legislation would take effect on January 1, 2026, though it did not advance further in the legislative process before its deadline.
HB 243 proposed a new state income tax credit for qualified volunteer emergency first responders. This credit would apply to individuals providing active, uncompensated volunteer service as firefighters, EMTs, auxiliary officers, or search and rescue volunteers. The credit amount would be the lesser of $15 per hour of service or $1,500 annually. If the credit exceeds a taxpayer's liability, the excess amount would be refunded. The bill's stated purpose was to retain existing volunteers and recruit new ones, with an applicability date for income tax years beginning January 1, 2026.