HB 451 revises how tax increment financing (TIF) is calculated for newly established targeted economic development districts and urban renewal areas. For districts created after the bill's effective date, it excludes several specific mill levies from the tax increment calculation. These exclusions include certain university system mills, a portion of elementary, high school, and state equalization mills, new voter-approved levies, and mills for general obligation bond debt service. This means that a larger share of the new property tax revenue generated in these areas would directly go to the affected taxing jurisdictions, rather than into the TIF fund.
HB 220 would establish a refundable child tax credit for Montana resident taxpayers with children under age 5. It provides a $1,200 credit per qualifying child, phasing out for taxpayers with federal adjusted gross income over $56,000 (with a $50,000 phaseout threshold). The credit is refundable, meaning eligible families could receive it as a payment even if they owed no state income tax. The bill also adds the child tax credit to Montana’s required periodic review schedule for tax credits. The bill died in committee on May 22, 2025, and did not become law.
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 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.
HB 837 establishes a statewide Retired Teacher Induction and Mentoring Program to support new teachers by pairing them with retired teachers from the same school district. School districts can optionally participate, matching a new teacher with a former teacher for up to three months of guidance. Participating districts compensate retired teachers hourly for up to 36 hours, and the Office of Public Instruction then reimburses these costs. The program, funded by an annual $100,000 state appropriation, aims to provide new teachers with support such as classroom feedback, administrative assistance, and help with district policies.
HB 537 proposed creating a new "birth day" tax credit for resident taxpayers in Montana upon the birth of a child. The credit would be up to $3,000, or the total of the taxpayer's Montana income taxes, federal income taxes, and FICA contributions, whichever is less. This credit would be refundable, allowing taxpayers to receive a refund even if they have no state tax liability. The credit amount would be reduced for higher-income taxpayers and capped at $1,500 in certain situations, such as for parents filing separately or unmarried parents sharing custody. If passed, it would have applied to income tax years beginning after December 31, 2025.
HB 429, titled the "Inflation Protection Act of 2025," proposed creating a new state special revenue account within the state special revenue fund. This account would be initially funded by a $50 million transfer from the state's general fund by July 15, 2025, with additional funding from future legislative transfers. The bill authorized the Board of Investments to invest the funds in this account in precious metals, digital assets, and stablecoins. Any proceeds generated from these investments would remain within the account, affecting the state's financial management and investment strategies.
House Bill 950 sought to establish and maintain a Montana trade office in Israel, staffed by the Department of Commerce. The office's primary goal was to promote trade, tourism, and cultural exchange between Montana and Israel. It aimed to strengthen ties and expand opportunities in areas such as agriculture, technology, security, and educational programs. The bill proposed appropriating $500,000 from the general fund for the biennium beginning July 1, 2025, to fund the office. This act was intended to be effective July 1, 2025, and terminate on June 30, 2033.
HB 326, titled the "State Energy Resource Severance Act," would establish a new 10% tax on the sale price of electrical energy produced in the state. This tax would apply to electricity generated from sources such as water, wind, and solar, but specifically exempts coal-fired electrical generation. The bill also reduces the existing coal severance tax rate to match this new electrical energy production tax rate. Revenue from this new tax would be allocated to special accounts, primarily for local government infrastructure projects traditionally funded by coal.
