Budget & Taxes (Income Tax)

died · Montana · House May 20, 2025

HB 900: Provide income tax credit for payment processing fees directed to a charitable organization

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax credit for businesses, promoting economic activity and fiscal responsibility through charitable payment processing fee incentives.85% confidence

Sub-Topics Business Taxes Income Tax

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signed · Montana · House May 19, 2025

HB 329: Make the Montana ammunition act permanent

HB 329 aims to encourage the formation of ammunition component manufacturing businesses in Montana. It establishes various state tax exemptions for qualified manufacturers, including property, individual income, corporate income, and other business-related taxes. To receive these exemptions, manufacturers must make their products available to in-state consumers at prices no higher than those for out-of-state purchasers. Additionally, the bill provides individual and corporate income tax exemptions to investors and lenders who provide loans to these eligible ammunition component manufacturers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax exemptions for corporate, property, and individual income taxes for ammunition manufacturers, constituting tax relief that aligns with support indicators for tax policy.95% confidence

Sub-Topics Business Taxes Income Tax

signed · Montana · House May 16, 2025

HB 129: Provide income tax benefit to support emergency response volunteers

HB 129 provides an income tax benefit for volunteer firefighters and volunteer emergency care providers in Montana. The bill allows these "full-service volunteers" to subtract a specific amount from their taxable income. This deduction is designed to increase annually with an inflation factor. The legislation amends existing state tax code to implement these changes, with a delayed effective date.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax deduction for volunteer emergency responders, reducing taxable income, a form of tax relief for lower/middle income volunteers.95% confidence

Sub-Topics Income Tax

died · Montana · House May 20, 2025

HB 895: Provide exclusion from income for certain income from sale of a newly constructed residence

House Bill 895 (HB 895) proposed to allow individuals and businesses to subtract a portion of the income earned from the sale of a newly constructed residence when calculating their Montana state taxable income. This means that a part of the profit from selling these homes would be exempt from state income tax. The bill aimed to adjust Montana's tax code by creating this specific income exclusion. It would directly affect sellers of newly built homes by potentially reducing their state income tax liability.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax exclusion for new home sales, providing tax relief per tax code adjustment, aligning with support indicators for tax relief.95% confidence

Sub-Topics Business Taxes Income Tax

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signed · Montana · Senate May 16, 2025

SB 93: Revise income taxes related to retired military members

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemptions for military retirees, reducing state tax revenue through permanent relief - aligns with tax relief indicator for specific groups.90% confidence ✓ VeteransSupports VeteransExpands tax exemptions for military pensions, removes residency limits, and makes exemption permanent, directly enhancing veterans' financial benefits per bill summary.95% confidence

Sub-Topics Income Tax

vetoed · Montana · House Jul 23, 2025

HB 831: Increase elderly homeowner and renter income tax credit

HB 831 increases Montana's elderly homeowner and renter income tax credit to help low-to-moderate-income seniors. It raises the maximum credit from $1,150 to $1,400 and increases the household income threshold for eligibility from $35,000 to $50,000 before the credit phases out. The bill also requires annual inflation adjustments to maintain the credit's value and applies retroactively to tax years beginning after December 31, 2024. This directly benefits Montanans aged 65+ who own or rent homes and meet the updated income limits.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax credit for low-to-moderate-income seniors, expanding eligibility and providing direct tax relief through higher credit amounts and income thresholds.95% confidence ✓ HousingSupports HousingIncreases tax credit for elderly homeowners/renters, expanding affordability for low-to-moderate-income seniors in housing through higher credit amounts and income thresholds.95% confidence

Sub-Topics Income Tax Homeownership Property Taxes Renters

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died · Montana · House May 20, 2025

HB 859: Provide income tax credits for contributions to a community improvement organization

This bill would have established an income tax credit for individuals and corporations in Montana who make cash contributions to qualified community improvement organizations. These organizations are defined as tax-exempt groups with no paid staff that raise or distribute funds to support public facilities owned by the state or local government. The credit amount would be equal to the contribution, capped at the lesser of 10% of taxable income or $3,000, and could be carried forward for three years. An aggregate statewide limit on the total amount of credits claimed annually would have been set, starting at $2 million in 2026 and potentially increasing in subsequent years, requiring preapproval from the Department.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax credits for contributions to community organizations supporting public facilities, reducing taxable income for donors and incentivizing private funding for public infrastructure.95% confidence

Sub-Topics Income Tax

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died · Montana · House May 20, 2025

HB 320: Establish the Montana's academic prosperity program for scholars act

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides state income tax credits for education donations and expenses, directly advancing tax policy to fund educational programs through fiscal incentives.95% confidence ✓ EducationSupports EducationCreates MAPPS program using tax credits to expand educational access and funding options for students aged 5-19 through donations and qualified expenses.95% confidence

Sub-Topics Income Tax School Choice

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died · Montana · Senate May 23, 2025

SB 157: Provide income tax deduction up to 150% for charitable donations

SB 157 would have allowed Montana taxpayers who itemize deductions on their federal tax returns to deduct up to 150% of their charitable contributions from their Montana state income tax. This provision, added to Montana's tax code, would have directly affected individual filers who itemize federal deductions and make charitable gifts. The bill proposed a specific mechanism where the state deduction amount would be calculated as 150% of the federal charitable deduction amount claimed. However, the bill was tabled in committee and later died in the legislative process in May 2025, so it did not become law.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax relief through expanded charitable deduction (150% vs 100%), reducing state tax liability for itemizing donors while encouraging charitable giving.95% confidence

Sub-Topics Income Tax

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died · Montana · House May 20, 2025

HB 163: Provide for health care preceptor individual income tax credit

HB 163 proposed creating a new individual income tax credit for health care professionals who volunteer as preceptors in Montana. The bill would allow licensed preceptors to claim a $1,000 credit for each eligible clinical rotation, up to a maximum of $5,000 per tax year, provided they do not receive compensation for their supervisory role. An eligible clinical rotation requires a minimum of 100 hours of direct supervised training for students in various graduate-level health care programs within the state. This nonrefundable credit aimed to support preceptors who educate advanced practice registered nursing, medical, physician assistant, and other health care students.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates a $1,000 individual income tax credit for health care preceptors, providing direct tax relief and reducing taxable income under tax policy.95% confidence ✓ HealthcareSupports HealthcareProvides tax credit to incentivize healthcare preceptors, strengthening workforce development for clinical training in health services.90% confidence

Sub-Topics Income Tax

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