Budget & Taxes (Tax Incentives)

HB 922 proposes to establish a new education tax credit for resident taxpayers who are parents or legal guardians of children attending nonpublic schools. This bill would allow a $250 credit per eligible student each year, applied against the taxpayer's income tax liability. Any unused credit could be carried forward for up to three years. The legislation also revises the review schedule for existing tax credits and aims to provide parity in aggregate limits for educational programs in public and nonpublic school settings.

HB 412 proposed a new property tax exemption for homeowners who modify their existing residential properties to add living space. This exemption would apply to the increase in market value due to the modification, up to a limit of 15% of the property's market value before the modification. However, it would not apply to modifications made within three years of new construction, and only one exemption could be granted every six years, terminating upon the sale of the property. The Department of Revenue would automatically grant this exemption, which was set to begin in tax years after December 31, 2025.

HB 19 requires local governments (like cities or counties) to hold a public hearing before using tax revenue from a tax increment financing district to pay for bonds that would extend the district's life beyond 15 years. This applies when a local government wants to pledge future tax revenue to fund bonds for urban renewal or economic development projects. The bill mandates that the local government must notify the county and school district where the project is located and hold the hearing to determine if extending the district is necessary to fulfill its development plan. The law takes effect for bond pledges made after its enactment date.

SB 371 would create a tax incentive by allowing Montana taxpayers to subtract income from Montana-produced goods from their individual and corporate income tax calculations. It directly affects businesses and individuals selling goods manufactured or grown within Montana, reducing their taxable income for those specific sales. The bill amends Montana's tax code to define "Montana-produced goods" and establish this subtraction as a specific adjustment to federal taxable income. This policy change aims to support local producers by lowering their state tax burden on sales of locally made products.