Budget & Taxes (Tax Incentives)

introduced · Montana · Legislature Feb 6, 2025

LC 1380: Provide exemption for certain modifications to residential property

This bill creates a property tax exemption for homeowners who modify their existing residential structures to add living space. It directly affects owners of class four residential property who make changes like expanding a building or altering its form. The exemption allows owners to exclude the lesser of the increase in market value caused by the modification or 15% of the property's prior year market value from their property tax calculation. The exemption is automatically granted by the department of revenue, but it cannot be claimed for properties built within the last three years, is limited to once every six years per property, and ends when the property is sold. The changes apply to tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax exemption for homeowners modifying residential structures, reducing tax burden and supporting homeownership.85% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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introduced · Montana · Legislature Mar 14, 2025

LC 3693: Provide for a property tax deferral loan program

This bill establishes a property tax deferral loan program in Montana to help eligible homeowners manage rising property tax costs. The program directly affects senior citizens aged 62 and older, active-duty military personnel from Montana, and surviving spouses of qualifying property owners who meet specific equity and residency requirements. Under the bill, the state Board of Housing can provide loans to cover the difference between current property taxes and 2022 tax amounts, with annual increases allowed as long as eligibility is maintained. The loans accrue simple interest at the lesser of the prime mortgage rate or 5% and become a lien on the property, requiring homeowners to carry hazard insurance and meet income and equity thresholds.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax relief to seniors and military through deferral loans, directly supporting tax assistance for vulnerable populations.90% confidence ✓ HousingSupports HousingBill establishes property tax deferral loans for seniors and military to help manage housing costs, directly supporting affordable housing access for vulnerable populations.85% confidence ✓ VeteransSupports VeteransBill includes active-duty military personnel from Montana as eligible recipients of property tax deferral loans, providing financial assistance to veterans.85% confidence

Sub-Topics Tax Incentives Mortgages Property Taxes

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introduced · Montana · Legislature Feb 26, 2025

LC 3305: Generally revise tobacco tax laws

This bill revises Montana's cigarette tax from $1.70 to $2.70 per pack of 20 cigarettes and updates related tax provisions for other tobacco products. The changes directly affect wholesalers, retailers, and consumers by increasing the cost of purchasing cigarettes and adjusting tax rates on premium cigars and moist snuff. Key provisions include maintaining a tax exemption system for tribal members on reservations through a quota-based distribution process, requiring wholesalers to obtain department approval before shipping untaxed cigarettes to tribal retailers, and establishing new tax rates of 50% of wholesale price for other tobacco products. The bill also clarifies refund procedures for wholesalers selling to tribal retailers and ensures retailers assume taxes have been paid unless explicitly stated otherwise on invoices.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases cigarette taxes, generating additional state revenue for budget purposes and fiscal management.85% confidence

Sub-Topics Procurement Tax Incentives

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introduced · Montana · Legislature Feb 6, 2025

LC 3338: Providing tax incentives to put Montana-produced food first

This bill proposes tax incentives for businesses and individuals who sell food produced in Montana by creating a state income tax subtraction for income derived from such sales. The legislation would amend existing state tax code sections to allow taxpayers to reduce their Montana taxable income when they earn revenue from locally produced food items. It directly affects Montana-based food producers, retailers, and consumers who purchase local products, aiming to support the state's agricultural economy through preferential tax treatment. The bill includes a delayed effective date and specifies when the provisions will apply to taxpayers.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax incentives for local food producers through income tax subtraction, supporting state agriculture and economic development while reducing tax burden on qualifying businesses.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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introduced · Montana · Legislature Feb 11, 2025

LC 850: Provide exemption for certain owner-occupied residential property owned by persons 65 or older

This bill creates a property tax exemption for Montana homeowners aged 65 or older who have lived in their primary residence for at least five years. The exemption reduces the tax owed by the difference between the property's current market value and its value in the year the exemption was first approved. To qualify, the home must be a single-family dwelling of up to five acres, and owners must file an application by March 1 of each tax year. The exemption ends if the property is sold or undergoes significant construction or remodeling, though owners may reapply after such changes. The law applies to property tax years beginning after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax relief for seniors, reducing tax burden and supporting fiscal relief for lower-income elderly homeowners.95% confidence ✓ HousingSupports HousingBill provides property tax exemption for seniors, reducing housing costs and protecting affordable housing access for older homeowners.85% confidence

Sub-Topics Property Tax Tax Incentives Homeownership Property Taxes

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introduced · Montana · Legislature Feb 12, 2025

LC 446: Increase business equipment tax exemption

This bill increases the tax exemption for business equipment classified as Class Eight property, which includes machinery, tools, and equipment used in agriculture, mining, manufacturing, and other commercial operations. The legislation directs the state to reimburse local governments, tax increment financing districts, and the university levy for the lost tax revenue resulting from this expanded exemption. Unlike previous exemptions that received reimbursement with inflation adjustments, this new exemption will receive reimbursements without any growth rate applied. The changes take effect immediately upon passage and apply to all qualifying business equipment currently or newly classified under the amended tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill increases tax exemptions for business equipment and reimburses local governments for lost revenue, supporting business operations and maintaining local funding.85% confidence

Sub-Topics Business Taxes Property Tax Tax Incentives

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introduced · Montana · Legislature Feb 13, 2025

LC 1029: Provide a 5 year prepaid property tax exemption during subdivision development

This bill creates a temporary property tax exemption for real property undergoing subdivision development in Montana. To qualify, developers must submit an approved exemption application and prepay five years of property taxes before January 1 of the tax year. The exemption lasts up to five years regardless of ownership changes or land splits, but ends when a habitable dwelling is built on a lot or when 95% of the subdivision is complete. The Montana Department of Revenue will manage the program through new rules and amend existing tax assessment procedures to handle these exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides temporary property tax exemption for subdivision development, reducing tax burden on developers and promoting housing development through fiscal incentives.85% confidence ✓ HousingSupports HousingBill provides tax incentives to encourage subdivision development, which can increase housing supply and support housing development.75% confidence

Sub-Topics Property Tax Tax Incentives Property Development Property Taxes

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introduced · Montana · Legislature Feb 22, 2025

LC 730: Revise commercial property assessed capital enhancement program laws

This bill amends Montana laws to allow local governments to create programs that help commercial property owners finance improvements for energy efficiency and public safety. Under the new provisions, local governments can enter into contracts with property owners to pay for projects like better insulation, renewable energy systems, or structural upgrades that improve a building's ability to withstand disasters or power outages. The costs for these projects would be repaid through special assessments on the property rather than through traditional loans or grants. The bill defines eligible projects to include energy-saving measures, stormwater control, and specific firearm storage infrastructure, while clarifying that the financing must come from a third party.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enables local governments to fund energy efficiency and safety improvements through special assessments, promoting economic development and fiscal management.75% confidence ✓ EnergySupports EnergyBill enables local programs to finance energy efficiency improvements and renewable energy systems for commercial properties, directly advancing energy infrastructure and efficiency goals.85% confidence

Sub-Topics Business Taxes Tax Incentives Energy Efficiency Renewable Energy

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introduced · Montana · Legislature Jan 28, 2025

LC 4306: Make the Montana ammunition act permanent

This bill makes permanent a tax incentive program designed to encourage companies in Montana to manufacture ammunition components by offering significant tax breaks. The legislation exempts qualifying ammunition manufacturers from state property taxes, business equipment taxes, individual income taxes, and corporate income taxes, provided they sell products to both in-state and out-of-state consumers at equal prices and do not commit all production to out-of-state buyers. Additionally, lenders and investors who provide loans to these manufacturers receive exemptions from individual and corporate income taxes on income derived from those loans. The bill also extends property tax exemptions to real estate within 500 yards of manufacturing facilities and storage structures, while excluding local property taxes and payroll taxes from the exemptions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides significant tax breaks to ammunition manufacturers, reducing state revenue collection but promoting economic activity and job creation through tax incentives.85% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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introduced · Montana · Legislature Feb 5, 2025

LC 3009: Revise taxes for class 17 data center property

This bill amends Montana's property tax classification system to update how data centers are categorized and taxed. It extends the construction timeline for data center property from 15 years to 25 years and revises ownership requirements for qualifying facilities. The legislation also clarifies definitions for electrical generation facilities and telecommunications infrastructure, ensuring these assets are properly classified under existing tax rules. Additionally, it maintains the current 5-year tax exemption for fiber optic and coaxial cable while requiring reinvestment of tax savings into new infrastructure to preserve the benefit.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill updates tax classifications for data centers, likely generating revenue for state budget while clarifying tax rules for infrastructure development.75% confidence ✓ TechnologySupports TechnologyBill updates tax classification for data centers and extends construction timelines, supporting technology infrastructure development and digital infrastructure growth.75% confidence

Sub-Topics Business Taxes Tax Incentives Broadband Access Telecommunications

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