Budget & Taxes (Income Tax)

introduced · Montana · Legislature Jan 24, 2025

LC 2582: Establish the Montana's academic prosperity program for scholars act

This bill establishes Montana's Academic Prosperity Program for Scholars (MAPPS), a voluntary program allowing parents to use income tax credits to fund private education expenses for eligible students. The program creates a council to oversee operations and a program manager to administer tax credits for donations and qualified education expenses, which can include private school tuition or other instructional costs. Participating parents gain flexibility to direct their children's education while schools must transfer student records, and the program operates alongside the state's existing public school funding system.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credit program for education expenses, providing tax relief to families and promoting educational choice through voluntary participation.75% confidence ✓ EducationSupports EducationBill creates tax credit program allowing parents to fund private education, expanding educational access and choice for families.75% confidence

Sub-Topics Income Tax School Choice School Funding

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introduced · Montana · Legislature Dec 20, 2024

LC 570: Revise income taxes related to retired military members

This bill revises Montana's income tax rules to better align state taxation with federal tax treatment for military pensions, retirement benefits, and survivor benefits. It expands the exemption for certain individuals who became Montana residents or remained residents after a specific date, removes a previous five-year limit on claiming this exemption, and eliminates a statutory sunset provision that would have ended the exemption. The legislation also amends existing tax code sections to clarify how various military-related income items are calculated for state tax purposes, ensuring consistency with federal tax definitions. These changes directly affect Montana residents receiving military retirement income and their dependents, providing more permanent tax relief without changing the fundamental structure of the state income tax system.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief to military retirees by expanding exemptions and removing limits, aligning state taxation with federal treatment and reducing tax burden on this group.85% confidence ✓ VeteransSupports VeteransBill expands tax exemptions for military pensions and retirement benefits, removing limits and sunset provisions to better align state taxation with federal treatment for veterans.95% confidence

Sub-Topics Income Tax Military Families

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introduced · Montana · Legislature Feb 21, 2025

LC 3441: Preclude non-profit officers from personal liability for unpaid tax withholding

This bill modifies Montana's tax withholding laws to protect volunteer officers of small nonprofit organizations from personal liability for unpaid taxes and missed filings. The exemption applies only to officers and directors who do not receive monetary compensation and only covers a 12-month period of non-compliance. Small nonprofits are defined as those that employ 10 or fewer paid employees at any time during the calendar year. If a small nonprofit fails to withhold taxes or file required statements for more than 12 months, or if an officer receives wages, they lose this protection and become individually responsible for the unpaid amounts. The legislation amends existing state code to clarify these conditions and limit liability for unpaid taxes, penalties, and interest.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill protects small nonprofit officers from personal tax liability, promoting fiscal responsibility and encouraging volunteer leadership in nonprofit organizations.85% confidence

Sub-Topics Income Tax

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introduced · Montana · Legislature Feb 10, 2025

LC 3160: Require DOR to accept income tax payments in cryptocurrency

This bill requires Montana's Department of Revenue to accept state income tax payments in cryptocurrency through third-party payment processors. It mandates that all cryptocurrency payments be converted to U.S. dollars before the state receives the funds, ensuring the government collects value in traditional currency. The legislation clarifies that using cryptocurrency to pay taxes does not trigger state capital gains taxes for the taxpayer. The program would begin applying to income tax years starting after December 31, 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill modernizes tax payment options and clarifies cryptocurrency tax treatment, potentially increasing tax compliance and revenue collection efficiency.85% confidence ✓ TechnologySupports TechnologyBill promotes cryptocurrency acceptance for tax payments, advancing digital payment options and modernizing state revenue collection through technology integration.85% confidence

Sub-Topics Income Tax Emerging Technology

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introduced · Montana · Legislature Jan 14, 2025

LC 1701: Prove income tax credit for nonpublic school expenses such as private or homeschool tuition

This bill creates a Montana state income tax credit for parents who pay for nonpublic school education expenses, including private school tuition, homeschooling costs, textbooks, and extracurricular fees. The credit allows taxpayers to deduct up to 44.7% of eligible expenses paid for a qualifying student who receives full-time academic instruction in a nonpublic education setting, with the credit limited to the taxpayer's actual tax liability. Eligible expenses include tuition, educational therapies, computer hardware used for learning, and fees for activities commonly offered in public schools, while excluding entertainment devices and certain costs like meals and travel. The Montana Superintendent of Public Instruction would have rulemaking authority to implement specific details of the program.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credit for nonpublic school expenses, providing tax relief and reducing state tax burden for families while maintaining state revenue structure.85% confidence ✓ EducationSupports EducationBill provides tax credit for nonpublic school expenses, expanding educational access and funding options for private and homeschool education.90% confidence

Sub-Topics Income Tax Tax Credits School Choice

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introduced · Montana · Legislature Feb 22, 2025

LC 1715: Provide property tax rebate on principal residence based on taxes paid

This Montana bill creates a one-time property tax rebate of up to $400 for homeowners who paid property taxes on their principal residence in 2024. The rebate is limited to the actual amount of taxes paid and applies to single-family homes, apartments, and manufactured homes where the taxpayer lived for at least seven months during the year. Eligible homeowners must submit claims between August 15 and October 1, 2025, by mail or online, and the rebate is not subject to Montana income tax. The bill also establishes penalties for false claims and allows appeals if a rebate application is denied.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax relief to homeowners, reducing their tax burden and offering financial assistance to residents.90% confidence ✓ HousingSupports HousingBill provides property tax rebate for homeowners, reducing housing costs and supporting affordable housing access75% confidence

Sub-Topics Income Tax Property Tax Property Taxes

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introduced · Montana · Legislature Jan 8, 2025

LC 8: Establish a housing fairness tax credit

This bill creates a new housing fairness income tax credit for Montana residents who pay property taxes on their homes or rent-equivalent amounts on their rentals. It directly affects homeowners and renters with household incomes under $150,000 who have lived in Montana for at least nine months and occupied their residence for at least six months of the tax year. The credit amount is calculated based on household income, with higher credits available for lower-income households, and it cannot be combined with the existing residential property tax credit for the elderly. The legislation also clarifies that taxpayers cannot claim this credit if they receive public rent subsidies or property tax subsidies, and it amends several existing Montana code sections to incorporate these new provisions.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credit for low-to-moderate income residents, providing tax relief and supporting housing affordability through state revenue mechanisms.85% confidence ✓ HousingSupports HousingBill creates tax credit for homeowners and renters with income under $150K, directly supporting affordable housing access and financial relief for housing costs.90% confidence

Sub-Topics Income Tax Affordable Housing Housing Finance Property Taxes

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introduced · Montana · Legislature Mar 17, 2025

LC 4083: Provide income tax credit for certain long-time residents

This bill creates a $500 income tax credit for Montana residents who have lived in the state for at least 10 years and earn less than $100,000 annually. To qualify, taxpayers must have resided in Montana for at least seven months during each of the prior 10 years, and the credit applies only to income tax years beginning after December 31, 2025. The legislation also requires the revenue interim committee to review this credit, along with other existing tax credits, every eight years to assess whether they should continue or be modified.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides income tax credit for long-time residents earning under $100k, offering tax relief to middle/lower income taxpayers90% confidence

Sub-Topics Income Tax

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introduced · Montana · Legislature Feb 26, 2025

LC 2895: Revise social security income taxation

This bill revises Montana's state income tax calculations by adjusting how federal taxable income is modified to determine state taxable income. It directly affects Montana residents who file state income tax returns, particularly those with complex federal tax situations involving investments, retirement accounts, or business income. The key provision adds certain federal deductions back to income for state tax purposes while subtracting specific Montana-exempt items like interest on U.S. government bonds and military salaries. The bill also clarifies how withdrawals from savings accounts for medical, education, or home purchase purposes are treated differently depending on whether they are used for eligible expenses.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill modifies state income tax calculations to potentially provide tax relief for Montana residents with complex federal tax situations, aligning with fiscal management goals.85% confidence

Sub-Topics Business Taxes Income Tax

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introduced · Montana · Legislature Mar 20, 2025

LC 2016: Provide income tax credit for firearm suppressors

This bill creates a Montana income tax credit to help offset the cost of federal tax stamps required for purchasing firearm suppressors. The credit is limited to $50 per taxpayer and can only be claimed in the year the tax stamp is purchased, with any unused portion refunded if the taxpayer has no tax liability. The measure is designed to reduce the financial burden of complying with federal regulations on suppressors, which are currently expensive to register. The credit will be available for tax years beginning on or after January 1, 2026, and will expire on December 31, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides income tax credit to offset federal tax stamp costs, reducing financial burden and offering tax relief to taxpayers.85% confidence

Sub-Topics Income Tax Procurement

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