Bill > SB546

This bill establishes a new income-based tax credit for Montana taxpayers that provides a graduated tax credit based on filing status and taxable income. The credit is calculated at 4.7% for the first $2,000 of taxable income for joint returns and surviving spouses, $1,500 for head of household returns, and $1,000 for individual and married individual returns not filing jointly. As a taxpayer's income increases, the credit is progressively reduced by 0.094% for each additional income increment specified in the bill. The credit cannot exceed a taxpayer's income tax liability and is not refundable or transferable, meaning it can only be used to offset taxes owed in the current year. To be eligible, a taxpayer must file a Montana individual income tax return and cannot be claimed as a dependent by another taxpayer. The bill also adds this new income-based tax credit to the list of tax credits that will be periodically reviewed by the revenue interim committee, and it will become effective January 1, 2026, applying to income tax years beginning after December 31, 2025.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC0007