Bill > SB321

This bill introduces three new tax credits to support families and child care workers in Montana. First, a child tax credit of $1,200 per qualifying child (defined as 2 years old or younger) will be available to residents with earned income and low investment income, with the credit amount phasing out for higher-income taxpayers. Second, a tax credit of $1,000 will be available for child-care workers who are employed for at least 6 months and work a minimum of 20 hours per week, including those working in licensed day-care centers, Head Start programs, and other licensed child-care facilities. Third, the bill provides a business-supported dependent care credit for employers, allowing them to claim up to $2,500 for dependent care assistance provided to employees. All three credits will be annually adjusted for inflation and can be claimed as refunds if the taxpayer's tax liability is less than the credit amount. The bill also amends existing tax credit review schedules to include these new credits in future legislative reviews. These provisions aim to address Montana's child care crisis, where nearly 60% of counties are classified as child-care deserts and the total child care capacity meets only 44% of estimated demand, with the average cost of child care for children under 5 being approximately $20,000 per year.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC0462