Bill > LC1026

This bill establishes a new tax rebate fund and creates a mechanism for individual income tax rebates for Montana residents in 2026. The bill creates a tax rebate fund that will be funded through excess state revenues, with rebates contingent on the fund having at least $100 million by October 1, 2026. Eligible taxpayers who filed a Montana individual income tax return for 2024 and were state residents for the entire year can receive a one-time rebate. The rebate amount varies based on the total money in the tax reduction fund and the taxpayer's filing status, with single filers and married individuals filing separately receiving one amount, and married couples filing jointly receiving double that amount. The rebate is calculated by dividing the fund's balance by a specified number of anticipated distributions, with different calculations depending on the fund's total value. Importantly, the rebate cannot exceed the taxpayer's 2024 individual income tax liability, and certain individuals such as dependents, non-residents, and trusts are excluded from receiving the rebate. The bill also includes provisions for calculating and transferring excess revenues to the tax rebate fund, ensuring the transfer only occurs if certain fiscal conditions are met.

https://bills.legmt.gov/#/lc/bill/2/LC1026