Bill > SB536

This bill modifies Montana's contractor gross receipts tax rules by expanding tax credit and refund options for contractors. Specifically, the bill allows contractors to use additional license fees as credits or refunds against corporate income tax, individual income tax, or as a refund for employee stock ownership plan (ESOP) corporations that are 100% employee-owned. The bill extends the carryforward period for these tax credits from 5 to 7 years, allowing contractors to apply unused credits to future tax years. The bill also permits contractors to credit real property taxes (excluding residential property), personal property taxes, and certain vehicle registration fees against license fees. To claim a credit against real property taxes, contractors must provide proof that all their state property taxes are paid in full. The department of revenue is authorized to adopt rules for administering these refunds. The bill will become effective on January 1, 2026, and applies retroactively to accrued credit carryforwards for ESOP corporations that were previously unable to claim credits.