Bill > HB209

This bill establishes a tax credit for parents and guardians who incur expenses for students attending nonpublic education settings like private schools or homeschooling. The tax credit would allow taxpayers to claim up to 44.7% of the state's per-student funding rate for expenses such as tuition, textbooks, extracurricular activities, and additional educational expenses like educational therapies, paraprofessional support, vocational program fees, testing fees, and computer hardware. Only one taxpayer per student can claim the credit in a given tax year, and the credit cannot exceed the taxpayer's tax liability. In cases of divorced or separated parents, a noncustodial parent may claim the credit under specific conditions, such as having a court order awarding tax benefits or obtaining a written declaration from the custodial parent. The bill defines numerous terms related to educational expenses and establishes that the superintendent of public instruction will create rules for determining eligible expenses. The tax credit will be subject to periodic review by the state's revenue interim committee to evaluate its effectiveness and impact. The bill will apply to income tax years beginning after December 31, 2025, giving time for implementation and preparation.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC1701