Bill > HB440

This bill provides tax incentives for the sale of Montana-produced food by allowing both individual and corporate taxpayers to subtract 50% of the net income generated from selling locally produced food directly to consumers from their state income tax calculations. The bill defines "Montana-produced food" as food and beverage items that are planted, grown, harvested, raised, collected, processed, or manufactured in Montana, excluding prepared food meant for onsite consumption. Taxpayers will be required to report the net income from food specifically identified as Montana-produced. The tax incentive will take effect on January 1, 2026, and apply to income tax years beginning after December 31, 2025, with a built-in sunset provision that terminates the tax benefit on December 31, 2031. The goal of this legislation appears to be encouraging the sale and consumption of locally produced food by providing a financial incentive to businesses that sell such products, potentially supporting Montana's agricultural economy and local food producers.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC3338