Bill > HB845

This bill increases the income tax deduction for contributions to family education savings accounts (529 plans) in Montana. Specifically, the bill raises the maximum tax deduction for individual taxpayers from $3,000 to $4,500 and for married couples filing jointly from $3,000 to $9,000. The bill also introduces an inflation adjustment mechanism that will automatically increase these deduction limits each year after 2025 based on the consumer price index. The deduction can only be claimed for contributions to accounts owned by the taxpayer, their spouse, or their child or stepchild who is a Montana resident. The bill is retroactively applicable to tax years beginning after December 31, 2024, meaning taxpayers can take advantage of the increased deduction limits for the 2025 tax year. The inflation adjustment provision ensures that the tax deduction remains meaningful over time by automatically increasing with the cost of living, helping to make education savings more attractive and financially beneficial for Montana taxpayers.

Budget and Finance

https://bills.legmt.gov/#/laws/bill/2/LC4225