The bill introduces an optional pass-through entity tax that serves as an alternative to the existing composite tax. It establishes procedures for entities to make this optional election and outlines that a distributive share of the entity tax paid can be claimed as a refundable credit. The legislation also includes definitions relevant to the new tax structure and grants rulemaking authority to ensure proper implementation.

Additionally, the bill amends sections 15-30-2110 and 15-30-2120 of the Montana Code Annotated (MCA) to incorporate these changes. It specifies effective dates for the new provisions and includes a retroactive applicability date, allowing the new tax framework to be applied to prior tax periods as well.

Statutes affected:
SB0554_1.pdf: 15-30-2110, 15-30-2120
Introduced: 15-30-2110, 15-30-2120