This bill revises the tax credits for donations to public schools and student scholarship organizations in Montana by amending Sections 15-30-3110 and 15-30-3111 of the Montana Code Annotated (MCA). It increases the maximum credit for donations to both public schools and student scholarship organizations to $200,000 each. Additionally, the bill establishes an aggregate limit of $1 million for tax credits in 2022, which will rise to $2 million for 2023 and subsequent years, with a provision to increase this limit by 20% if 80% of the aggregate limit is preapproved by the department by December 31 of each year.

Furthermore, the bill repeals several sections from Chapter 480 of the Laws of 2021 and clarifies that the credits cannot exceed the taxpayer's income tax liability. It outlines a preapproval process for donations by school districts and scholarship organizations, requiring them to issue receipts upon preapproval. The bill also ensures retroactive applicability to income tax years beginning after December 31, 2022, and takes effect immediately upon passage and approval, aiming to enhance funding for educational programs and scholarships while ensuring effective management of the tax credits.

Statutes affected:
Introduced: 15-30-3110, 15-30-3111