Senate Bill No. [insert bill number] introduces a new renter's income tax credit aimed at individuals with a gross household income of less than $45,000 who pay rent-equivalent property taxes. The credit is designed to provide financial relief by allowing eligible renters to claim a credit equal to the lesser of their rent-equivalent tax that exceeds 4% of their gross household income or $500. For those with incomes between $35,000 and $45,000, the credit amount is adjusted based on a percentage scale. Additionally, the bill stipulates that if the credit exceeds the claimant's tax liability, the excess will be refunded, and it cannot be claimed alongside the residential property tax credit for the elderly.

The bill also amends existing sections of the Montana Code Annotated (MCA) to incorporate the new renter's tax credit and establishes a review schedule for various tax credits, including the newly introduced renter's credit. The act is set to take effect immediately upon passage and approval, with retroactive applicability to income tax years beginning after December 31, 2024, and a termination date of December 31, 2028. The amendments include the insertion of the renter's tax credit into the review process for tax credits, ensuring it will be evaluated alongside other credits in future bienniums.

Statutes affected:
LC Text: 15-30-2303, 15-30-2337, 15-30-2340
SB0225_1(1): 15-30-2303, 15-30-2337, 15-30-2340
SB0225_1(2): 15-30-2303, 15-30-2337, 15-30-2340
SB0225_1(3): 15-30-2303, 15-30-2337, 15-30-2340
SB0225_1(4): 15-30-2303, 15-30-2337, 15-30-2340
SB0225_1: 15-30-2303, 15-30-2337, 15-30-2340