This bill revises Montana's income tax laws to align with previous income tax simplification efforts. Key updates include changes to marital filing status references, an extension of tax filing deadlines that coincide with federal holidays, and a clarification of what constitutes a qualified withdrawal from education savings accounts by referencing the Internal Revenue Code. Notable amendments include a reduction in the withholding rate on mineral royalty payments from 6% to 5.9% and an increase in the maximum deduction for married taxpayers filing jointly for contributions to education savings accounts from $3,000 to $6,000. The bill is designed to take effect immediately upon passage and includes provisions for retroactive applicability.

Additionally, the bill introduces new definitions, such as "qualified withdrawal," which allows for special rollovers from education savings accounts to Roth IRAs, alongside withdrawals for qualified education expenses. It also removes the previous cap on deductions for contributions to education savings accounts, enhancing the flexibility and benefits of the family education savings program. The bill establishes an effective date upon passage and approval, with retroactive applicability to tax years beginning after December 31, 2024, ensuring that the changes impact both current and past tax years.

Statutes affected:
LC Text: 15-30-2120, 15-30-2339, 15-30-2342, 15-30-2538, 15-62-103, 15-62-207, 53-25-117