Senate Bill No. [insert bill number] proposes an additional charitable deduction for individual income tax returns in Montana, amending Section 15-30-2120 of the Montana Code Annotated (MCA). The bill introduces a new deduction structure based on whether taxpayers itemize deductions on their federal returns. Specifically, it allows taxpayers who do not itemize to deduct an amount equal to 150% of what would have been deductible for charitable contributions on a federal return, while those who do itemize can deduct 50% of their claimed charitable contributions. This new provision is inserted as subsection (3)(o) in the existing law, while the previous language in subsection (3)(o) is renumbered to (3)(p).

The bill also establishes a delayed effective date, with the new provisions set to take effect on January 1, 2026, and applicable to income tax years beginning after December 31, 2025. This allows taxpayers and the state to prepare for the changes in tax deductions related to charitable contributions. The bill aims to encourage charitable giving by providing additional tax relief to individuals based on their filing status.

Statutes affected:
LC Text: 15-30-2120
SB0157_1(1): 15-30-2120
SB0157_1(2): 15-30-2120
SB0157_1(3): 15-30-2120
SB0157_1(4): 15-30-2120
SB0157_1(5): 15-30-2120
SB0157_1: 15-30-2120