Senate Bill No. [number] proposes an amendment to Section 15-30-2120 of the Montana Code Annotated, introducing an additional charitable deduction for individual income tax returns. The bill specifies that the deduction amount will vary based on whether the taxpayer itemized deductions on their federal return. Specifically, if a taxpayer did not itemize, they can deduct up to 150% of the amount that would have been deductible for charitable contributions on a federal return. Conversely, if the taxpayer did itemize, they can deduct 50% of the amount claimed for charitable contributions. This new provision is inserted as subsection (3)(o) and will replace the previous language in that section.

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 to benefit from the new charitable deduction structure in future tax filings. The bill includes a termination clause for certain provisions, indicating that the new charitable deduction will be in effect until June 30, 2025, while other related provisions will terminate on December 31, 2033.

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