Senate Bill No. [insert bill number] proposes revisions to the calculation of income tax liabilities for certain taxpayers in Montana by establishing an income-based tax credit that phases out as income increases. The bill introduces a new section that allows qualified taxpayers to receive a credit against their Montana taxable income based on their filing status. The credit is set at 4.7% of the first $2,000 for joint returns, $1,500 for head of household, and $1,000 for individual returns, with a gradual reduction of the credit amount as income exceeds these thresholds. The bill also clarifies that the credit cannot exceed the taxpayer's income tax liability and cannot be carried forward or back.

Additionally, the bill amends Section 15-30-2303 of the Montana Code Annotated to include the new income-based tax credit in the list of tax credits subject to review by the interim committee. The act is set to take effect on January 1, 2026, and will apply to income tax years beginning after December 31, 2025. The bill includes provisions for the Department to publish the amount of credit available based on Montana taxable income, ensuring transparency and accessibility for taxpayers.

Statutes affected:
LC Text: 15-30-2303
SB0546_1(1): 15-30-2303
SB0546_1(2): 15-30-2303
SB0546_1(3): 15-30-2303
SB0546_1(4): 15-30-2303
SB0546_1: 15-30-2303
SB0546_2(1): 15-30-2303
SB0546_2(2): 15-30-2303
SB0546_2(3): 15-30-2303
SB0546_2(4): 15-30-2303
SB0546_2(5): 15-30-2303
SB0546_2(6): 15-30-2303
SB0546_2(7): 15-30-2303
SB0546_2(8): 15-30-2303
SB0546_2: 15-30-2303