Senate Bill No. [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 specified income thresholds, with reductions applied for every additional increment of taxable income. The bill also clarifies that the credit cannot exceed the taxpayer's income tax liability and cannot be carried forward or back. Additionally, it mandates that the Department publish the amount of credit available based on Montana taxable income.

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. It also includes provisions for the effective date of the act, which is set for January 1, 2026, and specifies that the act applies to income tax years beginning after December 31, 2025. Overall, the bill aims to provide targeted tax relief to certain taxpayers while ensuring that the credit is systematically reviewed for its effectiveness and impact.

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(10): 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(9): 15-30-2303
SB0546_2: 15-30-2303