Senate Bill No. [number] proposes significant revisions to Montana's individual income tax laws, primarily focusing on reducing the top marginal income tax rate and increasing the earned income tax credit. The bill amends Sections 15-30-2103 and 15-30-2318 of the Montana Code Annotated (MCA). Notably, the top marginal tax rate for various income brackets is reduced from 5.9% to 5.4% for married individuals, heads of households, and other individual taxpayers. Additionally, the tax rate on net long-term capital gains is lowered from 4.1% to 3.9%. The earned income tax credit is also increased from 10% to 15% of the federal earned income credit.

The bill outlines specific effective dates for its provisions, with Sections 1 and 3 becoming effective on January 1, 2026, and Section 2 on January 1, 2027. Furthermore, Section 1 is set to terminate on December 31, 2026. The legislation aims to provide tax relief to residents while adjusting the tax structure to better reflect current economic conditions.

Statutes affected:
LC Text: 15-30-2103, 15-30-2318
SB0323_1(1): 15-30-2103, 15-30-2318
SB0323_1: 15-30-2103, 15-30-2318