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 Section 15-30-2103, which outlines the tax rates for various income brackets. Specifically, it reduces the top marginal tax rate from 5.9% to 5.4% for married individuals, heads of household, and other individual taxpayers on income exceeding specified thresholds. Additionally, the tax rate on net long-term capital gains is also reduced from 4.1% to 3.9% for similar income brackets.

Furthermore, the bill amends Section 15-30-2318 to increase the earned income tax credit from 10% to 15% of the federal earned income credit. The effective dates for these changes vary, with some provisions taking effect on January 1, 2026, and others on January 1, 2027. Notably, Section 1, which includes the income tax rate reductions, is set to terminate on December 31, 2026. The bill aims to provide tax relief to residents while adjusting the structure of the state's income tax system.

Statutes affected:
LC Text: 15-30-2103, 15-30-2318
SB0323_1(1): 15-30-2103, 15-30-2318
SB0323_1(2): 15-30-2103, 15-30-2318
SB0323_1(3): 15-30-2103, 15-30-2318
SB0323_1(4): 15-30-2103, 15-30-2318
SB0323_1: 15-30-2103, 15-30-2318