Senate Bill No. [insert bill number] aims to provide various tax credits to support families with children and child-care workers in Montana. The bill introduces a child tax credit of $1,200 (reduced to $600 for certain income levels), which is available to resident taxpayers with qualifying children under the age of five. Additionally, it establishes a credit of $1,600 for child-care workers who have been employed for at least six months and worked a minimum of 20 hours per week. Employers are also eligible for a tax credit for dependent care assistance provided to employees, capped at $5,000. The bill mandates annual adjustments to these credit amounts based on inflation.

The bill amends Section 15-30-2303 of the Montana Code Annotated to include provisions for the review of these new tax credits by the revenue interim committee. It also clarifies definitions related to earned income and inflation factors, while removing previous references to investment income and certain child-care definitions. The new tax credits will be applicable to income tax years beginning after December 31, 2025, and the department is granted rulemaking authority to administer these credits effectively.

Statutes affected:
LC Text: 15-30-2303
SB0321_1(1): 15-30-2303
SB0321_1(2): 15-30-2303
SB0321_1(3): 15-30-2303
SB0321_1(4): 15-30-2303
SB0321_1(5): 15-30-2303
SB0321_1(6): 15-30-2303
SB0321_1: 15-30-2303
SB0321_2(1): 15-30-2303
SB0321_2(2): 15-30-2303
SB0321_2(3): 15-30-2303
SB0321_2(4): 15-30-2303
SB0321_2(5): 15-30-2303
SB0321_2(6): 15-30-2303
SB0321_2(7): 15-30-2303
SB0321_2(8): 15-30-2303
SB0321_2: 15-30-2303