The bill revises the Contractor's Gross Receipts Tax by introducing provisions that allow employee stock ownership plan (ESOP) companies to claim a tax credit. It extends the timeframe for claiming this credit and specifies that it can be used to offset certain real property taxes. Additionally, the bill grants rulemaking authority to the department to administer these changes. The existing language that provided an exemption from the tax for certain individuals and businesses in good standing has been removed, and the definition section has been updated to reflect these changes.

Furthermore, the bill amends Section 15-50-207 of the Montana Code Annotated, detailing how the tax credits can be applied against various taxes, including corporate income tax and real property taxes. It establishes that contractors claiming credits against real property taxes must provide proof that all owed property taxes are paid in full. The act is set to take effect on January 1, 2026, and applies to accrued credit carryforwards available to contractors that are 100% employee-owned.

Statutes affected:
LC Text: 15-50-101
SB0536_1(1): 15-50-101
SB0536_1(2): 15-50-101
SB0536_1(3): 15-50-101
SB0536_1(4): 15-50-101
SB0536_1(5): 15-50-101
SB0536_1(6): 15-50-101
SB0536_1: 15-50-101
SB0536_2(1): 15-50-101, 15-50-207
SB0536_2(10): 15-50-101
SB0536_2(11): 15-50-101
SB0536_2(12): 15-50-101
SB0536_2(13): 15-50-101
SB0536_2(14): 15-50-101
SB0536_2(15): 15-50-101
SB0536_2(16): 15-50-101
SB0536_2(2): 15-50-101, 15-50-207
SB0536_2(3): 15-50-101, 15-50-207
SB0536_2(4): 15-50-101
SB0536_2(5): 15-50-101
SB0536_2(6): 15-50-101
SB0536_2(7): 15-50-101
SB0536_2(8): 15-50-101
SB0536_2(9): 15-50-101
SB0536_2: 15-50-101, 15-50-207
SB0536_3(1): 15-50-101
SB0536_3(2): 15-50-101
SB0536_3(3): 15-50-101
SB0536_3(4): 15-50-101
SB0536_3(5): 15-50-101
SB0536_3: 15-50-101
SB0536_X(1): 15-50-207
SB0536_X(2): 15-50-207
SB0536_X(3): 15-50-207
SB0536_X(4): 15-50-207
SB0536_X(5): 15-50-207
SB0536_X(6): 15-50-207
SB0536_X: 15-50-207