Senate Bill No. introduced by G. Hertz aims to revise income tax deductions for certain trade or business expenses by allowing a qualified business income tax deduction based on the amount claimed under Section 199A of the Internal Revenue Code. The bill amends Section 15-30-2120 of the Montana Code Annotated (MCA) to include new provisions regarding the treatment of the qualified business income deduction, specifically removing the previous language that mandated a deduction for taxpayers claiming the qualified business income deduction under Section 199A. The bill also introduces new sections that establish an immediate effective date upon passage and approval, as well as retroactive applicability to tax years beginning after December 31, 2024.

The amendments to Section 15-30-2120 include various adjustments to federal taxable income to determine Montana taxable income, with specific items added and subtracted from federal taxable income. The bill outlines the conditions under which taxpayers can claim deductions, including provisions for military pensions and retirement income, and establishes a framework for the treatment of contributions to education savings accounts. Overall, the bill seeks to streamline the tax deduction process for businesses and individuals while ensuring compliance with federal tax regulations.

Statutes affected:
LC Text: 15-30-2120
SB0538_1(1): 15-30-2120
SB0538_1(2): 15-30-2120
SB0538_1(3): 15-30-2120
SB0538_1(4): 15-30-2120
SB0538_1: 15-30-2120