The bill aims to revise Montana's income tax structure by lowering tax rates and increasing the thresholds for taxable income before higher rates apply. Specifically, it proposes to increase the income brackets for various filing statuses, such as married individuals, heads of households, and single filers, while reducing the highest income tax rate from 5.9% to 5.4%. Additionally, the bill introduces an increase in the earned income tax credit from 10% to 20% of the federal credit, thereby providing more financial relief to eligible taxpayers.

Key amendments include changes to the tax brackets in Section 15-30-2103, where the income thresholds for lower tax rates are significantly raised, and the highest tax rate is reduced. The bill also modifies the definition of the inflation factor used for adjusting tax brackets, ensuring that it reflects updated economic conditions. The effective dates for these changes are staggered, with some provisions taking effect in 2026 and others in 2027, while Section 1 is set to terminate on December 31, 2026.

Statutes affected:
LC Text: 15-30-2103
HB0337_1(1): 15-30-2103
HB0337_1(2): 15-30-2103
HB0337_1(3): 15-30-2103
HB0337_1(4): 15-30-2103
HB0337_1: 15-30-2103
HB0337_2(1): 15-30-2103, 15-30-2318
HB0337_2(10): 15-30-2103
HB0337_2(11): 15-30-2103
HB0337_2(12): 15-30-2103
HB0337_2(13): 15-30-2103
HB0337_2(14): 15-30-2103
HB0337_2(15): 15-30-2103
HB0337_2(16): 15-30-2103
HB0337_2(17): 15-30-2103
HB0337_2(18): 15-30-2103
HB0337_2(19): 15-30-2103
HB0337_2(2): 15-30-2103, 15-30-2318
HB0337_2(20): 15-30-2103
HB0337_2(21): 15-30-2103
HB0337_2(22): 15-30-2103
HB0337_2(23): 15-30-2103
HB0337_2(24): 15-30-2103
HB0337_2(3): 15-30-2103, 15-30-2318
HB0337_2(4): 15-30-2103, 15-30-2318
HB0337_2(5): 15-30-2103
HB0337_2(6): 15-30-2103
HB0337_2(7): 15-30-2103
HB0337_2(8): 15-30-2103
HB0337_2(9): 15-30-2103
HB0337_2: 15-30-2103, 15-30-2318
HB0337_3(1): 15-30-2103
HB0337_3(2): 15-30-2103
HB0337_3(3): 15-30-2103
HB0337_3: 15-30-2103
HB0337_4(1): 15-30-2103
HB0337_4(10): 15-30-2103
HB0337_4(2): 15-30-2103
HB0337_4(3): 15-30-2103
HB0337_4(4): 15-30-2103
HB0337_4(5): 15-30-2103
HB0337_4(6): 15-30-2103
HB0337_4(7): 15-30-2103
HB0337_4(8): 15-30-2103
HB0337_4(9): 15-30-2103
HB0337_4: 15-30-2103
HB0337_X(1): 15-30-2103, 15-30-2318
HB0337_X(10): 15-30-2103, 15-30-2318
HB0337_X(11): 15-30-2103, 15-30-2318
HB0337_X(12): 15-30-2103, 15-30-2318
HB0337_X(2): 15-30-2103, 15-30-2318
HB0337_X(3): 15-30-2103, 15-30-2318
HB0337_X(4): 15-30-2103, 15-30-2318
HB0337_X(5): 15-30-2103, 15-30-2318
HB0337_X(6): 15-30-2103, 15-30-2318
HB0337_X(7): 15-30-2103, 15-30-2318
HB0337_X(8): 15-30-2103, 15-30-2318
HB0337_X(9): 15-30-2103, 15-30-2318
HB0337_X: 15-30-2103, 15-30-2318