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 filing jointly, 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 income tax brackets, with significant increases in the income thresholds for lower tax rates, and a reduction in the tax rate applied to higher income levels. The bill also establishes a modified inflation factor for future adjustments to these brackets, ensuring they remain relevant over time. The effective dates for these changes are staggered, with some provisions taking effect on January 1, 2026, and others on January 1, 2027, while certain sections will 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