Senate Bill No. [insert bill number] introduces an income tax credit aimed at alleviating the financial burden of primary and secondary education expenses for parents, guardians, and teachers. The bill allows a credit against the tax imposed by 15-30-2103, which is equal to the lesser of the amount paid for education expenses or $1,250. Notably, the bill specifies that the credit cannot be refunded if the taxpayer's tax liability is less than the amount of the credit, a change from previous provisions that allowed refunds regardless of tax liability. The definition of "education expenses" has been expanded to include various costs associated with education, such as fees, textbooks, tutoring, and educational therapies, while also clarifying the types of education providers eligible for the credit.

Additionally, the bill amends Section 15-30-2303, MCA, to include the new primary and secondary education expenses credit in the list of tax credits subject to review by the revenue interim committee. This review process will assess the effectiveness and impact of the credit on taxpayers and the economy. The provisions of the bill are set to apply to income tax years beginning on or after January 1, 2026, and the new section is intended to be codified as part of Title 15, chapter 30.

Statutes affected:
LC Text: 15-30-2303
SB0549_1(1): 15-30-2303
SB0549_1(2): 15-30-2303
SB0549_1(3): 15-30-2303
SB0549_1(4): 15-30-2303
SB0549_1(5): 15-30-2303
SB0549_1: 15-30-2303
SB0549_2(1): 15-30-2303
SB0549_2(2): 15-30-2303
SB0549_2(3): 15-30-2303
SB0549_2(4): 15-30-2303
SB0549_2(5): 15-30-2303
SB0549_2(6): 15-30-2303
SB0549_2(7): 15-30-2303
SB0549_2(8): 15-30-2303
SB0549_2(9): 15-30-2303
SB0549_2: 15-30-2303
SB0549_3(1): 15-30-2303
SB0549_3(10): 15-30-2303
SB0549_3(2): 15-30-2303
SB0549_3(3): 15-30-2303
SB0549_3(4): 15-30-2303
SB0549_3(5): 15-30-2303
SB0549_3(6): 15-30-2303
SB0549_3(7): 15-30-2303
SB0549_3(8): 15-30-2303
SB0549_3(9): 15-30-2303
SB0549_3: 15-30-2303