House Bill No. [insert bill number] introduces a new tax credit for residents of Montana for the birth of a child. This credit allows taxpayers to claim a credit against their state income tax in the year their child is born, with the maximum credit amount set at $3,000 or the total of their Montana and federal income taxes due, plus employee contributions under the Federal Insurance Contributions Act. The credit is subject to income phase-outs, reducing by $150 for every $1,000 of federal adjusted gross income above specified thresholds. Additionally, the bill outlines specific requirements for claiming the credit, including providing the child's birth details and parent information.

The bill also amends Section 15-30-2303 of the Montana Code Annotated to include the new birth tax credit among the tax credits that must be reviewed by the revenue interim committee. This review will assess the effectiveness and impact of the credit, alongside other existing tax credits. The provisions of the bill are set to take effect for income tax years beginning after December 31, 2025, and the Department of Revenue is granted rulemaking authority to administer the credit.

Statutes affected:
LC Text: 15-30-2303
HB0537_1(1): 15-30-2303
HB0537_1(2): 15-30-2303
HB0537_1(3): 15-30-2303
HB0537_1(4): 15-30-2303
HB0537_1(5): 15-30-2303
HB0537_1(6): 15-30-2303
HB0537_1(7): 15-30-2303
HB0537_1(8): 15-30-2303
HB0537_1(9): 15-30-2303
HB0537_1: 15-30-2303