House Bill No. [insert bill number] introduces a new tax credit for residents of Montana for the birth of a child, allowing a credit against state income taxes in the year the child is born. The credit is capped at $3,000 or the total of Montana and federal income taxes due, plus employee contributions under the Federal Insurance Contributions Act, whichever is lesser. Taxpayers must provide details about the child's birth and parents on their tax return to claim the credit. The bill also includes provisions for a refundable credit, which can exceed the taxpayer's tax liability, and outlines income thresholds that reduce the credit amount based on the taxpayer's federal adjusted gross income.

Additionally, the bill amends Section 15-30-2303 of the Montana Code Annotated to include the new birth tax credit among those that must be reviewed by the revenue interim committee. The committee will evaluate the effectiveness and impact of this credit alongside other tax credits during specified biennial reviews. The act is set to apply to income tax years beginning after December 31, 2025, and includes rulemaking authority for the department to administer the credit.

Statutes affected:
LC Text: 15-30-2303
HB0537_1(1): 15-30-2303
HB0537_1(10): 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