House Bill No. [insert bill number] aims to provide tax incentives for the sale of food produced in Montana by amending existing tax laws. Specifically, it introduces a subtraction from both individual and corporate income taxes for 50% of the net income generated from the sale of Montana-produced food, as defined in the bill. The bill amends Sections 15-30-2120 and 15-31-113 of the Montana Code Annotated (MCA), removing certain language while adding provisions that clarify the definition of "Montana-produced food" and the reporting requirements for taxpayers. Additionally, it establishes a delayed effective date of January 1, 2026, and specifies that the act will apply to income tax years beginning after December 31, 2025, with a termination date set for December 31, 2031.

The bill defines "Montana-produced food" as items used by humans for food or drink that are cultivated, harvested, or processed within the state, excluding food prepared for onsite consumption. The amendments to Section 15-31-113 also clarify that 50% of the net income from the sale of such food will be excluded from gross income for corporate tax purposes. This legislative effort is intended to support local agriculture and food production by providing financial incentives to businesses engaged in these activities.

Statutes affected:
LC Text: 15-30-2120, 15-31-113
HB0440_1(1): 15-30-2120, 15-31-113
HB0440_1(2): 15-30-2120, 15-31-113
HB0440_1(3): 15-30-2120, 15-31-113
HB0440_1(4): 15-30-2120, 15-31-113
HB0440_1(5): 15-30-2120, 15-31-113
HB0440_1: 15-30-2120, 15-31-113
HB0440_2(1): 15-30-2120, 15-31-113
HB0440_2(2): 15-30-2120, 15-31-113
HB0440_2(3): 15-30-2120, 15-31-113
HB0440_2(4): 15-30-2120, 15-31-113
HB0440_2(5): 15-30-2120, 15-31-113
HB0440_2(6): 15-30-2120, 15-31-113
HB0440_2(7): 15-30-2120, 15-31-113
HB0440_2(8): 15-30-2120, 15-31-113
HB0440_2: 15-30-2120, 15-31-113