House Bill No. introduced by S. Rosenzweig proposes revisions to the tax rates for net long-term capital gains in Montana. The bill amends Section 15-30-2103 of the Montana Code Annotated, adjusting the tax brackets and rates for various categories of taxpayers. Notably, the tax rate on net long-term capital gains for married individuals filing jointly is reduced from 3.0% to 2% for the first $50,000 of net long-term capital gains, with subsequent brackets set at 4% for gains between $50,000 and $250,000, and 4.5% for gains between $250,000 and $2 million. The top rate of 5% applies to gains exceeding $2 million. Similar adjustments are made for heads of households and individual taxpayers, with the first bracket also reduced to 2% and the top rate increased to 5%.

Additionally, the bill introduces a new section specifying that these changes will apply to income tax years beginning after December 31, 2025. The definitions of "net long-term capital gains" and "nonqualified taxable income" are also clarified in the bill, ensuring that taxpayers understand what constitutes taxable income under the new regulations. Overall, the bill aims to provide a more favorable tax structure for long-term capital gains, potentially encouraging investment and economic growth in Montana.

Statutes affected:
LC Text: 15-30-2103
HB0868_1(1): 15-30-2103
HB0868_1(2): 15-30-2103
HB0868_1(3): 15-30-2103
HB0868_1: 15-30-2103