The bill aims to increase the income tax deduction for contributions to a family education savings account in Montana. It amends existing laws, specifically sections 15-30-2120 and 15-62-207 of the Montana Code Annotated (MCA), to allow individuals to reduce their taxable income by the lesser of $4,500 or the amount of their contribution to these accounts. For married taxpayers filing jointly, the maximum deduction is set at $9,000. Additionally, the bill introduces provisions for annual inflationary adjustments to the deduction amount starting in 2025, ensuring that the deduction keeps pace with inflation.

Furthermore, the bill includes a retroactive applicability clause, meaning it will apply to tax years beginning after December 31, 2024. It also specifies that contributions must be made to accounts owned by the contributor, their spouse, or their child or stepchild if the latter is a Montana resident. The legislation is designed to encourage savings for education by providing a more substantial tax benefit to families contributing to education savings accounts.

Statutes affected:
LC Text: 15-62-207
HB0845_1(1): 15-62-207
HB0845_1(2): 15-62-207
HB0845_1(3): 15-62-207
HB0845_1(4): 15-62-207
HB0845_1(5): 15-62-207
HB0845_1(6): 15-62-207
HB0845_1: 15-62-207
HB0845_2(1): 15-62-207
HB0845_2(10): 15-62-207
HB0845_2(11): 15-62-207
HB0845_2(12): 15-62-207
HB0845_2(2): 15-62-207
HB0845_2(3): 15-62-207
HB0845_2(4): 15-62-207
HB0845_2(5): 15-62-207
HB0845_2(6): 15-62-207
HB0845_2(7): 15-62-207
HB0845_2(8): 15-62-207
HB0845_2(9): 15-62-207
HB0845_2: 15-62-207
HB0845_X(1): 15-30-2120, 15-62-207
HB0845_X(2): 15-30-2120, 15-62-207
HB0845_X(3): 15-30-2120, 15-62-207
HB0845_X(4): 15-30-2120, 15-62-207
HB0845_X: 15-30-2120, 15-62-207