House Bill No. introduced by F. Nave proposes an income tax credit for businesses that direct payment processing fees to charitable organizations. The bill allows taxpayers to claim a credit against either individual or corporate income tax for the amount of payment processing fees directed to a charitable organization, provided that the payment processor reimburses the state for the credit amount in the first year it is claimed. The credit can be carried forward for up to two years if it exceeds the taxpayer's tax liability. Additionally, the bill specifies that no credit will be allowed for amounts already deducted as charitable contributions, but taxpayers can choose to claim the credit instead of a deduction.

The bill also amends Section 15-30-2303 of the Montana Code Annotated to include the new credit for businesses directing payment processing fees to charitable organizations among the tax credits subject to review by the interim committee. The act is set to apply to income tax years beginning after December 31, 2025. The bill includes definitions for "charitable organization," "payment processing fee," and "payment processor," and establishes guidelines for how the credit is to be attributed among shareholders or partners in certain business structures.

Statutes affected:
LC Text: 15-30-2303
HB0900_1(1): 15-30-2303
HB0900_1: 15-30-2303