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- 2025
69th Legislature 2025 HB 831
- 1 - Authorized Print Version – HB 831
ENROLLED BILL
AN ACT REVISING THE ELDERLY HOMEOWNER AND RENTER INCOME TAX CREDIT; REVISING THE
DEFINITION OF HOUSEHOLD INCOME; INCREASING THE MAXIMUM CREDIT AMOUNT; REVISING THE
PHASEOUT OF THE CREDIT; PROVIDING AN INFLATIONARY ADJUSTMENT FOR THE INCOME AT
WHICH THE CREDIT PHASES OUT; AMENDING SECTIONS 15-30-2337 AND 15-30-2340, MCA;
REPEALING SECTIONS 4, 5, 9 AND 10, CHAPTER 476, LAWS OF 2021; AND PROVIDING AN IMMEDIATE
EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-30-2337, MCA, is amended to read:
"15-30-2337. Residential property tax credit for elderly -- definitions. As used in 15-30-2337
through 15-30-2341, the following definitions apply:
(1) "Claim period" means the tax year for individuals required to file Montana individual income tax
returns and the calendar year for individuals not required to file returns.
(2) "Claimant" means a person who is eligible to file a claim under 15-30-2338.
(3) "Department" means the department of revenue.
(4) "Gross household income" means all income received by all individuals of a household while
they are members of the household.
(5) "Gross rent" means the total rent in cash or its equivalent actually paid during the claim period
by the renter or lessee for the right of occupancy of the homestead pursuant to an arm's-length transaction with
the landlord.
(6) "Homestead" means:
(a) a single-family dwelling or unit of a multiple-unit dwelling that is subject to property taxes in
Montana and as much of the surrounding land, but not in excess of 1 acre, as is reasonably necessary for its
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69th Legislature 2025 HB 831
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ENROLLED BILL
use as a dwelling; or
(b) a single-family dwelling or unit of a multiple-unit dwelling that is rented from a county or
municipal housing authority as provided in Title 7, chapter 15.
(7) (a) "Household" means an association of persons who live in the same dwelling, sharing its
furnishings, facilities, accommodations, and expenses.
(b) The term does not include bona fide lessees, tenants, or roomers and boarders on contract.
(8) "Household income" means the amount obtained by subtracting [$12,600] $14,100 from gross
household income.
(9) (a) "Income" means, except as provided in subsection (9)(b), federal adjusted gross income,
without regard to loss, as that quantity is defined in the Internal Revenue Code of the United States, plus all
nontaxable income, including but not limited to:
(i) the amount of any pension or annuity, including Railroad Retirement Act benefits and veterans'
disability benefits;
(ii) the amount of capital gains excluded from adjusted gross income;
(iii) alimony;
(iv) support money;
(v) nontaxable strike benefits;
(vi) cash public assistance and relief;
(vii) interest on federal, state, county, and municipal bonds; and
(viii) all payments received under federal social security except social security income paid directly
to a nursing home.
(b) For the purposes of this subsection (9), income is reduced by the taxpayer's basis.
(10) "Property tax billed" means taxes levied against the homestead, including special assessments
and fees but excluding penalties or interest during the claim period.
(11) "Rent-equivalent tax paid" means 15% of the gross rent. (Bracketed language in subsection (8)
is temporarily amended to "$6,300" on occurrence of contingency for income tax years 2022, 2023, 2024, and
2025 until December 31, 2025--sec. 13, Ch. 476, L. 2021.)"
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69th Legislature 2025 HB 831
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Section 2. Section 15-30-2340, MCA, is amended to read:
"15-30-2340. Residential property tax credit for elderly -- computation of relief. (1) The amount
of the tax credit granted under the provisions of 15-30-2337 through 15-30-2341 is computed as follows:
provided in this section.
(1)(2) In Subject to subsection (4):
(a) in the case of a claimant who owns the homestead for which a claim is made, the credit is the
amount of property tax billed less the deduction specified in subsection (4) (3). ;
(2)(b) In in the case of a claimant who rents the homestead for which a claim is made, the credit is
the amount of rent-equivalent tax paid less the deduction specified in subsection (4) (3). ; and
(3)(c) In in the case of a claimant who both owns and rents the homestead for which a claim is made,
the credit is:
(a)(i) the amount of property tax billed on the owned portion of the homestead less the deduction
specified in subsection (4) (3); plus
(b)(ii) the amount of rent-equivalent tax paid on the rented portion of the homestead less the
deduction specified in subsection (4) (3).
(4)(3) Property tax billed and rent-equivalent tax paid are reduced according to the following
schedule:
Household income Amount of reduction
$0 - $999 $0
$1,000 - $1,999 $0
$2,000 - $2,999 the product of .006 times the household income
$3,000 - $3,999 the product of .016 times the household income
$4,000 - $4,999 the product of .024 times the household income
$5,000 - $5,999 the product of .028 times the household income
$6,000 - $6,999 the product of .032 times the household income
$7,000 - $7,999 the product of .035 times the household income
$8,000 - $8,999 the product of .039 times the household income
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$9,000 - $9,999 the product of .042 times the household income
$10,000 - $10,999 the product of .045 times the household income
$11,000 - $11,999 the product of .048 times the household income
$12,000 & and over the product of .050 times the household income
(5)(4) For Except as provided in subsection (7), for a claimant whose household income is $35,000 or
more but less than $45,000 $50,000, the amount of the credit is equal to the credit calculated under this section
multiplied by the decimal equivalent of a percentage figure according to the following table:
Gross household income Percentage of credit allowed
$35,000 - $37,500 40% 60%
$37,501 - More than $37,500 to $40,000 30% 50%
$40,001 - More than $40,000 to $42,500 20% 40%
$42,501 - $44,999More than $42,500 to $45,000 10% 30%
$45,000 or more More than $45,000 to $47,500
More than $47,500 to $49,999
$50,000 or more
0% 20%
10%
0%
(6)(5) The credit granted may not exceed [$1,150] $1,400.
(7)(6) Relief under 15-30-2337 through 15-30-2341 is a credit against the claimant's Montana
individual income tax liability for the claim period. If the amount of the credit exceeds the claimant's liability
under this chapter, the amount of the excess must be refunded to the claimant. The credit may be claimed even
though the claimant has no income taxable under this chapter.
(7) By November 1 of each year, the department shall multiply the gross household income
amounts contained in subsection (4) by the inflation factor for the following tax year and round the cumulative
gross household income amounts to the nearest $100. The resulting gross household income amounts are
effective for the following year. (Bracketed language in subsection (6) is temporarily amended to "$1,000" on
occurrence of contingency for income tax years 2022, 2023, 2024, and 2025 until December 31, 2025--sec. 13,
Ch. 476, L. 2021.)"
Section 3. Repealer. Sections 4, 5, 9 and 10, Chapter 476, Laws of 2021, are repealed.
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Section 4. Effective date. [This act] is effective on passage and approval.
Section 5. Retroactive applicability. [This act] applies retroactively, within the meaning of 1-2-109,
to income tax years beginning after December 31, 2024.
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I hereby certify that the within bill,
HB 831, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
HOUSE BILL NO. 831
INTRODUCED BY G. NIKOLAKAKOS, B. LER, B. MITCHELL, C. SCHOMER, E. TILLEMAN, P. ELVERUM, J.
SECKINGER
AN ACT REVISING THE ELDERLY HOMEOWNER AND RENTER INCOME TAX CREDIT; REVISING THE
DEFINITION OF HOUSEHOLD INCOME; INCREASING THE MAXIMUM CREDIT AMOUNT; REVISING THE
PHASEOUT OF THE CREDIT; PROVIDING AN INFLATIONARY ADJUSTMENT FOR THE INCOME AT WHICH
THE CREDIT PHASES OUT; AMENDING SECTIONS 15-30-2337 AND 15-30-2340, MCA; REPEALING
SECTIONS 4, 5, 9 AND 10, CHAPTER 476, LAWS OF 2021; AND PROVIDING AN IMMEDIATE EFFECTIVE
DATE AND A RETROACTIVE APPLICABILITY DATE.