Provide income tax credit for certain long-time residents

****
69th Legislature 2025 HB 839.1
- 1 - Authorized Print Version – HB 839
1 HOUSE BILL NO. 839
2 INTRODUCED BY L. SCHUBERT, K. LOVE, T. SHARP, T. MILLETT, B. MITCHELL, D. EMRICH, E. BYRNE,
3 C. COCHRAN, N. DURAM
4
5 A BILL FOR AN ACT ENTITLED: “AN ACT PROVIDING AN INCOME TAX CREDIT FOR CERTAIN LONG-
6 TIME RESIDENTS OF THE STATE; PROVIDING AN INCOME LIMIT; PROVIDING A DEFINITION;
7 AMENDING SECTION 15-30-2303, MCA; AND PROVIDING AN APPLICABILITY DATE.”
8
9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
10
11 NEW SECTION. Section 1. Montana 10-year resident credit. (1) A taxpayer who has resided in the
12 state for the prior 10 years and who has income of less than $100,000 is allowed a credit against the tax
13 imposed by 15-30-2103.
14 (2) A taxpayer is considered to have resided in Montana each year that the taxpayer resided in the
15 state for at least 7 months of the year.
16 (3) The amount of the credit allowed under this section is $500.
17 (4) The credit may not be refunded and may not be carried to another tax year.
18 (5) Pursuant to 5-4-104, the legislature finds that the purpose of the tax credit provided for in this
19 section is to reduce the tax burden of long-time Montana residents.
20 (6) For the purposes of this section, "income" has the same meaning as provided in 15-30-2337.
21
22Section 2. Section 15-30-2303, MCA, is amended to read:
23 "15-30-2303. Tax credits subject to review by interim committee. (1) The following tax credits
24 must be reviewed during the biennium commencing July 1, 2021, and during each biennium commencing 8
25 years thereafter:
26 (a) the credit for donations to innovative educational programs provided for in 15-30-2334, 15-30-
27 3110, and 15-31-158;
28 (b) the credit for donations to a student scholarship organization provided for in 15-30-2335, 15-
****
69th Legislature 2025 HB 839.1
- 2 - Authorized Print Version – HB 839
1 30-3111, and 15-31-159; and
2 (c) the adoption tax credit provided for in 15-30-2321.
3 (2) The following tax credits must be reviewed during the biennium commencing July 1, 2023, and
4 during each biennium commencing 8 years thereafter:
5 (a) the credit for infrastructure use fees provided for in 17-6-316;
6 (b) the credit for contributions to a qualified endowment provided for in 15-30-2327 through 15-30-
7 2329, 15-31-161, and 15-31-162;
8 (c) the credit for property to recycle or manufacture using recycled material provided for in Title 15,
9 chapter 32, part 6; and
10 (d) the credit for preservation of historic buildings provided for in 15-30-2342 and 15-31-151; and
11 (e) the Montana 10-year resident credit provided for in [section 1].
12 (3) The following tax credits must be reviewed during the biennium commencing July 1, 2025, and
13 during each biennium commencing 8 years thereafter:
14 (a) the residential property tax credit for the elderly provided for in 15-30-2337 through 15-30-
15 2341;
16 (b) the credit for unlocking state lands provided for in 15-30-2380;
17 (c) the job growth incentive tax credit provided for in 15-30-2361 and 15-31-175; and
18 (d) the credit for trades education and training provided for in 15-30-2359 and 15-31-174.
19 (4) The following tax credits must be reviewed during the biennium commencing July 1, 2027, and
20 during each biennium commencing 8 years thereafter:
21 (a) the credit for hiring a registered apprentice or veteran apprentice provided for in 15-30-2357
22 and 15-31-173;
23 (b) the earned income tax credit provided for in 15-30-2318;
24 (c) the media production and postproduction credits provided for in 15-31-1007 and 15-31-1009;
25 and
26 (d) the credit for contractor's gross receipts provided for in 15-50-207.
27 (5) The revenue interim committee shall review the tax credits scheduled for review and make
28 recommendations in accordance with 5-11-210 at the conclusion of the full review to the legislature about
****
69th Legislature 2025 HB 839.1
- 3 - Authorized Print Version – HB 839
1 whether to eliminate or revise the credits. The committee shall also review any tax credit with an expiration date
2 or termination date that is not listed in this section in the biennium before the credit is scheduled to expire or
3 terminate.
4 (6) The revenue interim committee shall review the credits using the following criteria:
5 (a) whether the credit changes taxpayer decisions, including whether the credit rewards decisions
6 that may have been made regardless of the existence of the tax credit;
7 (b) to what extent the credit benefits some taxpayers at the expense of other taxpayers;
8 (c) whether the credit has out-of-state beneficiaries;
9 (d) the timing of costs and benefits of the credit and how long the credit is effective;
10 (e) any adverse impacts of the credit or its elimination and whether the benefits of continuance or
11 elimination outweigh adverse impacts; and
12 (f) the extent to which benefits of the credit affect the larger economy. (Subsection (3)(c)
13 terminates December 31, 2028--sec. 4, Ch. 391, L. 2023; subsection (3)(d) terminates December 31, 2028--
14 sec. 2, Ch. 576, L. 2023; subsection (1)(c) terminates December 31, 2031--sec. 6, Ch. 493, L. 2023.)"
15
16 NEW SECTION. Section 3. Codification instruction. [Section 1] is intended to be codified as an
17 integral part of Title 15, chapter 30, and the provisions of Title 15, chapter 30, apply to [section 1].
18
19 NEW SECTION. Section 4. Applicability. [This act] applies to income tax years beginning after
20 December 31, 2025.
21 - END -