MontanaMontana taxpayers could claim credits for children and child care
Montana families, qualifying child-care workers, and employers could claim refundable tax credits for children or dependent-care help for tax years beginning after 2025.
What it does
Eligible Montana taxpayers could claim a starting credit of $1,200 for each child age 5 or younger. The state could refund any amount that exceeds the taxpayer’s tax bill.
Eligible child-care workers could claim a refundable $1,600 state tax credit if they meet the work-hour and employment-length rules. The amount would be adjusted for inflation.
Employers could claim a credit for dependent-care help they provide to employees, up to $5,000 per employee. Salary-reduction payments and care provided outside Montana would not qualify.
Argument forEligible families could receive refundable help for young children, even when they owe little or no Montana income tax.
Argument againstSome families could receive less or miss out if income and identification rules disqualify them, while workers must meet strict hours and employment-length requirements.
More detail
A resident taxpayer who qualifies for the federal child tax credit could claim a refundable Montana credit for each qualifying child. A qualifying child must be the taxpayer’s child and age 5 or younger at the end of the calendar year in which the tax year begins. The taxpayer must have earned income, less than $10,300 in investment income, and a valid Social Security number for each child claimed. The $1,200 credit is reduced by $50 for each $1,000 of federal adjusted gross income above $40,000 for single or head-of-household filers, or $80,000 for married couples filing jointly; these amounts are adjusted for inflation. The credit would apply to income tax years beginning after December 31, 2025.
A resident taxpayer could claim a refundable $1,600 tax credit for qualifying child-care work. The worker must be listed in the state’s child-care system and own or work at a licensed or registered child-care setting, or work in a specified early-childhood, school-age, director, or owner role. The worker must be employed for at least 6 months of the tax year and work at least 20 hours a week. The credit amount would be adjusted for inflation each year. The credit would apply to income tax years beginning after December 31, 2025.
An employer could claim a tax credit for dependent-care assistance actually provided to or for an employee. The employer must carry on a business, trade, occupation, or profession in Montana, and the assistance must be provided to or for an employee. The credit would cover up to $5,000 per employee. Payments through salary reductions or for services performed outside Montana would not qualify. For care at an employer’s onsite facility, the credit would be based on the dependent’s use and the value of services. The employer must reduce any related deduction by the credit amount. The credit would apply to income tax years beginning after December 31, 2025.
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Where it stands
- Introduced
- Died
Looking ahead
No hearings or votes scheduled.
History
- 2025
- May 23(S) Died in ProcessDied
- Apr 25(H) Motion
- Vote recorded Take from APH to Third reading Today - Schubert. Result: fail.Lower
- Apr 23(H) Tabled in Committee - (H) AppropriationsMinor
- Vote recorded to_table. Result: pass.Lower
- Apr 22(H) Hearing - (H) Appropriations
- Apr 18(H) Hearing - (H) Appropriations
- Vote recorded Do Concur As Amended. Result: pass.Lower
- Vote recorded AMD-SB0321.002.002 Nikolakakos M DO PASS. Result: pass.Lower
- Apr 18(H) Rereferred to Committee - (H) AppropriationsMinor
- Apr 18(H) 2nd ReadingMinor
- Apr 18(H) 2nd Reading Motion to AmendMinor
- Apr 18(H) Scheduled for 2nd ReadingMinor
- Apr 16(H) Committee Report - (H) Taxation
- Vote recorded be_concurred_in. Result: pass.Lower
- Apr 16(H) Committee Executive Action - (H) Taxation
- Apr 12(S) Revised Fiscal Note Printed
- Apr 11(S) Fiscal Note Unsigned
- Apr 10(S) Revised Fiscal Note ReceivedMinor
- Apr 9(H) Hearing - (H) Taxation
- Apr 7(H) 1st Reading
- Apr 7(S) Revised Fiscal Note Requested
- Apr 7(H) Referred to Committee - (H) TaxationMinor
- Apr 5(S) Transmitted to House
- Vote recorded Do Pass. Result: pass.Upper
- Apr 5(S) 3rd Reading
- Apr 5(S) Scheduled for 3rd ReadingMinor
- Apr 4(S) Committee Report - (S) Finance and Claims
- Vote recorded do_pass. Result: pass.Upper
- Apr 4(S) Committee Executive Action - (S) Finance and Claims
- Apr 3(S) Hearing - (S) Finance and Claims
- Vote recorded Do Pass. Result: pass.Upper
- Apr 3(S) Rereferred to Committee - (S) Finance and ClaimsMinor
- Apr 3(S) 2nd ReadingMinor
- Apr 3(S) Scheduled for 2nd ReadingMinor
- Apr 1(S) Committee Report - (S) Taxation
- Vote recorded do_pass_as_amended. Result: pass.Upper
- Apr 1(S) Committee Executive Action - (S) Taxation
- Mar 12(S) Hearing - (S) Taxation
- Feb 28(S) Referred to Committee - (S) TaxationMinor
- Feb 24(S) Fiscal Note Printed
- Feb 22(S) Fiscal Note Signed
- Feb 20(S) Fiscal Note ReceivedMinor
- Feb 14(S) 1st Reading
- Feb 14(S) Fiscal Note Requested
- Feb 13(S) Introduced
- Feb 6(LC) Draft Ready for Delivery
- Feb 5(LC) Draft in Assembly
- Feb 5(LC) Draft in Final Drafter Review
- Feb 5(LC) Draft in Input/Proofing
- Feb 4(LC) Draft in Edit
- Feb 4(LC) Draft in Legal Review
- Jan 17(LC) Draft Taken Off Hold
- 2024
- Oct 4(LC) Draft On Hold
- Oct 4(LC) Drafter AssignedIntroduced
Taxes & BudgetEconomy & Jobs