MontanaMontana draft seeks to allow deductions for qualifying business income
The draft aims to let Montana taxpayers use their federal business income deduction for state taxes, but whether it allows this remains unclear.
What it does
The draft seeks to allow a Montana business income deduction based on federal claims for tax years beginning on or after January 1, 2027. Whether taxpayers could claim it remains unclear.
Argument forIf the intended deduction is allowed, taxpayers who claim the federal deduction could pay less in Montana income taxes.
Argument againstIf allowed, tying the state deduction to federal claims could leave taxpayers who cannot claim the federal deduction without this relief.
More detail
The draft seeks to allow a Montana tax deduction based on the federal deduction for qualifying business income. It concerns Montana taxpayers who claim that federal deduction. Whether this deduction would reduce income taxed by Montana remains unclear. The act would take effect on passage and approval and apply retroactively to tax years beginning after December 31, 2026.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Oct 30(LC) Draft in AssemblyLatest
- Oct 28(LC) Draft in Final Drafter Review
- Oct 23(LC) Draft in Input/Proofing
- Oct 21(LC) Draft in Edit
- Oct 20(LC) Draft in Legal Review
- Sep 16(LC) Drafter AssignedIntroduced
Taxes & Budget