Montana HB942 establishes a child income tax credit for qualifying children up to age 5.

Montana HB942 introduces a child income tax credit of $1,000 per qualifying child, applicable to income tax years starting after December 31, 2025. To qualify, a resident taxpayer must have earned income and a valid social security number for each child. The credit is adjusted annually for inflation and is subject to review by the revenue interim committee. The credit is reduced for taxpayers with federal adjusted gross income exceeding specified thresholds.

Montana HB942 establishes a child income tax credit for qualifying children up to age 5.

Montana HB942 introduces a child income tax credit of $1,000 per qualifying child, applicable to income tax years starting after December 31, 2025. To qualify, a resident taxpayer must have earned income and a valid social security number for each child. The credit is adjusted annually for inflation and is subject to review by the revenue interim committee. The credit is reduced for taxpayers with federal adjusted gross income exceeding specified thresholds.