Montana SB538 revises income tax deductions for certain trade or business expenses and allows a qualified business income tax deduction.

Montana SB538 revises income tax deductions for certain trade or business expenses, allowing a qualified business income tax deduction based on the amount claimed under Section 199A of the Internal Revenue Code. The bill amends Section 15-30-2120, MCA, to adjust federal taxable income to determine Montana taxable income. It specifies that certain contributions and withdrawals are subject to the recapture tax. The bill is effective upon passage and applies retroactively to tax years beginning after December 31, 2024.

Montana SB538 revises income tax deductions for certain trade or business expenses and allows a qualified business income tax deduction.

Montana SB538 revises income tax deductions for certain trade or business expenses, allowing a qualified business income tax deduction based on the amount claimed under Section 199A of the Internal Revenue Code. The bill amends Section 15-30-2120, MCA, to adjust federal taxable income to determine Montana taxable income. It specifies that certain contributions and withdrawals are subject to the recapture tax. The bill is effective upon passage and applies retroactively to tax years beginning after December 31, 2024.