Montana SB546 revises income tax liability calculations and establishes an income-based tax credit.

Montana SB546 revises the calculation of income tax liabilities for certain taxpayers and establishes an income-based tax credit subject to a complete phaseout when income increases. The credit is calculated as 4.7% of Montana taxable income, subject to a phaseout based on income levels. The bill also mandates reviews of various tax credits by the revenue interim committee, assessing their impact on taxpayer decisions, economic benefits, and other criteria. The changes apply to income tax years beginning after December 31, 2025, with an effective date of January 1, 2026.

Montana SB546 revises income tax liability calculations and establishes an income-based tax credit.

Montana SB546 revises the calculation of income tax liabilities for certain taxpayers and establishes an income-based tax credit subject to a complete phaseout when income increases. The credit is calculated as 4.7% of Montana taxable income, subject to a phaseout based on income levels. The bill also mandates reviews of various tax credits by the revenue interim committee, assessing their impact on taxpayer decisions, economic benefits, and other criteria. The changes apply to income tax years beginning after December 31, 2025, with an effective date of January 1, 2026.