This article was first sent as part of the Tax News You Can Use Newsletter
2021 Legislative Roundup
The 67th Montana Legislature made several changes to Montana’s tax laws. To help you sort out the changes, we have created a series explaining the new laws called the 2021 Legislative Roundup.
This article is a part of our 2021 Legislative Roundup series.
Senate Bill 399, signed into law during the 2021 Legislature, made big changes to Montana’s tax system. Most of these changes become effective in Tax Year 2024. However, beginning next year, the new law repeals fifteen Montana tax credits. These credits may no longer be claimed after Tax Year 2021. Taxpayers’ last chance to claim these credits will be on their 2021 tax return.
- Adoption Credit
- Alternative Energy Production Credit
- Alternative Energy System Credit
- Alternative Fuel Credit
- Biodiesel and Blending Credit
- College Contribution Credit
- Dependent Care Assistance and Referral Credit
- Elderly Care Credit
- Emergency Lodging Credit
- Empowerment Zone Credit
- Energy Conservation Installation Deduction
- Geothermal System Credit
- Health Insurance for Uninsured Montanans Credit
- Mineral and Coal Exploration Incentive Credit
- Oilseed Crush Facility Credit
Some of the repealed credits have carryforward provisions, which allow a taxpayer to carry forward a credit if it is not fully used in the year it was claimed. Taxpayers may still carry forward any remaining amount of that particular credit until its carryforward period expires.
All qualifying items for the Alternative Energy System Credit, Geothermal System Credit, and Energy Conservation Installation Credit must be purchased and installed in 2021 to be eligible for that tax credit.
Specific details about each tax credit can be found in the Form 2 Instructions, Form PTE Instructions, Form CIT Instructions, or in the credit’s form instructions.