2023 Montana Legislative Roundup – Newly Enacted Montana Adoption Tax Credit – Tax News You Can Use

October 10, 2023

The 68th Montana Legislative made several changes to Montana’s tax laws. To help you sort out the changes, we are starting a series explaining the new laws called the 2023 Legislative Roundup.

This article is a part of our 2023 Legislative Roundup series.

Montana adoptive parents may be eligible for a newly enacted tax credit. House Bill 225 created a refundable tax credit for Montana resident taxpayers who adopt an eligible child on or after July 1, 2022.

The credit is equal to either $7,500 for the adoption of an eligible child who was in the Montana foster care system, or $5,000 if the child was not in the Montana foster care system. Because this tax credit is refundable, taxpayers can receive a refund of any credit in excess of their tax liability.

Taxpayers that completed an adoption in Tax Year 2022 after July 1, 2022, may claim the credit on their 2023 income tax return.

Learn more here.