This credit was repealed by the 2021 Montana State Legislature. You may not claim this credit after Tax Year 2021. You may still carry forward any remaining tax credit until the carryforward period expires.
The Empowerment Zone Credit is for businesses in empowerment zones.
Eligibility
An employer carrying on a business, trade, occupation or profession in Montana, within a qualified empowerment zone, and less than 10% of the business is from retail sales of tangible personal property not manufactured on site.
Qualifying
To qualify, a business must increase employment within the empowerment zone from employees who
- Work at least 1,750 hours per year in permanent employment intended to last at least 3 years
- Were not employed in the business within the preceding 12 months
- At least 35% are residents of the county at the time of their employment
- Are provided a health benefit plan of which at least 50% of the premium is paid by the employer
- Are paid for job duties performed at the location inside the empowerment zone
Benefit
For each qualified employee, you may claim:
- $500 for the first year of employment,
- $1,000 for the second year of employment, and
- $1,500 for the third year of employment
This benefit can be applied to both income and insurance premium tax.
Carry Over
This credit can be carried forward seven years and carried backward three.
Related Laws
15-31-134, 7-21-3710, and 15-30-2356, MCA.