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HOUSE BILL NO. 358
INTRODUCED BY B. BARNHART
A BILL FOR AN ACT ENTITLED: "AN ACT ALLOWING A CREDIT AGAINST CERTAIN TAXES FOR A PORTION OF WAGES PAID TO CERTAIN EMPLOYEES WHO, AT THE TIME OF INITIAL HIRING, ARE RECEIVING PUBLICLY PROVIDED CASH ASSISTANCE OR VARIOUS OTHER TYPES OF PUBLIC ASSISTANCE; AND PROVIDING A DELAYED EFFECTIVE DATE AND AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
NEW SECTION. Section 1. Tax credit for wages paid to certain employees. (1) Subject to the provisions of subsections (2) through (5), an employer is eligible for a credit against taxes otherwise due under 15-30-103, 15-31-101, 15-31-121, or 15-31-122, as applicable, for a portion of the amount of wages paid to a person who, at the time of being hired, was receiving cash assistance from or was participating in or enrolled in:
(a) the job supplement program described in 53-4-603(2);
(b) the pathways component of the families achieving independence in Montana (FAIM) project described in 53-4-603(4);
(c) the community services program described in 53-4-603(5);
(d) the intensive employment and training program described in 53-4-703;
(e) the Montana medicaid program described in 53-6-101; or
(f) vocational rehabilitation services described in 53-7-108 and provided by or through the department of public health and human services.
(2) The tax credit is available only:
(a) to employers who provide employer-sponsored health insurance and pay at least 50% of each employee's health insurance premium; and
(b) for an employee described in subsections (1)(a) through (1)(e) who is employed by the employer for an average of 20 hours a week or more during the qualifying period.
(3) Subject to the provisions of subsection (4), an employer may claim a credit for wages paid to each eligible employee and based on the state minimum wage (MW) pursuant to Title 39, chapter 3, part 4, as follows:
Credit as a Percentage of Average Hourly Wage for Qualifying Periods
Average For For For
Hourly Months Months Months
Wage 12 through 24 25 through 36 37 through 48
MW Plus $3 an Hour 20% 25% 30%
Greater Than MW Plus $3 an Hour
and Less Than MW Plus $4 an Hour 25% 30% 40%
Greater Than MW Plus $4 an Hour 30% 40% 50%
(4) (a) Except as provided in subsection (4)(b), the credit may not be claimed for an individual employee for a period of more than 36 consecutive months and the total credit claimed for an individual eligible employee may not exceed $4,758 in any tax year.
(b) If, at the time the taxpayer files a return under this chapter, an eligible employee has been employed for fewer than the number of months necessary to qualify for the credit or to qualify at an average hourly wage that would increase the credit to a higher rate, the taxpayer may claim the credit or the credit at the higher rate on the first return filed by the taxpayer to which the credit or higher credit for the eligible employee's wages can apply and may include the credit or the higher credit for wages paid to the eligible employee in a prior tax year provided that the credit has not been previously claimed. A credit claimed under this subsection (4)(b) is not a carryforward.
(5) The credit allowed under this section may not be claimed as a carryback or carryforward.
(6) A credit claimed under this section by a small business corporation, a partnership, or a limited liability company must be attributed as provided in 15-31-162.
NEW SECTION. Section 2. Tax credit for wages paid to certain employees. There is a tax credit for wages paid to certain employees as provided in [section 1] allowed against the taxes imposed by 15-30-103.
NEW SECTION. Section 3. Codification instruction. (1) [Section 1] is intended to be codified as an integral part of Title 15, chapter 31, and the provisions of Title 15, chapter 31, apply to [section 1].
(2) [Section 2] is intended to be codified as an integral part of Title 15, chapter 30, and the provisions of Title 15, chapter 30, apply to [section 2].
NEW SECTION. Section 4. Effective date. [This act] is effective January 1, 2000, and applies to tax years beginning after December 31, 1999.
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Latest Version of HB 358 (HB0358.01)
Processed for the Web on January 22, 1999 (4:32PM)
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