2019 Montana Legislature

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HOUSE BILL NO. 706

INTRODUCED BY T. WINTER

 

A BILL FOR AN ACT ENTITLED: "AN ACT REVISING INDIVIDUAL INCOME TAX CREDIT LAWS; PROVIDING FOR THE MONTANA EDUCATIONAL OPPORTUNITY TAX CREDIT FOR STUDENT LOAN PAYMENTS FOR DEBT INCURRED WHILE ATTENDING A MONTANA COLLEGE OR UNIVERSITY; REVISING THE CAPITAL GAINS TAX CREDIT; AMENDING SECTION 15-30-2301, MCA; AND PROVIDING AN APPLICABILITY DATE."

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

 

     NEW SECTION.  Section 1.  Montana educational opportunity tax credit. (1) The Montana educational opportunity tax credit is a credit against the tax imposed by 15-30-2103 for student loan payments made by a taxpayer.

     (2) To qualify for the credit, the taxpayer must have incurred the student loan debt while attending a unit of the Montana university system, a Montana community college, or a Montana tribal college and the taxpayer must have obtained a degree from a unit of the Montana university system, a Montana community college, or a Montana tribal college.

     (3) (a) Subject to subsections (3)(b) and (3)(c), the credit is equal to the amount of student loan interest deducted on the taxpayer's tax return. The taxpayer may claim the student loan interest deduction and the credit provided for in this section.

     (b) For a taxpayer whose adjusted gross income is $30,000 or more but less than $40,000, the amount of the credit is equal to the credit calculated under subsection (3)(a) multiplied by the percentage provided in the following table:

     Adjusted gross income          Percentage of credit allowed

     $30,000 - $32,500               80%

     $32,501 - $35,000               60%

     $35,001 - $37,500               40%

     $37,501 - $39,999               20%

     $40,000 or more               0%

     (c) A taxpayer with adjusted gross income of $40,000 or more may not claim the credit.

     (4) The credit must be refunded if it exceeds the taxpayer's tax liability.

 

     Section 2.  Section 15-30-2301, MCA, is amended to read:

     "15-30-2301.  Capital gains credit. An individual taxpayer is allowed a credit against the taxes imposed by 15-30-2103 in an amount equal to 1% 1.9% of the taxpayer's net capital gains for tax years 2005 and 2006 and 2% of the taxpayer's net capital gains for tax years beginning after 2006, as shown on the taxpayer's individual income tax return filed pursuant to 15-30-2602. The credit allowed under this section may not exceed the taxpayer's income tax liability."

 

     NEW SECTION.  Section 3.  Codification instruction. [Section 1] is intended to be codified as an integral part of Title 15, chapter 30, part 23, and the provisions of Title 15, chapter 30, part 23, apply to [section 1].

 

     NEW SECTION.  Section 4.  Applicability. [This act] applies to income tax years beginning after December 31, 2019.

- END -

 


Latest Version of HB 706 (HB0706.01)
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