The following credits are currently supported for the Montana Tax Return. Please review the credit information to determine if you qualify for the credit.
Elderly Homeowner/Renter Credit
This is a property tax relief program that provides a refundable tax credit of up to $1,150. To qualify, the taxpayer must:
- be age 62 or older,
- resided in Montana for more than 9 months during the tax year,
- occupied or owned a home in Montana for a total of 6 months during the year, and
- gross income was less than $45,000 total for entire household.
Credit For Taxes Paid To Another State
If you are a full-year resident and you paid income tax to another state or country on income that is also taxable to Montana, you may be entitled to a credit against your Montana income tax liability.
Wages for work performed in North Dakota – If you worked in North Dakota while a resident of Montana, the wages you receive for this work are not taxable by North Dakota under the income tax reciprocity agreement between the two states. Please review our Knowledgebase Article for complete filing instructions for the resident and nonresident returns.
Qualified Endowment Credit (Line 4)
You have the ability to claim a credit toward you tax liability for contributions you made to a qualified Montana endowment held by a corporation in Montana or an entity that is tax exempt under USC 501(c) (3) or a trust or bank in Montana that is also tax-exempt. The credit is 40% of the present value of the planned gift made during the year. The maximum credit amount you can take is $10,000 per taxpayer.
Carryforward Credits from repealed tax credits
Starting with tax year 2022, the following credits have been repealed, however you may still claims any remaining carryforward amounts.
- Biodiesel Blending and Storage Credit
- Increasing Research Activities Credit
- Geothermal Systems Credit
- Alternative Energy Systems Credit
- Alternative Energy Production Credit
- Dependent Care Assistance Credit
- Adoption Credit
- Mineral and Coal Exploration Credit
Adoption Credit (Line 27)
Starting with tax year 2022 this credit has been repealed, you can however, still carry forward any unused credit for up to five years.
College Contribution Credit (Line 4)
Starting with tax year 2022 this credit has been repealed.
Elderly Care Credit (Line 9)
Starting with tax year 2022 this credit has been repealed.
Unlocking Public Lands Credit (Line 5)
If you are a landowner and have entered into a contractual agreement with Montana Department of Fish, Wildlife and Parks which provides public access and recreation, you may receive a refundable annual tax credit of $750 per agreement, with the maximum credit amount allowed being $3,000 for the year.
Geothermal System Credit ENRGA (Line 17)
As of tax year 2022, this credit has been repealed. You can still carry forward any unused credit for up to 7 years.
*Alternative Energy System Credit ENRGB (Lines 18 and 19)
- Non-fossil form of energy: As of tax year 2022 this credit has been repealed. Any balance not used can be carried forward up to 4 years.
- Low emission wood or biomass combustion: As of tax year 2022 this credit has been repealed. You can carry forward any credit not used for up to 4 years.
Energy Conservation Installation Credit ENRGC (Line 6)
As of tax year 2022 this credit has been repealed.
Student Scholarship Credit (Line 9)
You can claim a credit against your tax liability for contributions you made to a student scholarship organization. The credit is equal to the donation up to $200,000. Any excess credit may be carried forward for up to three years. You are not allowed to take this credit if the contribution was already deducted for the same amount as a charitable contribution. The credit must be preapproved before a taxpayer can claim it. The taxpayer will also receive a donation receipt which must be attached to their return if claiming the credit.
Innovative Educational Program Credit (Line 8)
You can claim a credit against your tax liability for the donations you made to an Innovation education program. The credit is equal to the donation up to $200,000. Any excess credit may be carried forward for up to three years. The credit must be preapproved before a taxpayer can claim it. The taxpayer will also receive a donation receipt which must be attached to their return if claiming the credit.
Apprenticeship Credit (Line 6)
Available to Montana employers who are registered as a Montana Apprenticeship Program sponsor for any new position hired for on-the-job training. You must submit an application to the Department of Labor to be able to claim the credit. The credit must be claimed on the tax year in the year it is approved. The credit equals either $750 for each new registered apprentice or $1500 for each new registered apprentice who is a veteran.
Media Credit (Line 13)
You may claim the Media Credit if you received a validation letter from the Department of Revenue with your approved Media Credit amount, or a Form MEDIA CLAIM with your Montana Schedule K-1 from a pass-through entity of trust or estate. You may also claim the Media Credit if you received the credit via a registered transfer. The credit may be carried forward for up to five years from the date of issuance. The Media Credit is a nonrefundable tax credit.
Contractors Gross Receipt Credit (Line 10)
You can claim the Contractors Gross Receipt Credit for the Public Contractor's Gross Receipts Tax that your business paid, or has been withheld and remitted on your behalf, during the tax year. Any remaining credit balance can be carried forward for up to five years. The Contractors Gross Receipt Credit is a nonrefundable tax credit.
Trades Education and Training Credit (Line 7)
The Trades Education and Training Credit can be claimed for the expenses you incurred during the tax year while providing education or training in a trade profession. The credit is equal to 50% of the expenses incurred, not to exceed $2,000 per employee and $25,000 total. This credit is claimed in the year the cost is incurred.
- State Section
For more information regarding these Montana credits, please click here.