The Montana Department of Revenue reported four income tax credit updates from the 2023 Montana Legislative Session.
Updates cover a credit increase on the Earned Income Tax credit, credit cap increase on the Qualified Education Contribution Credit, credit increase on the Qualified Endowment Credit, and expansion of eligible trade employment areas for the Trades Education and Training Credit.
For the Earned Income Tax Credit, the credit is now 10% of the federal credit, up from 3%. The credit remains refundable, as do claim qualifiers.
The cap on the Qualified Education Contribution Credit has been raised to $5 million for TY 2024. The credit amount, up to $200,000, will not change and remains non-refundable.
Nine more types of qualified trades employment have been added for the 2023 tax year Trades Education and Training Credit. This credit covers 50% of the education cost up to $2000 per employee up to a total of $25,000. Among the new eligible sectors are extraction related jobs, IT related professions, and medical and dental trainees.
In Tax Year 2024, Qualifed Endowment Credits will increase, to be equal to 40% of the planned gift value up to $15,000. Outright gifts from businesses and estates are eligible for a 20% credit up to $15,000.
More infomation, visit the Montana Department of Revenue website at mtrevenue.gov.
