Montana 2025 Regular Session

Montana House Bill HB845

Introduced
3/19/25  
Refer
3/20/25  
Engrossed
4/3/25  
Refer
4/3/25  
Enrolled
4/22/25  

Caption

Increase IRC 529 education savings income tax deduction

Impact

The impact of HB 845 is expected to make higher education more accessible to Montana families by alleviating some of the financial burdens associated with education costs. By expanding the tax deduction, the state anticipates that more families will opt to utilize education savings accounts, which could lead to a culture of saving for education and potentially increase the overall educational attainment within the state. The retroactive applicability of the bill allows for immediate benefit to residents prior to the next tax year.

Summary

House Bill 845 aims to increase the income tax deduction for contributions made to family education savings accounts in the state of Montana. The bill also sets forth provisions for annual inflation-based adjustments to the maximum allowable deduction amount, ensuring that the benefit remains relevant in the face of rising costs. By increasing the deduction, the bill encourages families to save for education through these specialized accounts, which can be used for qualified education expenses defined under the Internal Revenue Code.

Sentiment

The sentiment surrounding the bill appears to be predominantly positive, with supporters arguing that it empowers families to invest in the future of their children through education. Many stakeholders see the increased deduction as a step towards enhancing educational opportunities and supporting the next generation. Critics, however, may voice concerns about the fiscal implications of increasing deductions on state revenue, questioning whether it may lead to budget adjustments or impact funding for other state programs.

Contention

While the overall reception of HB 845 is favorable among proponents of education savings, there are notable points of contention regarding the ongoing fiscal health of the state's budget. Some lawmakers may argue against the increase in deductions based on potential revenue loss, questioning whether this bill is the best route for improving educational funding. This debate represents a broader discussion on how best to manage state resources while promoting educational development.

Companion Bills

No companion bills found.

Previously Filed As

MT HB4747

Individual income tax: deductions; deduction for contributions made to any 529 education savings plan; provide for. Amends sec. 30 of 1967 PA 281 (MCL 206.30).

MT SB538

Provide income tax deduction for qualified business income

MT HB93

Standard Income Tax Deduction Increase

MT HB389

Income tax, optional standard deduction increased, adjusted gross income range allowed for maximum dependent exemption increased

MT SB157

Provide income tax deduction up to 150% for charitable donations

MT SB1279

Modifies an income tax deduction for contributions to 529 savings accounts

MT SB1440

Modifies an income tax deduction for contributions to 529 savings accounts

MT HB127

Establishes an individual income tax deduction for contributions made into certain deductible savings accounts (EG DECREASE GF RV See Note)

MT A4434

Increases gross income tax deduction available to veterans from $6,000 to $12,000.

MT S3273

Increases gross income tax deduction available to veterans from $6,000 to $12,000.

Similar Bills

No similar bills found.