MT HB209

Creates an income tax credit for nonpublic school education expenses including tuition, textbooks, extracurricular activities, educational therapies, computer hardware, and standardized testing fees for private school and homeschool students

Credit amount equals the lesser of actual expenses paid or 44.7% of the applicable per-ANB (Average Number Belonging) maximum rate established in state education funding formulas

Qualifying students must be dependents under federal tax law who receive full-time academic instruction (at least one semester) in a nonpublic education setting that meets Montana's compulsory attendance requirements

Credit cannot exceed the taxpayer's tax liability and cannot be carried forward or back; only one taxpayer may claim the credit per student per year, with special provisions for divorced or separated parents

Applies to tax years beginning after December 31, 2025, and adds this credit to the list of tax credits subject to periodic review by the revenue interim committee starting in the biennium commencing July 1, 2021