MT HB537

Creates a refundable "birth day tax credit" of up to $3,000 for Montana resident taxpayers in the year a child is born, calculated based on the lesser of $3,000 or the total of state income taxes, federal income taxes, and FICA contributions due

Credit phases out at $150 per $1,000 of income above $120,000 for married filing jointly or $60,000 for all other filing statuses

Maximum credit is limited to $1,500 when married parents file separately or when unmarried parents share custody; custodial parents of children with non-shared custody may claim the full credit

Taxpayers must report the child's name, birth location, and parents' names from the birth certificate to claim the credit

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