MT HB845

Increases the Montana state income tax deduction for contributions to family education savings accounts (529 plans) from $3,000 to $4,500 per individual taxpayer

Raises the maximum deduction for married couples filing jointly from $3,000 to $9,000 for their combined contributions

Establishes annual inflationary adjustments to the deduction limits beginning after tax year 2025, based on changes in the consumer price index and rounded to the nearest $100

Applies retroactively to tax years beginning after December 31, 2024, with an immediate effective date upon passage and approval

Eligible accounts include Montana Family Education Savings Program accounts and qualified tuition programs established by other states under IRC Section 529