MT HB895

50% of income from selling a newly constructed single-family residence or duplex can be excluded from Montana state income tax

The exclusion applies only when the sale price is less than 85% of the county median residential value based on the prior periodic reappraisal

The exclusion is disallowed if the taxpayer receives additional compensation (cash or other forms) that, combined with the sale price, exceeds 85% of the county median residential value

The Montana Department of Revenue must calculate county median residential values every 2 years as part of property reappraisals

Applies to both individual income tax (Section 15-30-2120) and corporate income tax (Section 15-31-114), effective for tax years beginning after December 31, 2025