MT HB904

Eliminates preferential capital gains tax rates (3.0% and 4.1%) for taxpayers with Montana taxable income exceeding $1 million for joint filers/surviving spouses or $500,000 for all other filers

Income above these thresholds would be taxed at standard income tax rates of 4.7% on the first bracket and 5.9% on income above bracket thresholds

Redefines "net long-term capital gains" to exclude income from any sources that exceeds the $1 million/$500,000 thresholds

Effective January 1, 2026, applying to tax years beginning after December 31, 2025

Amends Section 15-30-2103, MCA, which governs Montana's income tax rates and capital gains treatment