MT SB225

Creates a new Montana income tax credit for renters with gross household income under $45,000, equal to the lesser of rent-equivalent property tax (15% of gross rent) exceeding 4% of household income or $500

Phases out the credit for incomes between $35,000-$45,000: 40% credit at $35,000-$37,500, decreasing to 10% at $42,501-$44,999, and 0% at $45,000 or more

Credit is fully refundable, meaning claimants receive the excess even if they owe no income tax

Claimants cannot receive both the new renter's credit and the existing residential property tax credit for the elderly

Applies retroactively to tax years beginning after December 31, 2024, and terminates December 31, 2028