MT SB321

Creates a refundable child tax credit of $1,200 per qualifying child age 2 or younger for resident taxpayers eligible for the federal child tax credit, with income phase-outs starting at $40,000 (single) or $80,000 (married filing jointly)

Establishes a $1,000 refundable tax credit for child-care workers employed at least 6 months and working minimum 20 hours per week in licensed or registered day-care facilities, Head Start programs, or tribal child care programs

Provides employers a refundable tax credit up to $2,500 per employee for dependent care assistance provided to workers, applicable to both individual income tax and corporate tax filers including S corporations and partnerships

All three credits will be annually adjusted for inflation based on the consumer price index, using June 2025 as the baseline

Applies to tax years beginning after December 31, 2025, and adds the new credits to the revenue interim committee's review schedule for the biennium commencing July 1, 2027