MT SB544

Allows taxpayers to elect a transition adjustment for Montana net operating loss carryovers that differed from federal carryovers as of December 31, 2023, addressing losses not accounted for in the 2021 income tax simplification legislation (Senate Bill 399)

Taxpayers must make the election on their 2024 income tax return filed by October 15, 2025, with no extensions permitted; missing this deadline permanently forfeits the adjustment option

Carryforward adjustments must be applied to reduce Montana taxable income to $0, continuing for up to 7 years, and must be used after any net operating losses accruing after December 31, 2023

Department of Revenue is authorized to prescribe forms and adopt rules to implement the transition adjustment

Effective immediately upon passage with retroactive application to tax years beginning after December 31, 2023