MT SB546

Creates a new income-based tax credit for Montana individual taxpayers equal to 4.7% of taxable income, with income thresholds varying by filing status: $2,000 for joint filers/surviving spouses, $1,500 for head of household, and $1,000 for single filers or married filing separately

Credit phases out as income increases, reducing by 0.094% for each additional income increment above the threshold until it reaches zero

Excludes individuals claimed as dependents and trusts from eligibility; credit cannot exceed tax liability and cannot be carried forward or back

Requires the Department of Revenue to publish available credit amounts based on Montana taxable income

Effective January 1, 2026, applying to tax years beginning after December 31, 2025; adds this credit to the list of tax credits subject to interim committee review starting in the biennium commencing July 1, 2021