Montana State Tax Credits

More ways to save your hard-earned money from the tax man!

Montana has some great State Tax Credits for you....

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap

 
Montana

Montana Job Growth Incentive Tax Credit (JGTC)

Overview:
Montana’s JGTC rewards businesses in key industries that create high-paying jobs. The credit equals 50% of employer-paid payroll taxes for new employees hired as part of a qualifying economic development project in Montana.

Who It’s For:
Montana businesses in industries like manufacturing, natural resources, construction, and outdoor recreation that have added at least 5–10 new high-wage jobs since 2021 and are investing in state-based growth.

Four Key Highlights:

  1. 50% Payroll Tax Credit
    Businesses can claim half of the payroll taxes paid on qualifying employees earning $50,000+ annually.

  2. Targeted at Growing Industries
    Must operate in sectors such as construction, agriculture, mining, transportation, or outdoor recreation.

  3. Minimum New Hire Requirements
    At least 10 new hires in counties with 20,000+ residents or 5 hires in smaller counties—each working 6+ months.

  4. Cannot Stack with Apprenticeship Credit
    Businesses must choose between JGTC and the Apprenticeship Tax Credit for the same tax year.

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Montana Apprenticeship & Trades Education and Training Tax Credits

Overview:
Montana offers two separate tax credits for employers investing in workforce development: the Apprenticeship Tax Credit supports hiring and training registered apprentices, while the Trades Education and Training Credit offsets expenses for educating employees in skilled trades.

Who It’s For:
Montana employers in trade industries like construction, plumbing, mechanics, trucking, or electrical work who invest in employee development through apprenticeships or third-party training.

Four Key Highlights:

  1. $750–$1,500 per New Apprentice
    Employers earn $750 per apprentice and $1,500 for veteran apprentices who complete six months or their probationary period.

  2. 50% Credit on Trade Training Costs
    Receive half the cost (up to $2,000/employee and $25,000/company) for approved education/training in qualified trade fields.

  3. Apprentices Must Be Montana-Registered
    Only apprentices registered with the Montana Department of Labor & Industry are eligible.

  4. No Double-Dipping with JGTC
    Businesses must choose either the Apprenticeship Tax Credit or the Job Growth Incentive Tax Credit (JGTC) in the same tax year—not both.

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Montana Qualified Endowment Credit

Overview:
This credit encourages charitable giving to permanent endowments held by Montana tax-exempt organizations. Individuals can earn a 40% credit for planned gifts, while businesses and estates can receive a 20% credit for outright donations—up to $15,000 annually.

Who It’s For:
Montana individuals, corporations, partnerships, LLCs, and estates who contribute to qualified endowments via planned or outright gifts.

Four Key Highlights:

  1. Up to $15,000 in Annual Credit
    Individuals get 40% of the charitable portion of planned gifts; businesses/estates get 20% for outright gifts.

  2. Donation Must Be to a Qualified Endowment
    Funds must be permanent, irrevocable, and held by a Montana tax-exempt entity or designated trust.

  3. Credit Use is Time-Sensitive
    Credit must be claimed in the same tax year as the donation—no carryforward allowed.

  4. Non-Refundable & Must Be Repaid if Recovered
    Credit only offsets tax liability and must be repaid if the gift is returned or revoked.

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Montana Contractor’s Gross Receipts Tax Credit

Overview:
This tax credit allows contractors and subcontractors to offset Montana income tax liability by reclaiming 1% of the gross receipts license tax paid on public construction contracts valued at $5,000 or more. It supports tax fairness for in- and out-of-state contractors performing public work in Montana.

Who It’s For:
Montana-based or out-of-state contractors and subcontractors who pay Montana's gross receipts tax on public construction projects.

Four Key Highlights:

  1. 1% Credit on Public Contract Gross Receipts
    Contractors can claim an income tax credit equal to the 1% license tax paid on Montana public contracts over $5,000.

  2. Choice Between Income or License Fee Credit
    Contractors may either take a credit against income tax OR apply the credit toward Montana property and vehicle registration fees (not both).

  3. Five-Year Carryforward Allowed
    If the credit exceeds the taxpayer's income tax liability, it may be carried forward for up to five years.

  4. Montana-Only Eligibility
    Credit applies solely to taxes and fees paid within Montana and to public (not private) construction projects.

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