Montana 2023 Regular Session

Montana House Bill HB601

Introduced
2/16/23  
Refer
2/20/23  
Engrossed
3/3/23  
Refer
3/14/23  
Enrolled
4/20/23  

Caption

Revise annual job growth incentive tax credit

Impact

The changes introduced by HB 601 are set to have a considerable impact on state laws governing tax reductions connected to employment growth. By revising the criteria for what constitutes 'qualifying new employees' and ultimately making it easier for firms to claim tax credits, the bill aims to promote sustainable job creation in crucial sectors such as construction and manufacturing. Additionally, it emphasizes reporting requirements for the Department of Labor and Industry, which will track the effectiveness of these incentives over time.

Summary

House Bill 601 is an initiative aimed at revising and enhancing the annual job growth incentive tax credit for employers in Montana. This bill modifies existing laws to provide more clarity in definitions related to tax credits and to adjust the amounts associated with new job creation. The primary objective is to encourage businesses to hire more employees, thereby promoting economic growth within the state. The revisions also stipulate processes for tax credit applications and approval mechanisms involving the Department of Labor and Industry as well as the Department of Revenue.

Sentiment

The sentiment surrounding HB 601 seems largely favorable among business stakeholders who see it as a necessary step for stimulating employment and bolstering the economy. Proponents argue that expanding the scope and accessibility of the tax credit will encourage employers to invest in workforce expansion. Conversely, there may be concerns about the management of these tax credits and whether they will effectively translate into job creation, especially in regions with high unemployment rates.

Contention

Notable points of contention surrounding the bill include the specifics of the definitions for 'qualifying new employee' and the minimum wage or employment duration standards imposed on employers. These details are critical as they determine which businesses are eligible for the tax credits. Detractors may question the efficacy of such incentives, fearing potential misuse or insufficient accountability in their administration. The retroactive applicability and immediate effective date of the bill may also spark discussions on pre-existing laws and their implications on current economic conditions.

Companion Bills

No companion bills found.

Previously Filed As

MT HB908

Generally revise employee tax credit laws to include apprentices

MT HB318

Providing housing tax incentives

MT SB408

Revise public access laws related to tax credits and incentives

MT HB241

Relating to the Alabama Jobs Act and the Growing Alabama Act; to amend Sections 40-18-370, 40-18-372, 40-18-374, 40-18-375, 40-18-376, 40-18-376.1, 40-18-376.2, 40-18-376.3, 40-18-376.4, 40-18-377, 40-18-378, 40-18-382, 40-18-383, 40-18-417.1, 40-18-417.2, 40-18-417.3, 40-18-417.4, 40-18-417.7, and 40-9B-4.1, Code of Alabama 1975, to extend the Alabama Jobs Act sunset date to July 31, 2028; to increase the annualized cap on outstanding Alabama Jobs Act incentives by twenty-five million dollars each year for five years up to four hundred seventy-five million dollars; to increase the investment tax credit transfer time to provide that the first five years of the investment credit may be transferred by the incentivized company and applied by another person or company under the Alabama Jobs Act; to extend the Growing Alabama Act sunset date to July 31, 2028, to increase the annual cap on funding approved pursuant to the Growing Alabama Act to thirty-five million dollars; to remove certain programs from the Growing Alabama Act for the transfer to Innovate Alabama.

MT SB164

Relating to the Alabama Jobs Act and the Growing Alabama Act; to amend Sections 40-18-370, 40-18-372, 40-18-374, 40-18-375, 40-18-376, 40-18-376.1, 40-18-376.2, 40-18-376.3, 40-18-376.4, 40-18-377, 40-18-378, 40-18-382, 40-18-383, 40-18-417.1, 40-18-417.2, 40-18-417.3, 40-18-417.4, 40-18-417.7, and 40-9B-4.1, Code of Alabama 1975, to extend the Alabama Jobs Act sunset date to July 31, 2028; to increase the annualized cap on outstanding Alabama Jobs Act incentives by twenty-five million dollars each year for five years up to four hundred seventy-five million dollars; to increase the investment tax credit transfer time to provide that the first five years of the investment credit may be transferred by the incentivized company and applied by another person or company under the Alabama Jobs Act; to extend the Growing Alabama Act sunset date to July 31, 2028, to increase the annual cap on funding approved pursuant to the Growing Alabama Act to thirty-five million dollars; to remove certain programs from the Growing Alabama Act for the transfer to Innovate Alabama.

MT SSB1205

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See SF 657.)

MT HSB305

A bill for an act relating to matters under the purview of the Iowa economic development authority, including tax credit limits, targeted jobs tax credits, and the major economic growth attraction program; creation of the business incentives for growth program, the seed investor tax credit program, the Iowa film production incentive program, the research and development tax credit program, and the sustainable aviation fuel production tax credit program; elimination of the high quality jobs program, the investments in qualifying businesses tax credit, employer child care tax credits, assistive device tax credits, endow Iowa tax credits, and research activities tax credits; and including effective date provisions and criminal penalties.(See HF 1054.)

MT HB355

Provides for the comprehensive revision of the tax code and tax incentives (EG SEE FISC NOTE GF RV See Note)

MT SB110

Modify tax credits under the rural business growth program

MT HB1260

Advanced Industry and Semiconductor Manufacturing Incentives

Similar Bills

CA SB1278

Labor statistics: annual report.

CA AB58

Deferred entry of judgment pilot program.

CA AB1651

Worker rights: Workplace Technology Accountability Act.

CA SB335

Transactions and use taxes: County of Santa Clara.

HI HB202

Relating To The Adequate Reserve Fund.

CA AB1350

Department of Toxic Substances Control: environmental fee: exemption.

CA AB1885

Debtor exemptions: homestead exemption.

CA AB2394

Public Employees’ Retirement System: allowances: cost of living adjustment.