- 2025
69th Legislature 2025 HB 908
- 1 - Authorized Print Version – HB 908
ENROLLED BILL
AN ACT REVISING JOB GROWTH INCENTIVE TAX CREDITS TO INCLUDE CERTAIN APPRENTICES IN
THE CONSTRUCTION INDUSTRY; REVISING LAWS RELATING TO WHEN THE TAX CREDIT MAY BE
CLAIMED; REVISING THE DEFINITION OF "QUALIFYING NEW EMPLOYEE" TO INCLUDE AN
APPRENTICE; REMOVING THE SUNSET DATE ON THE TAX CREDIT; AND AMENDING SECTIONS 15-30-
2357, 15-30-2361, 15-31-175, AND 39-11-404, MCA; AND REPEALING SECTION 24, CHAPTER 550, LAWS
OF 2021, AND SECTION 4, CHAPTER 391, LAWS OF 2023.”
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-30-2357, MCA, is amended to read:
"15-30-2357. (1) Subject to the
provisions of [ 15-30-2361 (8) and] 39-6-109, a taxpayer is allowed a credit against the tax imposed by chapter
31 or this chapter for employing a registered apprentice or registered veteran apprentice who works in
Montana.
(2) The credit may not exceed the taxpayer's tax liability and may not be carried forward or carried
back.
(3) The credit may be claimed only in the tax year in which the department of labor and industry
approved the credit as provided in 39-6-109(4). If a taxpayer claims the credit but was not approved by the
department of labor and industry, the taxpayer's return must be processed without regard to the credit.
(4) For fiscal year filers, the credit available to claim in the current fiscal year is the credit allowed
for the calendar year that ends within the taxpayer's fiscal period.
(5) Subject to the probationary period provided for in 39-6-109, if an employer employs an
apprentice for less than the full preceding calendar year, the employer may apply for the full credit for the year
in which the apprentice was employed. - 2025
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(6) The department shall, after consultation with the department of labor and industry, prescribe a
form for a taxpayer to claim the tax credit. The form must provide the department with sufficient information for
the proper administration of the credit.
(7) The department shall provide the department of labor and industry an annual report detailing
the tax credit provided to employers for the previous year. The information provided to the department of labor
and industry is subject to the provisions of 15-30-2618 and 15-31-511.
(8) The department may adopt rules, prepare forms, and maintain records that are necessary to
implement this credit. (Bracketed language terminates December 31, 2028--sec. 4, Ch. 391, L. 2023.)"
Section 2. Section 15-30-2361, MCA, is amended to read:
"15-30-2361. (1)
Subject to the provisions of 39-11-404, a taxpayer is allowed an annual job growth incentive tax credit against
the tax imposed by chapter 31 or this chapter for creating qualifying net employee growth in the state.
(2) The amount of the credit is equal to 50% of the taxpayer's total estimated taxes imposed on the
taxpayer each year for the Montana source wages paid to qualifying new employees in the credit certificate
under the Federal Insurance Contributions Act, 26 U.S.C. 3111(a) and (b).
(3) The credit allowed by this section may not be refunded if the taxpayer has a tax liability less
than the amount of the credit. If the sum of credit carryovers from the credit, if any, and the amount of credit
allowed by this section for the tax year exceeds the taxpayer's tax liability for the current tax year, the excess
attributable to the current tax year's credit is a credit carryover to succeeding tax years for a period not to
exceed 10 years from the tax year the credit was claimed. The entire amount of unused credit must be carried
forward to the earliest of the succeeding years, and the oldest available unused credit must be used first. Any
credit remaining 10 years after the tax year for which the credit is based may not be refunded or credited to the
taxpayer.
(4) The credit may be claimed for up to 7 years, but only in a tax year in which the department of
labor and industry approved the credit by issuing the taxpayer with a credit certificate as provided in 39-11-404.
If a taxpayer claims the credit but was not approved by the department of labor and industry, the taxpayer's
return will be processed without regard to the credit. - 2025
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(5) For fiscal year filers, the credit available to claim in the current fiscal year is the credit allowed
for the calendar year that ends within the taxpayer's fiscal period.
(6) The department shall, after consultation with the department of labor and industry, prescribe a
form for a taxpayer to claim the tax credit. The form must provide the department with sufficient information for
the proper administration of the credit.
(7) The department shall provide the department of labor and industry with an annual report
detailing the tax credit provided to taxpayers for the previous year. The information provided to the department
of labor and industry is subject to the provisions of 15-30-2618 and 15-31-511.
(8) A taxpayer claiming this credit may not claim the apprenticeship tax credit pursuant to sections
15-30-2357, 15-31-173, and 39-6-109 in the same tax year that this credit is claimed. This subsection does not
prevent a credit carryover from this credit from being used in a tax year in which the apprenticeship tax credit is
claimed.
(9)(8) Each biennium, the department shall provide to the revenue interim committee information
regarding all approvals granted and credit certificates issued, including the credits claimed, the names of the
qualifying employers of the credits, and the amount of tax credits claimed. This information is not subject to the
confidentiality requirements of 15-30-2618 or 15-31-511.
(10)(9) For the purposes of this section, the terms "credit certificate", "qualifying employer", "qualifying
net employee growth", and "qualifying new employee" have the same meaning as those terms are defined in
39-11-404. (Terminates December 31, 2028--sec. 4, Ch. 391, L. 2023.)"
Section 3. Section 15-31-175, MCA, is amended to read:
"15-31-175. (1) There
is an annual job growth incentive tax credit against the taxes otherwise due under 15-31-121 or 15-31-122 that
is allowable in the amount established pursuant to 15-30-2361 when a taxpayer hires qualifying new employees
as defined in 39-11-404 in the state. The credit is administered as provided in 15-30-2361, 39-11-404, and this
section.
(2) If the credit allowed under this section is claimed by a small business corporation as defined in
15-30-3301 or a partnership, the credit must be attributed to shareholders or partners using the same - 2025
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proportion to report the corporation's or partnership's income or loss for Montana income tax purposes.
(Terminates December 31, 2028--sec. 4, Ch. 391, L. 2023.)"
Section 4. Section 39-11-404, MCA, is amended to read:
"39-11-404. (1) An
employer that hires qualifying new employees is eligible for an annual job growth incentive tax credit against
income taxes imposed pursuant to Title 15, chapter 30 or 31.
(2) The amount and duration of the credit is administered by the department of revenue as
provided in 15-30-2361 and 15-31-175.
(3) A qualifying employer seeking approval to claim a credit shall apply for a credit certificate with
the department for the preceding calendar year. The application must be submitted on a form prescribed by the
department on which the employer:
(a) identifies and describes the number of qualifying new employees hired;
(b) provides necessary details to calculate the net employee growth and qualifying net employee
growth;
(c) provides documentation necessary to calculate the job growth incentive tax credit, including but
not limited to the average yearly wage of each qualifying new employee; and
(d) submits any other information the department considers necessary for auditing purposes and to
determine whether the employer qualifies for a credit certificate.
(4) After receiving an application, the department shall:
(a) provide the employer with a credit certificate, which must accompany the employer's tax return
that is filed with the department of revenue; or
(b) deny an application for a credit certificate and provide the employer with the reasoning for the
denial. Prior to issuing a denial, the department shall provide the employer with an opportunity to resolve
deficiencies in the application.
(5) The department shall provide to the department of revenue a list of the qualifying employers
approved for a credit certificate, the qualifying new employees employed by the qualifying employer, and the
aggregate total of net employee growth and qualified net employee growth for qualified employers claiming the - 2025
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credit. The list must include the federal tax identification number of the qualifying employer and the name and
social security number or federal tax identification number of the qualifying new employees that were utilized
during the issuance of a credit certificate.
(6) The identity and social security number or federal tax identification number of individuals
employed by the employer are subject to the provisions of 15-30-2618 and 15-31-511.
(7) The department may audit an employer applying for a credit certificate or who has obtained a
credit certificate.
(8) By November 1 of each year, the department shall multiply the minimum yearly wage in
subsection (10)(j)(i)(C) by the inflation factor for the following tax year and round the product to the nearest $10.
The resulting minimum yearly wage is effective for that following tax year and must be used in calculating the
minimum yearly wage.
(9) The department may adopt rules necessary to administer this section.
(10) For the purposes of this section, the following definitions apply:
(a) "Business transfer" means any change in ownership or transfer of all or a material portion of
the business to another entity or individual by entity merger, combination, reorganization, asset acquisition,
transfer, or other similar business transaction in which an existing business is continued under new ownership
or a different entity.
(b) "Credit certificate" means a statement issued by the department to a qualifying employer that
provides the number of qualifying new employees hired or retained by the qualifying employer starting with
calendar year 2022 and ending in calendar year 2028.
(c) "Department" means the department of labor and industry provided for in 2-15-1701.
(d) "Employer" includes any person, entity, or fiduciary, resident or nonresident, subject to a tax or
other obligation imposed by Title 15, chapters 30 and 31.
(e) "Inflation factor" means a number determined for each tax year by dividing the consumer price
index as defined in 15-30-2101 for June of the previous tax year by the consumer price index for June 2021.
(f) "Net employee growth" means the total number of qualifying new employees employed by the
employer in the state during any calendar year starting with calendar year 2022 and ending in calendar year
2028. - 2025
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(g) "Predecessor" means any entity or individual that operated a business prior to a business
transfer to the employer.
(h) "Qualifying employer" means an employer with qualifying net employee growth.
(i) (i) "Qualifying net employee growth" means:
(A) unless subsection (10)(i)(i)(B) applies, net employee growth equal to at least 10 qualifying new
employees during the first year the credit is claimed and at least 15 total qualifying new employees during any
subsequent calendar year;
(B) for a county with a population of 20,000 or less, net employee growth equal to at least 5
qualifying new employees during the first year the credit is claimed and at least 7 total qualifying new
employees during any subsequent calendar year.
(ii) In order to qualify, the net employee growth must be associated with a project in the state that
encourages, promotes, and stimulates economic development in the sectors of construction, natural resources,
mining, agriculture, forestry, manufacturing, transportation, utilities, or outdoor recreation.
(j) (i) "Qualifying new employee" means:
(A) an employee of a qualifying employer:
(A)(I) who is hired in any calendar year starting with calendar year 2022 and ending in calendar year
2028;
(B)(II) who is employed for at least 6 months during the year for which the credit is granted;
(C)(III) with a yearly wage of at least $50,000, plus any benefits paid to other employees of the
employer; and
(D)(IV) who increases the number of total employees that are employed by the employer from the
number of employees employed by the employer in calendar year 2021; or
(B) an apprentice as defined in 39-6-101 who is in the construction industry.
(ii) The term does not include an employee:
(A) previously employed by the employer or a predecessor in the preceding 12 months; or
(B) hired to replace an employee of a predecessor. (Terminates December 31, 2028--sec. 4, Ch.
391, L. 2023.)" - 2025
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Section 5. Section 24, Chapter 550, Laws of 2021, and section 4, Chapter 391, Laws of
2023, are repealed.
- END - I hereby certify that the within bill,
HB 908, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025. HOUSE BILL NO. 908
INTRODUCED BY C. SCHOMER, E. BUTTREY
AN ACT REVISING JOB GROWTH INCENTIVE TAX CREDITS TO INCLUDE CERTAIN APPRENTICES IN THE
CONSTRUCTION INDUSTRY; REVISING LAWS RELATING TO WHEN THE TAX CREDIT MAY BE CLAIMED;
REVISING THE DEFINITION OF "QUALIFYING NEW EMPLOYEE" TO INCLUDE AN APPRENTICE;
REMOVING THE SUNSET DATE ON THE TAX CREDIT; AND AMENDING SECTIONS 15-30-2357, 15-30-
2361, 15-31-175, AND 39-11-404, MCA; AND REPEALING SECTION 24, CHAPTER 550, LAWS OF 2021, AND
SECTION 4, CHAPTER 391, LAWS OF 2023.”