MontanaHB 1669th Legislature, Regular Session (2025)HouseWALLET

Revise infrastructure loan program and tax credit

Sponsored By: Larry Brewster (Republican)

Became Law

Taxation--CorporationsTaxation--Individual IncomeLocal GovernmentTaxation (Generally)Taxation--CorporationsTaxation--Individual IncomeRevenue, State

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Loans to keep coal plant jobs

The board can make working‑capital loans to owners of coal‑fired power units to prevent job losses and steady affected towns. Total lending for these loans cannot exceed $50 million each year. When setting a loan size, the board considers tax losses if a plant closes early, whether the owner can run and maintain the unit, and other needed factors.

Business loans prioritize Montana jobs, with caps

The board lends to projects in its basic sector that will create at least 15 permanent, full‑time Montana jobs, add at least 15 such jobs, or raise pay for existing workers and employers. When choices are similar, the board favors employee‑owned and locally owned projects, Montana‑filled jobs, energy efficiency and environmental gains, use of Montana farm products, and small or mid‑sized businesses. Total loans are capped at $80 million for one program and $70 million for another. Each loan must be at least $250,000, and most loans cannot exceed $16,666 per estimated job created. No single borrower can receive more than 10% of the trust fund, and if a project’s debt would exceed 6% of the fund, at least 30% must come from a commercial lender; certain loans named in law are exempt.

Infrastructure loans and business tax credit

The state makes loans to local or tribal governments to build water, sewer, treatment, or road projects that let a business start or grow. The government can charge user fees, and the loan must be repaid from those fees; the infrastructure can serve as collateral. Loans get a job-credit interest rate cut only if the lower rate is passed to the job‑creating business. If your business was created or expanded because of one of these loans, you can claim a tax credit for the part of the user fees you pay, up to the total loan amount. You can carry unused credit forward 7 years or back 3 years, but you cannot claim it if you also deducted the fees. The board will not issue the loan until it is satisfied the legal condition is met; if it is not met, any credits taken must be returned. These rules apply to loans made on or after the law’s effective date and to credits claimed after December 31, 2025.

Sponsors & Cosponsors

Sponsor

Larry Brewster
Republican • House

Cosponsors

Greg Hertz
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 334 • No: 64

House vote • 3/21/2025

Do Concur

Yes: 49 • No: 1

House vote • 3/20/2025

Do Concur

Yes: 50 • No: 0

House vote • 1/13/2025

Do Pass

Yes: 98 • No: 0

House vote • 1/10/2025

AMD-HB0016.001.002 Reavis DO PASS

Yes: 38 • No: 62