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MontanaHB 84569th Legislature, Regular Session (2025)HouseWALLET

Increase IRC 529 education savings income tax deduction

Sponsored By: Julie Darling (Republican)

Became Law

Taxation--Individual IncomeRevenue, StateTaxation (Generally)CollegesSchools and EducationUniversity System

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Bill Overview

Analyzed Economic Effects

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

Bigger 529 tax break for families

You can reduce Montana taxable income for 529 plan contributions. The limit is up to $4,500 per taxpayer each year, or up to $9,000 for a married couple filing jointly. The account must be owned by you, your spouse, or your Montana‑resident child or stepchild, and it can be a Montana plan or another state’s qualified plan. Married couples can choose to split contributions 50/50. For tax years after 2025, the limit rises with inflation and is rounded to the nearest $100. Nonqualified withdrawals are subject to Montana’s recapture tax. These changes apply to tax years that begin on or after January 1, 2025.

When 529 deduction changes start

The law takes effect on the day it is passed and approved. If this law and Senate Bill 53 change the same 529 subtraction subsection, this law’s change controls and Senate Bill 53’s change is void.

Sponsors & Cosponsors

Sponsor

  • Julie Darling

    Republican • House

Cosponsors

  • Dave Fern

    Democrat • Senate

Roll Call Votes

All Roll Calls

Yes: 278 • No: 11

House vote • 4/22/2025

Do Concur

Yes: 48 • No: 2

House vote • 4/18/2025

Do Concur

Yes: 41 • No: 4

House vote • 4/2/2025

Do Pass

Yes: 93 • No: 2

House vote • 4/1/2025

Do Pass

Yes: 96 • No: 3

Actions Timeline

  1. Chapter Number Assigned

    5/19/2025House

  2. Signed by Governor

    5/13/2025House

  3. Transmitted to Governor

    5/7/2025House

  4. Signed by President

    5/6/2025Senate

  5. Signed by Speaker

    5/2/2025House

  6. Returned from Enrolling

    4/27/2025House

  7. Sent to Enrolling

    4/22/2025House

  8. 3rd Reading Concurred

    4/22/2025Senate

  9. 2nd Reading Concurred

    4/18/2025Senate

  10. Committee Report--Bill Concurred

    4/9/2025Senate

  11. Committee Executive Action--Bill Concurred

    4/9/2025Senate

  12. Hearing

    4/4/2025Senate

  13. Revised Fiscal Note Printed

    4/3/2025House

  14. Referred to Committee

    4/3/2025Senate

  15. First Reading

    4/3/2025Senate

  16. Transmitted to Senate

    4/3/2025House

  17. 3rd Reading Passed

    4/2/2025House

  18. Revised Fiscal Note Signed

    4/2/2025House

  19. Revised Fiscal Note Received

    4/2/2025House

  20. 2nd Reading Passed

    4/1/2025House

  21. Revised Fiscal Note Requested

    3/31/2025House

  22. Committee Report--Bill Passed as Amended

    3/28/2025House

  23. Committee Executive Action--Bill Passed as Amended

    3/28/2025House

  24. Fiscal Note Printed

    3/26/2025House

  25. Hearing

    3/26/2025House

Bill Text

  • Enrolled

    4/23/2025

    PDF

  • As Amended (Version 2)

    3/28/2025

    PDF

  • Introduced

    3/19/2025

    PDF

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