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MontanaHB 90869th Legislature, Regular Session (2025)HouseWALLET

Generally revise employee tax credit laws to include apprentices

Sponsored By: Curtis Schomer (Republican)

Became Law

Labor and EmploymentRevenue, State

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

Job growth credit for new hires

Employers can get an annual credit equal to 50% of their employer payroll taxes on Montana wages for qualifying new employees. Qualifying hires now include construction apprentices. They must be hired in 2022–2028, work at least 6 months, and earn at least $50,000 plus benefits. Hiring must raise your total employees above your 2021 level; rehires and replacements do not qualify. The credit is not refundable, can be carried forward up to 10 years, and may be claimed for up to 7 years, only in years with a department certificate. You cannot also claim the apprenticeship credit in the same year. These rules end December 31, 2028.

Tax credit for hiring apprentices

Employers can claim a Montana income tax credit for hiring a registered apprentice or registered veteran apprentice who works in the state. The Department of Labor and Industry must approve the credit for the year. The credit is not refundable and cannot be carried forward or back. You must claim it in the tax year the department approves it. Fiscal‑year filers use the credit for the calendar year that ends within their fiscal year. If an apprentice worked less than the full prior calendar year, you may still claim the full credit for that year if approved.

Apply and split the job growth credit

Employers must apply to the Department of Labor and Industry for a prior‑year credit certificate and list qualifying new hires, wages, and net employee growth. The department approves or denies and lets you fix problems first, and it may audit. Each year by November 1, it adjusts the minimum yearly wage for the next tax year for inflation and rounds to the nearest $10. The department shares employer FEIN and employee names and Social Security numbers with Revenue; identities stay confidential by law. For small business corporations and partnerships, the credit is split to owners in the same share they report Montana income or loss. These rules end December 31, 2028.

Two earlier session laws repealed

The law repeals Section 24, Chapter 550 (2021) and Section 4, Chapter 391 (2023). Those session‑law provisions are removed from Montana law.

Sponsors & Cosponsors

Sponsor

  • Curtis Schomer

    Republican • House

Cosponsors

  • Ed Buttrey

    Republican • House

  • Wendy McKamey

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 235 • No: 61

House vote • 4/22/2025

Do Concur

Yes: 30 • No: 20

House vote • 4/18/2025

Do Concur

Yes: 31 • No: 18

House vote • 4/5/2025

Do Pass

Yes: 85 • No: 13

House vote • 4/4/2025

Do Pass

Yes: 89 • No: 10

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

    4/28/2025House

  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

    4/16/2025Senate

  11. Committee Executive Action--Bill Concurred

    4/16/2025Senate

  12. Revised Fiscal Note Printed

    4/11/2025House

  13. Revised Fiscal Note Signed

    4/10/2025House

  14. Hearing

    4/9/2025Senate

  15. Revised Fiscal Note Received

    4/9/2025House

  16. Referred to Committee

    4/7/2025Senate

  17. First Reading

    4/7/2025Senate

  18. Transmitted to Senate

    4/5/2025House

  19. 3rd Reading Passed

    4/5/2025House

  20. 2nd Reading Passed

    4/4/2025House

  21. Fiscal Note Printed

    4/3/2025House

  22. Committee Report--Bill Passed

    4/3/2025House

  23. Committee Executive Action--Bill Passed

    4/3/2025House

  24. Taken from Table in Committee

    4/3/2025House

  25. Fiscal Note Signed

    4/2/2025House

Bill Text

  • Enrolled

    4/23/2025

    PDF

  • As Amended (Version 2)

    4/2/2025

    PDF

  • Introduced

    3/28/2025

    PDF

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