MontanaSB 45869th Legislature, Regular Session (2025)SenateWALLET

Revise commercial property assessed capital enhancement program laws

Sponsored By: Kenneth Bogner (Republican)

Became Law

Economic DevelopmentPlanning and Development

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 3 benefits, 0 costs, 3 mixed.

Commercial and farm owners can finance upgrades

Beginning October 1, 2025, local governments can arrange third‑party financing for upgrades on eligible commercial, industrial, covered multifamily, and agricultural property. You can finance energy conservation work and new public safety and resiliency projects like seismic fixes, better indoor air, wind/fire/flood protection, outage resilience, stormwater controls, and certain public firearm storage. You repay through an assessment on the property. Financing can cover materials, labor, permits, inspections, application and admin fees, and bank fees. You may also use your own commercial lender while the program collects and passes payments through the assessment.

Assessment payback limits and tax-lien rules

Beginning October 1, 2025, your assessment term cannot be longer than the useful life of the financed project. Assessment installments appear on your property tax bill and are collected at the same time as property taxes, unless your local government uses a special assessment ordinance. An assessment becomes a lien on the property from the assessment date and runs with the land. The lien has the same priority as property tax liens and is removed when all amounts are paid. Local governments can enforce collection the same way they collect property taxes.

Owner protections and lender signoff required

Beginning October 1, 2025, a program contract is invalid unless your mortgage holder signs a notarized subordination agreement within three months before your application, records it with the county, and certifies the signer’s authority. Model contracts must clearly show total project costs, the assessment’s effective interest rate, any admin fees, the estimated payment schedule, and that a lien may be placed on the property. Before you sign, the authority gets independent proof that you understand and accept the terms. You may cancel within three business days of signing. Your property must have no delinquent taxes, special assessments, or unpaid water or sewer charges to enter the program.

Skilled Montana workers get hiring preference

Beginning October 1, 2025, program‑funded projects must use a skilled and trained workforce. Contractors must prefer bona fide Montana residents when they have substantially equal qualifications to nonresidents.

Local programs need a hearing and plan

Beginning October 1, 2025, a local government must publish a program plan, pass a resolution of intent, and hold a public hearing before starting the program. After public comment, it adopts the program rules, states what changes need another hearing, and names who can sign contracts with funders and property owners.

Energy projects need third-party checks

Beginning October 1, 2025, energy conservation projects under the program need an energy analysis by a licensed or certified professional approved by the authority. When the work is done, the installing contractor must give written proof that the project was installed right and is operating as intended. These steps add planning and verification, but help ensure savings match expectations.

Sponsors & Cosponsors

Sponsor

Kenneth Bogner
Republican • Senate

Cosponsors

Courtenay Sprunger
Republican • House

Roll Call Votes

All Roll Calls

Yes: 294 • No: 4

Senate vote • 4/11/2025

Do Concur

Yes: 97 • No: 2

Senate vote • 4/10/2025

Do Concur

Yes: 98 • No: 1

Senate vote • 3/6/2025

Do Pass

Yes: 49 • No: 1

Senate vote • 3/5/2025