Biggins Lacy Shapiro & Company, LLC

Montana Economic Development Incentive Programs

grants

Big Sky Economic Development Trust Fund:  This discretionary program provides funds to local governments in the form of grants and loans for the purchase of machinery, equipment and/or working capital for economic development projects.  Up to $7,500 may be awarded for each new full-time job created. In addition, funds can be awarded in the form of grants for planning and capacity building.

TAX CREDITS

New or Expanding Industry Wage Credit: A manufacturing corporation increasing its total full time employment by at least 30% in the State may receive a corporation license tax credit equal to 1% of wages paid to new employees for the first 3 years of operation and expenses. 

SPECIAL ZONING

Empowerment Zone Tax Credit:  For individuals or corporations meeting eligibility criteria, the credit against income tax liability for each qualifying employee is equal to $500 for the first year of employment, $1,000 for the second year of employment, and $1,500 for the third year of employment. The credit may be carried back for 3 years and carried forward for 7 years. The employer is also entitled to a credit against the state’s insurance premium tax.

TAX ABATEMENTS

New Industrial Property Tax Abatement:  Manufacturing businesses that establish a new location in Montana are eligible to receive a reduced taxable valuation rate of 3% on real and personal property for a period of 3 years.  Property dedicated to R&D is also eligible for the reduced taxable valuation rate of 3%.

New or Expanded Industries Property Tax Abatement: A business that starts operations or invests a minimum of $125,000 worth of qualifying improvements or modernized processes may receive partial property tax abatement for up to 9 years based on an increase in taxable value caused by improvements. The benefits is 50% reduction on the increased taxable value for the first five years, with a 10% lower reduction every year after. 

Reduced Rate for Remodeling of Building or Structures: Properties that are remodeled, reconstructed or expanded and result in an increase in taxable value of at least 2.5% are eligible for reduced property taxes. The tax rate is 0% during the construction period and escalates at an annual rate of 20% with the reduced rate expiring in the fifth year following construction.

Industrial Park Property Tax Exemption: If approved by the local governing body, an industrial park owned and operated by a local economic development organization or port authority is eligible for an exemption from local property taxes.

Enterprise Data Center Class 17 Property Tax:  Data centers at least 300,000 square feet and $150 million in total investment qualify for Class 17 property tax rate of 0.9%.

TRAINING

The Primary Sector Workforce Training Grant: Provides funds to businesses for training new and existing full-time workers with a maximum grant of $5,000 for each full-time employee and $2,500 for each part-time worker.  Qualifying businesses must provide a $1 of match for every $3 of grant funds.

Apprenticeship Tax Credit: Beginning in tax year 2018, Montana employers may apply for a tax credit of $750 for each new registered apprentice, or $1,500 for each new registered apprentice who is a veteran and offered on-the-job training through the Montana Registered Apprenticeship Unit.

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
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