SPOTLIGHT PROGRAMS

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%.

Enterprise Data Center Class 17 Property Tax:  Data centers at least 300,000 square feet and $150 million in total investment or 25,000 square feet of new or expanded area where the total cost of land, improvements, personal property and software is at least $50 million qualify for Class 17 incentives. Data centers’ property tax liability may be reduced by 75% or 50% of their taxable value in the first five years after a construction permit is issued and increased by equal percentages until the full taxable value is reached in the tenth year.

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TAX CREDITS

Grow Montana Jobs: Non-refundable annual job creation credit to apply against the state corporate or individual income tax for tax years 2022-2028. The credit is equal to 50% of Montana FICA taxes paid by an employer multiplied by the number of qualifying new employees certified each year. The credit can be claimed for up to 7 years and carried forward 10 years.

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TAX EXEMPTIONS

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 5% are eligible for reduced property taxes. The project may receive a property tax exemption during the construction period for up to 12 months, and for up to five years following the completion of construction. The buildings and structures may also receive a property tax reduction for four years following the exemption period applied to the increase in taxable value.

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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.

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. In the first five years after construction begins, qualifying improvements or modernized processes must be taxed at 25% or 50% of their taxable value. Each year after, the percentage must be increased by equal percentages until the full taxable value is attained in the 10^th year.

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TRAINING

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. The tax credit is once the apprentice has completed the probationary period or after 6 months, whichever is earlier. The credit can be applied to each qualified apprentice’s training program for the length of the program, up to five years.

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Last Updated: May 2023