Tax Incentives, Deductions and Credits for Montana Income Tax Return

Tax season is not a favorite time of year for anyone, however, by knowing information about a few tax incentive programs offered by the state of Montana, Montana residents can save money on their tax liability. The state of Montana’s Revenue Department offers 24 tax incentives for its residents, however, this article will only review those tax incentives that the average Montana resident will be able to use. They apply to charitable contributions, energy conservation, and elderly resident costs of living. If you are a farmer or own a business, you may want to visit the Montana Department of Revenue’s website for information on the other tax incentives (http://www.mt.gov/revenue/forindividuals/individualincome/incentivesiit.asp).

College Contribution Credit

The first Montana tax incentive is the College Contribution Credit. This credit is not applicable to college expenses incurred by the resident, but instead is a credit for people who make charitable contributions to one of the state’s Universities or private colleges’ general endowment programs. This tax incentive is available to individuals, partnerships, corporations, and small businesses. The total amount that can be deducted from your tax liability will be based on 10% of total amount contributed up to a maximum deduction of $500. To get this credit you must fill out Montana Form CC.

Energy Conservation Installation Credit