EARNED INCOME TAX CREDIT (EITC)

Rate (Refundable): 10% of the federal credit

Eligibility Requirements: All Montana taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action:

• In 2023, Gov. Greg Gianforte included an expansion of the state EITC in a $1 billion tax cut package. The expansion increased the tax credit from 3% to 10% of the federal rate. 
• In 2017, a bill to create a refundable Montana Earned Income Tax Credit (EITC) at 3 percent of the federal credit was passed by the legislature with broad bipartisan support.
• In 2015, lawmakers considered a bill that would have created a state EITC equal to 5 percent (originally introduced at 10%) of the federal credit. The measure passed the House Taxation committee, but was voted down by the full legislature.

CHILD TAX CREDIT (CTC)

Montana does not currently offer a state-level CTC.

Latest Legislative Action: In 2023, Gov. Greg Gianforte proposed a state CTC as part of the state budget. The bill stalled out in the House Appropriations Committee. The credit would have created an annual credit of up to $1,200 per child under six. 

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Rate (Non-Refundable): $180 for 2 children or dependents, $192 for 3 or more.

Eligibility Requirements:

• Only care expenses for children under age 15 may be claimed for this credit.

Latest Legislative Action:

Notes: Known as the Montana Child and Dependent Care Expense Deduction.