Bill

HB 326

Establish a tax on electrical energy not produced by coal to match coal severance tax rate

2025 Regular Session Introduced by Gary Parry

Bill would tax non-coal electricity at coal severance tax rates to equalize energy source taxation but died in committee without fiscal clarity.

(H) Died in Process

#energy #revenue #state #rulemaking #taxation--minerals #taxation--sales #counties #statefinance #taxation #taxation--coal

WeVote Research Nonpartisan

Bill Summary · HB 326

Legislative bill overview

HB 326 would impose a tax on electricity generated from non-coal sources at a rate matching Montana's existing coal severance tax. The bill aims to create tax parity between coal-based energy production and alternative energy sources. The legislation died in the 2025 session without advancing past the revenue bill transmittal deadline.

Why is this important

This bill reflects ongoing tensions between Montana's traditional coal industry and emerging renewable energy sectors. The outcome affects tax competitiveness for energy producers, state revenue distribution, and Montana's energy development incentives. It signals legislative priorities regarding fossil fuel protection versus energy diversification.

Potential points of contention

Industry impact asymmetry: A tax on renewables while coal retains its current status could disadvantage solar, wind, and hydroelectric development and increase electricity costs for consumers
Economic development conflict: States competing for renewable energy investment may offer better tax treatment, potentially pushing Montana projects elsewhere
Revenue assumptions: Unsigned fiscal notes suggest uncertainty about actual tax collections and whether the measure would generate meaningful revenue or primarily serve as a regulatory barrier

Compiled from official sources — confirm details with the bill’s official record.

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