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SB 157

Provide income tax deduction up to 150% for charitable donations

2025 Regular Session Introduced by Daniel Emrich

Montana bill proposing 150% income tax deduction for charitable donations died in committee after missing revenue bill deadline and raising fiscal concerns.

(S) Died in Process
#revenue #state #taxation(generally) #taxation--individualincome
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Bill Summary · SB 157

Legislative bill overview

SB 157 would have allowed Montana taxpayers to deduct up to 150% of their charitable donations from their state income taxes. This means a donor could deduct $1.50 for every $1.00 given to qualified charities, effectively creating a tax incentive that exceeds the actual donation amount. The bill died in the legislative process without advancing beyond the taxation committee.

Why is this important

Tax incentives for charitable giving directly affect state revenue and nonprofit funding. A 150% deduction would significantly reduce state tax collections while potentially increasing donations to charitable organizations. This creates a tradeoff between supporting nonprofits and maintaining state budget resources for public programs.

Potential points of contention

  • Fiscal impact: The unsigned fiscal note suggests uncertainty about revenue loss; a 150% deduction is more generous than typical charitable incentives and would substantially reduce state income tax revenue
  • Equity concerns: Tax deductions primarily benefit higher-income earners who itemize deductions, potentially concentrating benefits among wealthier Montanans rather than broadly supporting charitable causes
  • Revenue bill procedural issue: The bill missed the deadline for revenue bill transmittal, indicating it faced procedural challenges related to its fiscal implications

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

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