Montana isn’t just famous for its natural beauty—it’s also becoming a popular state for aspiring business owners. Whether you’re just getting your business idea underway or have been operating for a while, you can take advantage of a handful of helpful tax incentives. 

Keep reading for our list of tax credits and incentive programs available only to Montana business owners. 

Business tax incentives in Montana

Job Growth Incentive Tax Credit

Montana’s Job Growth Incentive Tax Credit (JGTC) encourages Montana businesses to create new high-paying jobs. Eligible businesses in certain industries can get a tax credit equal to 50% of their employer-paid payroll taxes for qualifying new employees. 

To qualify for the JGTC, your business needs to meet the following requirements: 

  • Hire at least five net new employees in Montana during the tax year you apply for (or ten net employees for projects in counties with populations of more than 20,000)
  • Confirm that the employees worked for six months or more during the year, had a wage over $50,000 per year, and received the same benefits offered to other employees
  • Hire the new employees for a qualified project in one of the following industries: construction, natural resources, mining, agriculture, forestry, manufacturing, transportation, utilities, or outdoor recreation 

Learn more about the JGTC and apply here. 

Not sure how to get started? Here’s everything you need to know about hiring for your small business. 

MEDIA Tax Credit

The Montana Economic Development Industry Advancement (MEDIA) Tax Credit rewards eligible production companies for setting their projects—and incurring expenses—in Montana. The credit is equal to 20% of a company’s eligible production expenditures in Montana, but additional amounts can increase up to 35% of the production company’s base investment in the tax year. 

Here are the additional credits:

  • 25% of compensation for MT resident crew
  • 15% of compensation for non-MT resident crew
  • 20% of above-the-line compensation (actor, director, producer, writer)
  • 30% of the compensation paid to a student enrolled in an MT college/university who works on the production for college credit
  • 10% of payments to MT colleges/universities for stage, equipment, rentals, or location fees for filming on campus
  • 10% of all in-studio facility/equipment expenditures that rent a studio for 20 days or more
  • 5% of expenditures in an underserved county
  • 5% for using the “Filmed in Montana” screen credit logo
  • 25% of post-production wages

To qualify for the credit, you need to get pre-certified by the Montana Film Office. 

Apprenticeship Tax Credit 

Montana’s Apprenticeship Tax Credit gives employers a credit for hiring registered apprentices and offering proper job training through the Montana Registered Apprenticeship Unit. eligible employers can get a $750 credit for each new registered apprentice they hire and $1,500 for each new registered veteran apprentice they hire. 

You can learn more about hiring an apprentice in Montana here or apply for the credit here.

Trades Education and Training Tax Credit

Through this program, employers can get a tax credit for providing apprentices with job training and educational resources for qualified trades. The credit is equal to 50% of the cost of qualifying trades education or training expenses incurred during the tax year, not to exceed $2,000 per employee and $25,000 total annually. 

Qualified expenses—which include tuition, fees, books, supplies, and equipment—must be for employees who work in Montana for at least six months of the year. 

The following trades are eligible for consideration: 

  • Boilermakers
  • Brick, block, and stone masons
  • Carpenters
  • Carpet installers
  • Cement masons and terrazzo workers
  • Construction and building inspectors
  • Construction equipment operators
  • Construction laborers and helpers
  • Drywall and ceiling tile installers and tapers
  • Electricians 
  • Elevator installers and repairers
  • Glaziers
  • HVAC workers
  • Logging and lumbering
  • Machinists
  • Maintenance mechanics and auto mechanics
  • Millwrights
  • Oil and gas workers
  • Painters
  • Plumbers, pipefitters, and steamfitters
  • Roofers
  • Sheet metal workers
  • Structural iron and steel workers
  • Telecommunications tower technicians
  • Tile and marble setters
  • Trucking
  • Water well drillers
  • Welders
  • Wind turbine technicians

Learn more about the credit and how to apply here. 

Contractor’s Gross Receipt Tax Credit

The Contractor’s Gross Receipts Tax Credit is for Montana contractors doing work under public contracts and paying the Contractor’s 1% Gross Receipts Tax (CGR). The CGR says that all contractors must pay a 1% tax on public construction projects over $80,000. 

Contractors can get an income tax credit to offset their individual income tax or corporate income tax. Alternatively, contractors can also use the credit to request a refund of personal property taxes and motor vehicle fees they paid as a contractor, including the following:

  • County Option Tax
  • Light Vehicle Registration Fee
  • Permanent Light Vehicle Registration Fee
  • Truck Flat Fee

Learn more about the tax credit here. 

Historic Buildings Preservation Credit

The Historic Buildings Preservation Credit is available to businesses that restore a historic building they own or lease in Montana. Eligible businesses can get a tax credit equal to 25% of their qualified restoration expenditures. 

Learn how to claim the credit here. 

Innovative Education Program Credit

Montana’s Innovative Educational Program Credit is available to businesses that donate to Montana public school districts (PSD) to help them implement innovative educational programs. The credit is equal to the donation amount, up to $200,000, and is given on a first-come, first-served basis. 

See a list of eligible PSDs here, or learn how to claim the credit here. 

Qualified Endowment Credit

The Qualified Endowment Credit is a tax credit available to businesses that make qualifying charitable contributions to a qualified endowment—a permanent, irrevocable fund established for a specific charitable, religious, educational, or philanthropic purpose—in Montana. 

The credit your business can take depends on the type of donation made: planned gifts or outright gifts. Individuals and trusts can only make qualified planned gifts, while corporations, partnerships, and estates can make both planned gifts and outright gifts to qualify for the credit. 

For individuals, estates, trusts, corporations, and partnerships that make a planned gift to a qualified endowment, the credit is equal to 40% of the present value of the gift, up to $15,000.

For corporations, partnerships, and estates that make an outright gift to a qualified endowment, the credit is equal to 20% of the gift, up to $15,000.

Find out how to claim the credit here. 

Recycle Credit

Businesses in Montana that are involved in collecting, manufacturing, and processing recycled materials might be eligible for the Recycle Credit. The credit is 25% of the first $250,000 of qualifying expenditures, an additional 15% credit on the next $250,000, and 5% credit on up to $500,000 more spent on qualifying equipment. 

The total credit claimed can’t exceed $125,000 per business. 

Qualifying expenditures include the cost of investments in depreciable equipment or machinery used in Montana to collect, process, or manufacture a product from reclaimed material. Depreciable property that treats soil contaminated by hazardous wastes is also eligible for the credit.

Learn how to calculate your credit amount here. 

Related: 10 green business certifications to consider

Student Scholarship Organization Credit

Montana’s Student Scholarship Organization Tax Credit is available to businesses that donate to approved Student Scholarship Organizations (SSO) to support scholarships for eligible students. The credit is equal to the donation amount, up to $200,000, and is given on a first-come, first-served basis. 

See a list of eligible SSOs here, or learn how to claim the credit here.

Montana city and county tax credits

In Montana, some cities and counties—like Bozeman—have their own business tax credits and exemptions. Search your city’s website here to find more information. 

Business financing in Montana

If your business needs funding to get started or grow, consider your state resources. Montana has a slew of business loans and grants available to local business owners in every industry. For a list of options, check out Gusto’s guide to grants and loans in Big Sky Country. 

Need more helpful advice? Here are some Montana-specific Gusto guides: 

Paige Smith Paige is a content marketing writer specializing in business, finance, and tech. She regularly writes for a number of B2B industry leaders, including fintech companies and small business lenders. See more of her work here:

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