Montana Code Annotated
Part 23. Specific Tax Credits and Tax Checkoffs
15-30-2359. Tax credit for trades education and training

15-30-2359. (Temporary) Tax credit for trades education and training. (1) Subject to the provisions of this section, an employer taxpayer is allowed a credit against the tax imposed by chapter 31 or this chapter for expenses incurred in the provision of certain education and training of employees for a trade profession who work or are anticipated to work in Montana for at least 6 months of the year in which the education or training occurs.
(2) The credit is equal to 50% of the qualified education and training expenses incurred by an employer for the benefit of an employee, not to exceed $2,000 per employee annually. An employer's total credit allowed under subsection (1) on an annual basis may not exceed $25,000.
(3) The credit may not exceed the employer's tax liability and may not be carried forward or carried back.
(4) The credit allowed under this section may not be claimed by an employer:
(a) if the employer has included the qualified education and training expenses upon which the amount of the credit was computed as a deduction in computing the tax imposed by chapter 31 or this chapter; or
(b) for any amount of qualified education and training expenses that are paid for with a grant or other similar program to provide money for education and training of employees.
(5) The credit permitted under this section must be applied to the tax year in which the employer incurs the qualified education and training expenses.
(6) If during any tax year a qualified education and training expense incurred by the employer is recovered by the employer, the employer shall:
(a) include as income the amount deducted in any prior year that is attributable to the qualified education and training expense incurred by the employer to the extent that the deduction reduced the employer's individual income tax or corporate income tax; and
(b) increase the amount of tax due under 15-30-2103 or 15-31-101 by the amount of the credit allowed in the tax year in which the credit was taken.
(7) The department may adopt rules, prepare forms, and maintain records that are necessary to implement this credit.
(8) For the purposes of this section, the following definitions apply:
(a) "Qualified education and training expenses" means those expenses actually incurred by the employer that are paid to a third party and include but are not limited to expenses for tuition, fees, books, supplies, or equipment required as part of a qualified training method to assist an employee of the employer in developing additional techniques and skills in a trade profession.
(b) "Qualified training method" means education and training provided in any of the following methods:
(i) classroom education or training in which the employee travels to the educator or trainer;
(ii) on-site education or training in which the educator or trainer travels to the business and customizes the education or training to the employer's needs; or
(iii) online education or training that is interactive, in which:
(A) the employee has access to the educator or trainer;
(B) the employee demonstrates or practices what the employee is learning; and
(C) the online education or training has the capability to provide suitable proof of completion.
(c) "Trade profession" means:
(i) boilermakers;
(ii) brick masons, block masons, and stone masons;
(iii) carpenters;
(iv) carpet installers;
(v) cement masons and terrazzo workers;
(vi) construction and building inspectors;
(vii) construction equipment operators;
(viii) construction laborers and helpers;
(ix) drywall and ceiling tile installers and tapers;
(x) electricians;
(xi) elevator installers and repairers;
(xii) glaziers;
(xiii) HVAC workers;
(xiv) logging and lumbering;
(xv) machinists;
(xvi) maintenance mechanics and auto mechanics;
(xvii) millwrights;
(xviii) oil and gas workers;
(xix) painters;
(xx) plumbers, pipefitters, and steamfitters;
(xxi) roofers;
(xxii) sheet metal workers;
(xxiii) structural iron and steel workers;
(xxiv) telecommunications tower technicians;
(xxv) tile and marble setters;
(xxvi) trucking;
(xxvii) water well drillers;
(xxviii) welders; and
(xxix) wind turbine technicians. (Terminates December 31, 2026--sec. 7, Ch. 248, L. 2021.)
History: En. Sec. 1, Ch. 248, L. 2021.

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