Montana Legislature authorizes tax exemptions for new electricity and fiber optic facilities

House Bill 915, introduced in the Montana Legislature on March 28, 2025, aims to reshape the landscape of energy production and digital communication infrastructure in the state. The bill proposes significant tax exemptions for certain energy generation facilities and fiber optic installations, a move that could have far-reaching economic implications.

At its core, HB 915 seeks to incentivize the development of electric power generation facilities, including those powered by coal, gas, hydro, and solar energy. The bill defines these facilities broadly, encompassing various types of generating equipment and associated property. However, it explicitly excludes noncommercial and agricultural facilities, as well as those owned by individuals not primarily engaged in electricity generation.

One of the bill's most notable provisions is the five-year tax exemption for fiber optic and coaxial cable installations that began service after July 1, 2021. This exemption is designed to encourage the expansion of high-speed internet access across Montana, a critical issue in rural areas where connectivity remains a challenge.

Debate surrounding HB 915 has been intense, with proponents arguing that the bill will stimulate economic growth and job creation in the energy and tech sectors. Critics, however, express concerns about the potential loss of tax revenue and the implications for local governments that rely on these funds for essential services. Some lawmakers have proposed amendments to ensure that the benefits of the bill are equitably distributed and do not disproportionately favor large corporations.

The economic implications of HB 915 could be significant. By fostering investment in energy and communication infrastructure, the bill could enhance Montana's competitiveness and attract new businesses. However, the long-term effects on state revenue and public services remain to be seen.

As the legislative session progresses, stakeholders are closely monitoring the bill's trajectory. If passed, HB 915 could mark a pivotal shift in Montana's approach to energy production and digital connectivity, setting a precedent for future legislative efforts aimed at modernizing the state's infrastructure.