House Bill 895, introduced in the Montana Legislature on March 28, 2025, is making waves with its proposed tax deductions aimed at bolstering education savings and supporting small businesses. The bill seeks to allow individuals to deduct contributions to education savings accounts and certain business expenses, a move that could significantly impact Montana taxpayers.

At the heart of HB 895 is a provision that permits individuals to reduce their taxable income by up to $3,000 for contributions made to the Montana family education savings program or similar programs from other states. This deduction is available to both individual taxpayers and married couples, potentially encouraging more families to invest in their children's education. The bill also extends similar benefits to contributions made under the Montana achieving a better life experience (ABLE) program, which supports individuals with disabilities.

In addition to education savings, the bill addresses business expenses by allowing deductions for wages and salaries paid by businesses that have opted for federal tax credits. This provision aims to alleviate some of the financial burdens on small businesses, particularly in a post-pandemic economy where many are still recovering.

However, the bill has sparked debates among lawmakers. Critics argue that while the intentions are noble, the financial implications for the state budget could be significant, potentially leading to reduced funding for essential services. Proponents, on the other hand, emphasize the long-term benefits of investing in education and supporting local businesses, arguing that these measures could stimulate economic growth.

As discussions continue, the bill's future remains uncertain. If passed, HB 895 could reshape the financial landscape for many Montanans, making education more accessible and providing much-needed relief to small businesses. The legislature is expected to deliberate further on the bill, weighing its potential benefits against the fiscal responsibilities of the state.