Montana lawmakers have introduced House Bill 942, a significant proposal aimed at establishing a child tax credit designed to provide financial relief to families across the state. The bill, introduced on March 31, 2025, seeks to offer a refundable credit of $1,000 for each qualifying child, with adjustments for inflation to ensure the benefit keeps pace with rising costs.

The primary goal of HB 942 is to alleviate the financial burden on families, particularly those with lower incomes. To qualify for the credit, taxpayers must provide proof of earned income and a valid Social Security number for each child claimed. However, the credit begins to phase out for individuals earning above $35,000 and couples earning above $65,000, reducing the benefit by $100 for every $1,000 over these thresholds.

Supporters of the bill argue that it addresses the pressing issue of child poverty in Montana, providing much-needed assistance to families struggling to make ends meet. Proponents believe that the credit could stimulate local economies as families are likely to spend the refunds on essential goods and services.

However, the bill has not been without controversy. Critics express concerns about the potential impact on state revenue and the long-term sustainability of such tax credits. Some lawmakers worry that the phased-out structure may leave out many middle-income families who also face financial challenges.

As the bill progresses through the legislative process, its implications could be far-reaching. If passed, HB 942 could significantly alter the financial landscape for many Montana families, potentially reducing child poverty rates and boosting local economies. The next steps will involve debates and possible amendments as lawmakers weigh the benefits against the fiscal responsibilities of the state.