Committee raises film tax credit cap to $30M, adds Montana-first sideboards; opponents warn fiscal risk

Senator Greg Hertz sponsored Senate Bill 326 to raise Montana’s media tax-credit annual cap from $12 million to $30 million, a change supporters said is necessary to keep productions and associated economic activity in state.

Todd O’Hair, president and CEO of the Montana Chamber of Commerce, and other business and tourism witnesses described a multiplier effect from film production in Montana: hotels, caterers, carpenters, seamstresses and other small businesses often see sustained revenue spikes while productions are in a community. "We see a massive sort of multiplier effect," O’Hair told the committee, citing local examples.

Proponents provided fiscal analysis and an industry study showing about $334 million in direct production spending between July 2022 and May 2024 (an average of roughly $167 million annually), and testimony said the current $12 million cap has been fully reserved and that without increasing the cap Montana would risk losing productions and associated jobs. Linwood Fields of the Montana Media Coalition and Sean Patrick Higgins of Storyhouse Pictures described proposed "Montana-first" sideboards: supporters said a portion of the raised cap would be reserved for Montana productions, for qualified brick-and-mortar facilities, and for companies domiciled in Montana. Higgins said those sideboards would encourage companies to domicile in-state and create ongoing corporate and payroll tax base growth.

The Department of Revenue and Department of Commerce provided informational testimony on the fiscal note and program administration. Thomas Fox of the Department of Revenue explained the existing application and verification process for credits, and noted the program has a multi-year carry-forward mechanism that affects when credits are claimed.

Opponents included the Montana Budget and Policy Center, which argued the state faces long-term structural budget pressures and urged legislators to invest in more cost-effective workforce and infrastructure priorities. Rose Bender, representing that group, told the committee she opposed the bill because of long-term fiscal risks.

In executive action the committee recommended do-pass on Senate Bill 326; roll-call recorded 12 yeas and 10 nays. Supporters said the higher cap and sideboards are designed to keep spending and jobs in Montana and to encourage local headquarters and facilities investment; critics warned the state must consider structural fiscal balance when expanding refundable/nonrefundable credits.