Senate Tax Committee advances several tax measures in executive actions; childcare credit and contractor relief pass

The Montana Senate Tax Committee conducted executive actions (EA) on multiple bills after hearing SB 558. Committee members amended, debated and moved several measures; the committee advanced some bills to the next stage, tabled at least one large-cost proposal and withdrew or delayed action on others pending fiscal notes.

Key outcomes

- Senate Bill 321 (childcare tax credit and related business credits) — Passed as amended. Senator Beard moved the bill as amended; the committee adopted two amendments that reduced the direct household credit from $1,200 to $600 and removed an investment-income disqualifier (among other technical changes). Final roll-call recorded: Vice Chair Beard — No; Vice Chair Fern — Yes; Senator Heyman — Yes; Senator Galt — No; Senator Yakovich — Yes (proxy recorded earlier as no in one tally, later recorded yes); Senator McCain — Yes; Senator Dunwell — Yes; Chair Hertz — No. Tally: 5 yes, 3 no. The sponsor and proponents framed the measure as a vehicle to support childcare access and workforce participation; opponents and some senators raised concerns about subsidy effects and fiscal cost.

- Senate Bill 536 (contractors’ gross receipts relief amendment) — Passed as amended (voice vote). Committee adopted an amendment to allow refunds or relief for certain construction firms that are effectively employee-owned (examples cited include ESOP-like arrangements). The amendment and final passage were approved by voice vote; a precise roll-call was not recorded in the transcript.

- Senate Bill 542 (two-year freeze on property reappraisal values) — Passed (voice vote; final announcement recorded as 7–1). Senator Galt moved the bill; the committee voice vote yielded a 7–1 outcome with Senator Dunwell recorded as opposed.

- Senate Bill 538 (business deduction / tax-change proposal) — Tabled. Committee members identified the bill’s estimated fiscal cost as large (~$54 million annually per discussion) and voted to table the measure to prioritize limited general fund resources.

- Senate Bill 549 (school-related K–12 education expense credit) — Amendment was introduced and then withdrawn; committee deferred further action to a later meeting pending sponsor input and legal review related to scope and constitutionality (members raised Espinosa-related questions about private-school funding and tax credits).

What the votes mean

The committee used EA to move a package of niche and targeted tax measures while pausing or tabling larger-cost, broadly scoped tax cuts until fiscal notes and further analyses are available. The child-care credit bill (SB 321) advanced with bipartisan support but not unanimity; the contractor relief measure (SB 536) moved forward after a narrowly tailored amendment intended to address stranded contractor gross receipts for certain employee-owned firms; the property reappraisal pause (SB 542) passed on broad committee support; and high-cost proposals were deferred.

Next steps

Several bills advanced from committee and will proceed in the legislative process; fiscal notes and additional analyses remain outstanding for several measures (committee asked staff and the Department of Revenue for updated fiscal estimates). The committee scheduled additional EA the following day to continue work as fiscal notes arrive.