Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Infrastructure Funding topic
No spam. Unsubscribe anytime.
Committee hears proposal for tax credit to encourage private gifts to public infrastructure
Summary
Senate Bill 267 would create a nonrefundable tax credit equal to 50% of the present value of charitable gifts to certified public infrastructure projects, up to $500,000; proponents say it unlocks private funding for local projects, while opponents warn of precedent and appropriation concerns.
Senate Bill 267, introduced by Senator Dave Fern, would create a tax credit to incentivize charitable gifts to public infrastructure projects, including health clinics, senior centers, libraries and museums. The sponsor described it as “somewhat of an infrastructure bridal” intended to encourage private investment in public facilities.
Senator Dave Fern, the bill sponsor, summarized the proposal’s core features and told the committee the credit would be administered pursuant to existing statutory framework (the bill text references 5‑4‑104). Fern described the proposed credit as nonrefundable and targeted: it would make available a credit equal to 50% of the present value of an eligible charitable gift, capped at $500,000 per taxpayer, to certified public infrastructure projects.
Proponents emphasized the community benefits of private gifts. Adrianna Hines, representing the Montana Infrastructure Coalition, called the proposal “a win win for Montana communities, local governments and taxpayers,” saying the tax credit could help fill local funding gaps without increasing taxes. Alan McCarvey described local examples—Lakeside’s Waterfront Park and Whitefish’s performing arts projects—where private gifts supported public facilities and local economic development.
Opponents raised concerns about precedent and fiscal effects. An opponent who registered in support of opposing the bill argued the structure risks deputizing taxpayers to steer public funding priorities and cautioned about potential appropriation problems as tax credits proliferate. Department of Revenue staff responded to technical questions on the fiscal note: Finn McMichael (Tax Policy and Research) and Brian Olsen (administration) were available to discuss implementation and the fiscal estimate.
Committee members pressed on implementation details and potential limits. Senators asked whether the credit should be limited to smaller municipal projects (parks, main street improvements) or targeted to avoid large capital projects for which the credit would be a small portion of total cost. Fern said he is open to amendments and noted the current draft has no statewide cap; the fiscal note, he said, was speculative and he chose not to sign it. Department staff described an anticipated certification process for projects, modeled in part on existing certification systems for scholarship organizations: a project sponsor would notify the Department of Revenue, and the department would certify eligibility before credits are issued.
Key technical details discussed in the hearing: - Proposed credit: 50% of the present value of a charitable gift to a certified public infrastructure project. - Maximum credit per taxpayer in bill text: $500,000. - Credit type: nonrefundable; eligibility for individual or corporate income taxpayers. - Administration: Department of Revenue certification process discussed; no cap on total program in current draft.
No committee vote occurred at the hearing. Senator Fern closed by thanking members and indicating he is open to amendments to address technical and policy concerns raised in questioning.
