Committee hears proposal to create additional state charitable deduction; fiscal cost questioned

The Senate Tax Committee heard Senate Bill 157, sponsored by Senator Daniel Emerich of Great Falls, which would allow an additional charitable deduction on Montana income tax returns. The bill proposes a variable deduction — described by the sponsor as a 50% benefit — that would apply differently depending on whether a taxpayer itemizes on a federal return or claims the federal standard deduction.

Senator Daniel Emerich opened the hearing by saying the bill is aimed at incentivizing philanthropy. He described the proposal as offering “a 50% tax deduction for charitable donations,” and said the additional deduction would be calculated based on the filer’s federal return treatment so that those taking the federal standard deduction would be eligible for…