Senate advances expanded film tax credit after hours of debate, 27-23

The Montana Senate voted 27-23 on second reading to advance Senate Bill 326, a bill expanding and restructuring the state's media tax credit program.

Senator Greg Hertz, sponsor of SB 326, told colleagues the state faces an immediate choice about keeping film production in Montana. "If we do nothing, that cap is already reserved up through 2029," Hertz said, describing the current $12 million cap and the bill92s plan to add $18 million and extend certain credits through 2045. He said 60% of the increase "is gonna be reserved for Montana filmmakers" and outlined carve-outs that include 10% for Montana independent films and 25% for Montana-qualified facilities.

Supporters said the credit keeps Montana competitive with other states and countries that offer incentives and that the industry has a multi-year pipeline of projects. Senator Fern said the bill reaches rural Montana and creates local career paths. Senator Novak and others described local economic boosts they have seen in communities such as Butte and Anaconda where productions have spent money on lodging, contractors and supplies.

Opponents warned the tax break favors a particular industry and risks driving up housing costs and service demand in small communities. Senator Manzilla said some localities have seen rent spikes and traffic hazards during productions, and several senators argued the program picks winners and losers among Montana businesses. Senators Vinton and others urged that broader tax relief to residents should come before expanding industry credits.

Sponsor Hertz and other backers said the bill includes guardrails to prioritize in-state hiring and facilities and adds incentives to hire veterans and enrolled tribal members. Hertz told senators the bill reserves credits to encourage Montana production jobs and facilities and said the Legislature had added measures to encourage workforce training and local facilities.

After roughly two hours of floor discussion and multiple disclosures of conflicts of interest by senators who had worked on or appeared in productions, the roll call on the committee motion to recommend SB 326 do pass recorded 27 yeas and 23 nays.

Votes and next steps: The bill was advanced on second reading and later was re-referred at the request of the Senate to Finance and Claims for further fiscal consideration and amendment work.

Why this matters: Backers say expanding the credit preserves film-related jobs and local economic activity; critics say it diverts public money to a narrow industry and can produce community disruptions. The bill's financial effects and how the reserved in-state share will be enforced were central questions during the floor debate.