Panel debates $500 tax credit for longtime residents; CPAs and budget analysts urge no

Representative Lucas Schubert opened House Bill 839 to the House Taxation Committee as a $500 income‑tax credit for residents who have lived in Montana at least 10 years and whose income is below $100,000. Schubert framed the credit as a conservative, modest reward for longtime residents and said a fiscal note would follow.

Opponents told the committee the bill raises technical and equity concerns. Alan Lloyd, executive director of the Montana Society of CPAs, testified he opposes new tax credits that complicate the tax code and argued the proposal treats similarly situated taxpayers differently based solely on residency tenure. Rose Bender of the Montana Budget and Policy Center also opposed the bill, arguing property‑tax relief should be prioritized over income‑tax credits.

During questioning, Representative Carlin asked whether the sponsor had seen a legal‑review note and cited U.S. Supreme Court holdings that residency‑based distributions can raise equal‑protection issues; Schubert responded that he disagreed with that legal reading and said he would pursue technical fixes and amendments as needed. Committee members also asked whether the $100,000 threshold applies per filer or jointly; Schubert said he would work an amendment to ensure married filing jointly would meet the sponsor's intent.

Schubert closed by urging a due pass and reiterated that a fiscal note was expected and likely to show substantial cost. The committee closed the hearing; no committee vote was recorded on HB 839 at that time.