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Senate committee raises film tax-credit cap to $30 million and adds Montana-first sideboards
Summary
Senate Finance and Claims voted to raise the media tax‑credit annual cap from $12 million to $30 million with new carve-outs to prioritize Montana productions, domiciled companies and qualified facilities; supporters cited a multiplier effect, opponents warned of long-term budget risk.
Senator Greg Hurts introduced SB 326 to increase the annual cap on Montana's media (film) tax credit from $12,000,000 to $30,000,000. The sponsor presented fiscal modeling and an economic analysis that advocates say supports a higher cap because production spending in Montana generates multiplier effects in small communities.
Proponents from the Montana Media Coalition, Montana Chamber of Commerce, tourism organizations and local chambers said the credit has generated substantial direct spending ($334 million in the referenced period) and supports full‑time-equivalent jobs with above‑average wages. Industry witnesses described sideboards in the bill designed to keep credit dollars circulating in the state: reserving 60% of the increase for Montana productions, reserving 25% for matched capital investments in qualified facilities, setting a domiciled-company carve‑out for firms headquartered in Montana, and a 60% principal-photography hurdle to prevent minimal-shoot exploitation.
Opponents, including the Montana Budget and Policy Center, raised concerns about the long-term fiscal cost and structural balance, arguing funds might be better targeted to education, workforce training, childcare or infrastructure. Department of Revenue and Department of Commerce staff answered technical questions: the committee clarified that the media credit is nonrefundable (it offsets tax liability but does not generate cash refunds) and discussed carry-forward mechanics for tax claimants and productions.
Proponents argued the existing $12 million cap is effectively exhausted and that the bill's design (including reservation buckets and limits on carry-forward) would reduce the risk that out‑of‑state productions capture the benefits. The committee voted by roll call, 12–10, to advance SB 326 out of Senate Finance and Claims.
