Business Tax Incentives
The Department of Revenue maintains information on tax incentives for businesses on its web page which is linked below. There is a long list followed by short narrative sections on the main current tax incentives and credits available. It is best to contact the Department of Revenue directly since each legislative session brings changes and new programs that may not be listed immediately. Local tax incentives also usually affect state taxes and have to go through DOR for review and approval so it is best to also check the list for local tax break possibilities.
State Tax Incentives
Department of Revenue - The business tax incentive section
Local Tax Incentives
The State of Montana has a number of business tax incentive programs which are briefly described in the Department of Revenue web page link above. Many tax related programs are also available through local governments such as the tax increment financing program.
Creation of Tax Increment Financing District
State law provides for the creation of a tax increment financing industrial district for industrial development projects. A local government may issue bonds for a wide variety of development purposes such as; financing land acquisition, industrial infrastructure, rail spurs, buildings, and personal property related to the public improvements.
The incremental increase in the tax base over the unimproved value before the project was developed can be committed to repayment of the bonds. The bond financing can essentially be considered a grant by the business because taxes paid will directly benefit the district. The actual amount of bond financing available is based on the ability to repay the bonds with the incremental value of the tax increase.
