Montana Gov. Gianforte Proposes Historic Tax Relief and Investment Plan

Gov. Gianforte proposes Montana's largest tax relief in history, prioritizing public safety, education, and infrastructure.

November 13, 2024

Governor Greg Gianforte announced that his biennial budget proposal for the 2025 Legislature will introduce the largest tax relief in Montana’s history, focusing on public safety, education, and infrastructure investments. Fresh off his recent reelection for a second term, Gianforte emphasized that the election results, which favored Republicans across state and federal offices, reflect Montanans’ desire for conservative leadership. He highlighted that his vision prioritizes job creation, opportunity, and the Montana way of life.

Gianforte’s budget proposal aims to enhance Montanan prosperity by reducing the state’s top income tax rate from 5.9% to 4.9% over two years, continuing the trend of tax reductions since he took office. “We can’t and shouldn’t rest on our laurels,” he stated, emphasizing the historic nature of the tax cut. The plan includes expanding the earned income tax credit, offering over $850 million in permanent tax relief. Additionally, it proposes raising the business equipment tax exemption to $3 million and eliminating the 3% administrative fee on vehicle registrations, saving Montanans $6 million annually.

The budget also addresses property tax relief, adopting many recommendations from the property tax task force. This includes a homestead rate cut projected to reduce property taxes by 15% for primary residences and 18% for small businesses, impacting over 200,000 homes and 33,000 businesses. Gianforte prioritized delivering this relief by 2025.

Back the Blue

Complementing tax relief, Gianforte’s budget emphasizes investments in public safety, education, and infrastructure, including $8 million for Montana Highway Patrol pay and equipment, and $6.5 million for corrections officers. It also funds more prosecutors, forensic scientists, judges, and victim support. To combat the opioid crisis, $8 million will be allocated to recovery initiatives, with nearly $2 million for drug treatment courts. A one-time $150 million expenditure will expand the state prison with two new pods, adding 500 beds.

Pro-Student, Pro-Parent, Pro-Teacher

Gianforte underscored the need to invest in K-12 education with a “pro-student, pro-parent, pro-teacher” agenda, allocating over $100 million to boost teacher pay, particularly for new educators, through the TEACH Act. The budget also increases the Big Sky Scholarship cap and allocates $1 million to promote phone-free school policies. An $81 million investment will address school infrastructure and maintenance.

Further budget highlights include enhancing housing supply, infrastructure, and state pension protection. The full budget, available Friday, will feature Medicaid expansion renewal with work requirements. Gianforte emphasized the budget’s focus on community health and fiscal responsibility, maintaining spending below inflation and preserving essential services.