Gianforte Receives Praise for Tax Relief
Governor Greg Gianforte received praise from industry leaders, business owners, and business advocates for his advocacy of a tax relief package, signed into law on March 13.
Fulfilling his campaign promise to address the priorities of Montanans by offering them the largest tax cut in the state’s history, which includes both immediate tax rebates and permanent, long-term tax relief.
Highlights of the tax package include:
- $500 million in permanent income tax relief, by lowering the income tax rate most Montanans pay from 6.75% to 5.9% and tripling the earned income tax credit to help lower-income working Montanans and incentivize work.
- Reforming the business equipment tax to eliminate the tax’s burden on more than 5,000 Montana small businesses, farms, and ranches, by increasing the exemption from $100,000 in 2021 to $1 million.
- Simplifying Montanan’s capital gains system to support families, homeowners, retirees, farmers, and ranchers, and making the state’s capital gains tax rates the fourth lowest in the nation.
In a statement released by the Governor’s office, the following industry leaders, business owners, and business advocates praised the package:
Grover Norquist, president of Americans for Tax Reform: “Governor Gianforte delivered a historic and game changing tax relief package that will provide a tax cut and a rate cut to income taxpayers across the state. Governor Gianforte, lawmakers, and many others worked together to create a brighter future for Montana.”
Editorial Board of The Wall Street Journal: “More than a dozen states that have cut tax rates lately have also slashed the number of income brackets. The result is a simpler and fairer tax code that combines a broad base with lower rates. The latest entrant is Montana, where lawmakers passed reforms Monday. The top income-tax rate will fall to 5.9% in 2024 from 6.75% now. Gov. Greg Gianforte called it ‘the largest tax cut in Montana history,’ and it builds on his 2021 cut that dropped the rate from 6.9%. The state’s tax code will also collapse to two brackets from seven. Thousands of families earning less than $41,000 will pay a lower 4.7% rate that was enacted on a delay in Mr. Gianforte’s first tax cut….Montana’s latest tax cut will help it keep pace with other western states….[Tax] rebates are better than adding new spending programs that could become permanent. But the cut in tax rates is better tax policy that points the state’s economy toward future success.”
Todd O’Hair, president and CEO of the Montana Chamber of Commerce: “The Montana Chamber applauds Gov. Gianforte’s steadfast commitment to improve Montana’s business climate. By raising the business equipment tax exemption ten-fold since taking office, and modernizing the corporate tax structure, he continues to position Montana competitively in today’s global marketplace. This, coupled with the permanent income tax and capital gains tax reductions, will help our hardworking Montanans, and again contribute to the attractiveness of the Treasure State over the long term.”
Cyndi Johnson, president of the Montana Farm Bureau Federation: “The Montana Farm Bureau thanks Governor Gianforte for signing these important tax bills into law. We appreciate that our governor and his administration understand that our state’s farmers and ranchers are not only essential producers of food and fiber but are small business owners with expensive equipment and non-liquid assets, as well as extensive expenses. This tax relief will truly help.”
Brad Griffin, president of the Montana Retail Association: “Congratulations to Governor Gianforte and the Montana Legislature for passing and signing into law six historic tax bills that will benefit the citizens and businesses of Montana. Taken together, these bills will help Montanans keep more of their hard-earned money and allow businesses to keep investing in their people and their facilities.”
Bryan Wood, president of Wood’s Powr-Grip: “As a multi-generational, family-owned manufacturing company, equipment and advancements in machining are necessary to keep our business competitive and successful. One of our biggest investments is in equipment, so lowering the tax we pay allows us to reinvest in our employees, our facilities and our equipment and helps keep Wood’s Powr Grip competitive in a global market. A big thank you to Governor Gianforte for making this issue a priority and to the Montana Chamber of Commerce, for their leadership in reducing taxes on Montana businesses.”
John Grande, president of the Montana Stockgrowers Association: “Montana cattle ranchers are the backbone of rural Montana and local economies. We thank Governor Gianforte for his vision and leadership in bringing tax relief to Montana ranch families and small businesses. This historic tax relief package makes a significant difference for many of our members and allows for ranchers to keep their hard-earned dollars to invest back into their businesses, their land, and our communities.”
Sarah Converse, executive director of the North Central Montana Economic Development District: “Governor Gianforte’s tax package benefits all of Montana. With more dollars in their pockets, our small businesses, ag producers, and hardworking families will be able to invest back in our rural areas.”
Adam Gilbertson, senior vice president of RDO Equipment: “With inflation driving costs up, we are pleased to see Governor Gianforte hold true to his commitment to send money back to business owners and job creators. The changes to the business equipment tax are especially helpful to encourage investment in growing Montana.”
Rebecca Meyers, on behalf of the Billings Chamber of Commerce: “Our members identified tax reform as a priority this legislative session. We are thankful to the governor for delivering historic tax relief that will significantly benefit our businesses, large and small. By increasing the business equipment tax threshold alone, over 500 Yellowstone County businesses will see a collective $1 million of tax relief. We think that’s a pretty good deal for business growth.”