Department Of Commerce

Financial Programs

Montana offers different financial incentives, including tax credits and exemptions, to encourage business investment and job creation.

  • Montana Growth Fund: Offering a competitive interest rate, this new loan participation program has a forgivable loan benefit to eligible businesses, including existing businesses and those seeking to expand here.
  • Big Sky Film Grant: This grant opportunity is for companies targeting the business-to-consumer market and developing eligible productions in Montana.
  • Commercial Property Assessed Clean Energy (C-PACE): Intended for commercial properties, C-PACE can finance energy efficiency and renewable energy improvements.
  • Community Development Block Grant (CDBG): The CDBG program makes fixed-rate financing available at low interest rates. It also offers payment deferrals, lower first-year payments, and interest-only payments.
  • Export Montana, Trade Show Assistance: Up to $3,000 is available to help businesses achieve out-of-state or international expansion by exhibiting at trade shows.
  • Growth Through Agriculture Program: Designed to promote ag diversification, this grant and loan program can be used for equipment, construction and promotion.
  • Indian Country Programs: Several resources are available, including the Indian Equity Fund Small Business Grant and the Tribal Business Planning Grant.
  • Microbusiness Financing Program: This program is designed for businesses with fewer than 10 full-time employees and less than $1 million in revenue who seek up to $100,000 in financing.
  • Industrial Development Bonds: This qualified private activity bond helps finance the construction, expansion or renovation of privately-owned manufacturing and processing facilities with tax-exempt advantages.
  • Montana Board of Investments: Partnering with Montana banks and economic development organizations, the Board offers loan programs that can be tailored to meet unique needs. These programs can enable access to lower, fixed-rate financing with customized loan terms. Job creation projects can further reduce interest rates up to 2.5%.
  • Montana Small Business Innovation Research or Small Business Technology Transfer Matching Funds Program (SBIR/STTR): For eligible companies working on a project for a federal agency, SBIR/STTR offers up to $60,000 matching grant funds in two phases.
  • Montana State Small Business Credit Initiative: This loan participation program through economic development organizations helps existing and new Montana businesses.
  • Business Equipment Exemption: Businesses receive an automatic $1 million tax exemption, reducing their property tax liabilities.
  • No State Sales Tax: This may be particularly useful for capital-intensive projects. The exemption includes electricity and natural gas purchases.
  • No Estate and Inheritance Tax: This tax exemption is popular for legacy planning.
  • No Gross Receipts Tax: According to the Tax Foundation, this tax is “often considered one of the most economically damaging taxes.”
  • No State Inventory Tax: This is particularly beneficial for manufacturers/retailers with larger inventories.
  • Entrepreneur Magnet Act: Exempts qualifying businesses from paying state capital gains tax on the sales of employee-owned stock.
  • Research and Development Exemption: A research and development firm domiciled in Montana for the first time is not subject to state corporate income taxes on net income during its first five taxable years of activity here.
  • Infrastructure User Fee Credit: For eligible businesses paying a local government infrastructure user fee, the total credit may not exceed the amount of the loan; the credit may be carried back three years, then carried forward seven.
  • Qualified Endowment Credit: A non-refundable credit of up to $10,000 is available to people/businesses making charitable donations to a qualified endowment.
  • Single Sales Factor Apportionment Formula: This becomes effective January 1, 2025.
  • Manufacturing Machinery, Fixtures and Equipment: This provides a special property tax abatement of up to 100% of taxable value.
  • Property Tax Abatement: This abatement reduces the taxable value of property or applies a reduced tax rate in nine abatement categories, including new industrial property, research and devlopment, new and expanding industries and building tenant improvements.
  • 2024 Annual Report Filing Fees: 2024 annual report filing fees are waived for all Montana businesses.
  • Montana LLC Operating Agreement Flexibility: Flexible profit distribution, meaning the operating agreement, can deviate from a straight allocation in accordance with ownership percentages providing greater LLC flexibility.
  • AccelerateMT: An innovative workforce training/upskilling program which aligns a company’s goals in partnership with leaders in academics, business and government.
  • Trade Education Employer Tax Credit: This creates a flexible, non-refundable employer tax credit for employer-paid trades education of up to $2,000/per employee; capped at $25,000 per employer.
  • Montana Apprenticeship Tax Credit: This state tax credit helps launch a new or expand a current training program. It may provide up to $1,500 for each new apprentice; special consideration is given for veterans.
  • Employer Job Growth Incentive Tax Credit: This non-refundable tax credit offsets the employer FICA contribution and may be claimed for up to seven years.

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