New or Expanding Industries Property Tax Abatement
New or expanding industries approved by the local government may receive a reduced tax valuation on the property value increase caused by improvements or modernization.
Eligibility
Industries include business that:
- Manufacture, mill, mine, produce, process, or fabricate materials;
- Do similar work, using capital labor to turn raw materials into usable commercial products;
- Change materials into new products as defined as manufacturing in the 1987 Standard Industrial Classification Manual;
- Transport, warehouse, or distribute commercial products or materials, if 50% or more of gross sales or receipts are earned outside Montana; or
- Earn 50% or more annual gross income from sales outside Montana.
New industries are new to the jurisdiction and invest at least $125,000 in qualifying improvements within the area.
Expanding industries are businesses adding at least $50,00 worth of improvements within the area.
The local government must approve the abatement.
Form
To apply, complete the New or Expanding Industry Property Tax Abatement Application (PDF).
Property
The added improvements or modernized processes.
Benefit
A 50% reduction on the increased taxable value for the first five years, with a 10% lower reduction every year after:
| Year of Abatement | Reduction Amount |
|---|---|
| Years 1–5 | 50% reduction |
| Year 6 | 40% reduction |
| Year 7 | 30% reduction |
| Year 8 | 20% reduction |
| Year 9 | 10% reduction |
Limitations of the the Benefit
- The reduction only applies to the increase in taxable value caused by the improvements or modernization.
- This benefit applies to the mills levied for high school and elementary school district purposes and the mills levied by the local government.