Trades Education and Training Tax Credit
Employers may take an income tax credit for the expenses incurred in providing employees with education and training for a trade profession.
Eligibility
This credit is for employers that incur qualified expenses providing eligible employees with education and training for a trade profession.
Qualifying Expenses
Qualifying expenses are paid by the employer to an unrelated third party for tuition, fees, books, supplies, or equipment to assist an employee in developing additional techniques and skills in a trade profession using a qualified training method.
Qualifying expenses must be for employees who work or are anticipated to work in Montana for at least 6 months of the year of the education or training.
Eligible Trade Professions
Qualified Training Methods
A qualified training method is any of the following methods:
- Classroom education or training,
- On-site education or training, and
- Online education or training.
Additional Rules for Qualifying Expenses
The employer must add back any qualifying expenses taken on the federal return to the Montana return to claim the Montana tax credit. Qualifying expenses cannot be paid for with a grant or other similar program.
Benefit
The credit is equal to 50% of the cost of qualifying trades education or training expenses incurred during the tax year, not to exceed $2,000 per employee and $25,000 total annually.
If the employer is a pass-through entity, the credit is calculated at the entity level and then attributed to owners based on their ownership percentage.
Carryover
This credit cannot be carried back or forward.