Montana College Contribution Credit
The Montana College Contribution Credit, also known as the Innovative Educational Program Tax Credit, allows taxpayers to claim a credit for donations made to Montana public school districts to support Innovative Educational Programs. This credit is designed to encourage supplemental funding for educational initiatives in Montana schools.
Eligibility and Credit Amount
- Taxpayers must donate to a Montana public school district for the purpose of funding Innovative Educational Programs.
- The credit is equal to the donation amount, up to $200,000 per taxpayer.
- Married couples filing jointly may claim up to $400,000 if both spouses make separate donations.
- Any unused portion of the credit may be carried forward for up to three years.
Requirements for Claiming the Credit
- The donation must be preapproved by the school district.
- Taxpayers must include a donation receipt provided by the school district with their tax return.
- The Credit Confirmation Code from the receipt must be entered on the tax form.
- If a charitable deduction was claimed on federal Schedule A for the same donation, it must be added back to federal taxable income when calculating the credit on Schedule I, Part I, line 5.
Additional Notes
Montana offers similar tax credits for qualified education contributions, including the Student Scholarship Organization Tax Credit. Both credits are available to individual and business taxpayers who donate to eligible education organizations.
Source:
Tax Credits for Qualified Education Contributions
Montana Individual Income Tax Return Form 2 Instructions
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions.