Daines Works to Provide Tax Relief for Montana Farmers, Small Businesses, Families and Tribes

WASHINGTON, D.C. — On “Tax Relief Tuesday,” Senator Steve Daines spoke out on the need to pass bipartisan, comprehensive solutions that permanently protect Montana families, famers and ranchers, small businesses and tribes from burdensome and uncertain tax hikes.

Daines emphasized his continued commitment to working toward reforms that end Washington’s habit of passing last-minute extensions of critical tax provisions and instead provide the long-term certainty needed to generate new economic investment and innovation in Montana.

“Our tax code is nearly five times as long as the Bible, but with none of the good news,” Daines stated. “Congress needs to provide hardworking small businesses, farmers, ranchers, tribes and families long-term certainty in planning for the future and not continue to govern by crisis. As Congress moves towards comprehensive tax reform, we need to ensure that the tax code is fairer, simpler and works for all hardworking Montanans.”

Daines has long worked to provide Montanans with long-term certainty on numerous tax provisions. Important Montana provisions that are awaiting Congressional action include:

Indian Coal Production Tax Credit (ICPTC): The ICPTC provides a crucial tax incentive to level the playing field for future development of the tribal coal resources that are currently subject to more regulatory requirements than comparable development on private, state or federal lands. The credit protects the economic viability of existing tribal coal mining projects, which support much-needed tribal jobs and provide a major source of non-federal revenue for coal-producing tribes. Daines and Senator Jon Tester introduced legislation to permanently extend the ICPTC on May 18, 2015.

New Markets Tax Credit (NMTC): The NMTC attracts capital to low-income communities by providing private investors with a 39 percent federal tax credit for investments made in businesses or economic development projects. The NMTC program can be credited directly or indirectly with the creation of over 1,000 construction jobs and over 700 full time positions. More than 13 businesses in Montana have received financing from the NMTC since 2003. Daines is a cosponsor of the New Markets Tax Credit Extension Act of 2015 that would make permanent the NMTC program.

Work Opportunity Tax Credit: The provision provides businesses with an incentive to hire otherwise disadvantaged job applicants who have faced barriers to employment, including veterans.  

Section 179: The provision reduces the initial cost of equipment purchases and encourages capital investment growth. The credit allows farmers, ranchers and small businesses to immediately deduct their equipment purchases up to $500,000 rather than depreciation over an extended period.

Conservation Easement Tax Incentive: The provision encourages landowners to donate their land and allow for public access and enjoyment. The changes include both increasing the deduction size limit and extending the deduction carry-forward period from 5-years to 15-years. Daines is a cosponsor of the Conservation Easement Incentive Act of 2015 that would make the provision permanent.