Innovative Educational Programs Tax Credit

The Montana Legislature passed House Bill 279 in 2021. This bill allowed Montana taxpayers to receive a dollar-for-dollar credit on their state income taxes, up to $200,000 per year, for donations to Montana public school districts to support Innovative Educational Programs. The response to this opportunity in its first year was huge and has continued to grow. Last year individual Montana taxpayers donated $6 million to our public schools. In the coming year, the state-wide tax credit limit will increase to $7.2 million. Donated amounts may not exceed the taxpayer’s income tax liability, but may be carried forward for 3 years.

YOUR donation can help MCPS expand our innovative educational programs that benefit local students through enhanced:

• Transformational and advanced learning opportunities
• Programs, services and equipment for students with disabilities
• Work-based learning partnerships for students
• Post-secondary credits and/or career certifications for students
• Technologies that improve student experiences and opportunities

In its first year, Montanans were so excited to donate to their local public schools that the 2022 credit limit of $1 million was reached in the first 6 minutes of the Department of Revenue (DOR)’s donation portal opening. Twenty-three taxpayers received credits and eight school districts received donated funds. Due to the overwhelming popularity of this program, the procedures to accept donations were modified for future school years. School districts may begin entering donations into the portal on January 21, 2026 until the $7.2 million credit limit is exhausted.