HB 243 would create a refundable Montana income tax credit for qualified volunteer emergency first responders. Eligible taxpayers would be those who provided active, uncompensated volunteer service during the tax year in specified roles, including volunteer fire company members, emergency medical service volunteers, auxiliary/reserve/special services officers, volunteer firefighters, volunteer emergency care providers, and air search and rescue volunteers. The credit would equal the lesser of $15 per hour of volunteer service or $1,500, and a claimant would need to document hours worked on forms provided by the Department of Revenue.
Because the credit is refundable, a taxpayer could receive the benefit even if they owe no income tax, and any credit amount above tax liability would be paid out as a refund. The bill states its purpose is to retain existing volunteers and recruit new ones. It would apply to income tax years beginning on or after January 1, 2026, and it would be codified within Montana’s individual income tax provisions in Title 15, chapter 30.
Impact
The bill would amend Montana tax law by adding a new refundable income tax credit for volunteer emergency first responders and by updating the state’s tax-credit review statute, 15-30-2303, to include this new credit in the list of credits subject to periodic legislative review. It would affect volunteer firefighters, EMS volunteers, reserve and auxiliary officers, volunteer emergency care providers, and air search and rescue volunteers, while also creating administrative duties for the Department of Revenue to verify claimed volunteer hours. As a refundable credit, it would have a direct fiscal impact on state revenues and could generate payments to eligible volunteers even when they have no tax liability.
Sentiment
The available voting history suggests the bill had some support but also notable resistance. It received a 13-8 vote on a motion to table in the House Taxation Committee, and the bill ultimately died in process. That pattern indicates the proposal was viewed favorably by some lawmakers as a way to support emergency volunteers, but not enough members were willing to advance it. No committee transcript is available here, so the recorded vote is the main indicator of sentiment.
Contention
The main points of contention likely centered on the cost and structure of the credit. Because the credit is refundable and can be claimed even with no taxable income, opponents may have viewed it as a direct expenditure of state funds rather than a traditional tax reduction. The per-hour design and the $1,500 cap may also have raised questions about fairness, verification of volunteer hours, and whether the credit would effectively recruit or retain volunteers. Supporters, by contrast, appear to have framed the bill as a targeted incentive for volunteer first responders and rural emergency services.
In volunteer firefighters, repealing provisions relating to employment sanctions; and providing for volunteer emergency responders employer tax credit.