Governor secures tax cut for MT businesses
Montana businesses to save $250 million over next decade
courtesy photo
Gov. Gianforte (right) signs House Bill 210 with Secretary Jacobsen, Bob Heberly, Commissioner Swanson, Rep. Fitzpatrick, and Rep Buttrey (from left to right).
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News from the office of Governor Gianforte
HELENA - Joining Montana Department of Labor & Industry (DLI) Commissioner Sarah Swanson, Governor Greg Gianforte recently celebrated a $250 million tax cut for businesses.
“As a businessman, I know how high taxes can hinder the ability of small businesses to expand and invest in their operations,” Gov. Gianforte said. “Thanks to our pro-jobs, pro-family policies, Montana is experiencing a historic stretch of low unemployment. With this tax cut, we are creating an environment where more Montanans can thrive.”
Signing into law House Bill 210, sponsored by Rep. Steve Fitzpatrick, R-Great Falls, the governor reduced the unemployment insurance (UI) tax burden on employers, resulting in a total annual estimated savings of $250 million through the next decade. The UI tax is paid by employers to fund the state’s unemployment system.
House Bill 210 is the culmination of year-long effort spearheaded by DLI to review the state’s UI tax rates and recommend changes to reduce the rates for businesses. Over the course of its review, the department determined that the UI trust is strong, solvent, and secure with a record high balance of $643 million. Thanks to 44 months of historically low unemployment, the department proposed reducing the rates so that Montana businesses could invest in their operations.
Holding a signing ceremony for the bill at a Dick Anderson Construction site in Helena, the governor joined Commissioner Swanson, Rep. Fitzpatrick, Chair of the House Business and Labor Committee Rep. Ed Buttrey, R-Great Falls, Secretary of State Christi Jacobsen, and Bob Heberly of Dick Anderson Construction to speak to the projected tax cuts.
“When you want to talk about real results, our best calculation projects that this is going to save Dick Anderson Construction around $38,000 annually which allows us to invest back in our businesses, invest back in our future, and put towards our goal of growing our construction business,” said Bob Heberly, the Helena Vice President of Dick Anderson Construction.
The three industries with the highest estimated savings include construction, professional and technical services, and retail trade. Savings for the construction industry is projected to be over $13 million through Fiscal Year 2029.
“One of our priorities of the Republican caucus was tax reform, and this is part of that package of bills so it’s very exciting that we’ve got this here today. Really the credit goes to the Department of Labor, Commissioner Swanson, and all the work she’s done – this is a tremendous package, from the reduction in taxable rate to the fraud prevention,” Rep. Fitzpatrick said.
“I’d like to applaud the governor, the Gianforte administration, Commissioner Swanson, and the department for working with us to bring forth this legislation. At the end of the day, it’s all about bringing money back into our Montana businesses which then benefits those businesses, their workers, and their families,” Rep. Buttrey said.
Buttrey continued, “As the Business and Labor Chair, one of the most exciting things we can do is to help support good tax reform and help put money back in the pockets of Montanans.”
In addition to historic tax relief, the bill strengthens fraud prevention at DLI and improves system operations.
Speaking to the impact of the fraud protections, Commissioner Swanson said, “With real-time ID verification through the Department of Justice, we can stop fraud earlier by ensuring that applicants are who they say they are, saving our employers time and money,” Commissioner Swanson said.
The commissioner added, “Most importantly, these reforms are delivered without restricting or reducing benefits to Montana’s workers. Workers are still protected, and our unemployment system remains strong, stable, and sustainable. House Bill 210 delivers lower costs for employers, stronger fraud protection with no impact on worker benefits.”
“The Montana Department of Justice is happy to work with the Department of Labor and Industry to combat unemployment insurance fraud. This new law will allow us to save money and protect Montanans private information,” Attorney General Austin Knudsen said.
Speaking to the support the bill provides for business, Secretary Jacobsen added, “We’ve had record business growth in the state of Montana under Republican leadership in the last four years. In 2024, we had over 64,000 new businesses in the state. This is just a continued move to have historic tax cuts for Montana businesses and getting government out of the way so Montana businesses can thrive.”
Concluding the press conference, the governor said, “I thank the members of the legislature that voted for this measure as part of our continued commitment to make Montana the best place to live, work, and raise a family.”
Last week, the governor announced Montana’s unemployment rate fell to 2.7% in March, marking the sixth consecutive month of unemployment below 3%. Additionally, last year, Montanans created nearly 64,000 businesses, a new record surpassing the one set in 2023.
