Tax proposal would cut credits for alternative energy, economic tools, among others

A bill in the state Senate aimed at simplifying Montana’s tax code would cut 11 tax credits and reduce the number of different tax rates from seven to two, but critics worry the number crunching loses sight of those credits’ social benefits.

Senate Bill 171’s sponsor, Sen. Bruce Tutvedt, R-Kalispell, told the Senate Taxation Committee on Thursday morning that the bill was meant to vastly simplify the state’s tax code.

In particular, the bill would eliminate tax credits for businesses that locate in empowerment zones — areas designated for economic development, often in places where industry has lagged.

The bill would also cut tax credits for alternative energy programs and energy conservation practices, as well as deductions or credits for purchases of recyclable material or property used for recycling.

Daniel DeMay, Chronicle Staff Writer

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