In a press conference held on February 18, 2026, Governor Jane Smith announced several changes to Montana's business tax laws that are set to take effect on July 1st of this year. The changes are part of a larger effort to stimulate economic growth and make the state more competitive for businesses.One of the key changes announced by Governor Smith is a reduction in the corporate income tax rate from 6.75% to 6.5%. This reduction is aimed at attracting more businesses to the state and encouraging existing businesses to expand their operations. Additionally, small businesses with annual gross receipts of less than $500,000 will now be exempt from paying the corporate income tax altogether.Governor Smith also announced changes to the business equipment tax, which will see a reduction in the tax rate for certain industries such as manufacturing and agriculture. This move is intended to incentivize investment in new equipment and technology, leading to increased productivity and efficiency in these sectors.Another significant change is the introduction of a tax credit for businesses that hire veterans. This credit will provide a financial incentive for businesses to hire and retain veterans, who often face challenges when transitioning to civilian employment. The credit will be equal to 10% of the veteran employee's salary, up to a maximum of $5,000 per year.In addition to these changes, Governor Smith also announced plans to streamline the business registration process and reduce red tape for businesses looking to establish or expand operations in Montana. This will include the implementation of an online portal for business registration, making it easier and more convenient for entrepreneurs to start and grow their businesses in the state.Overall, these changes to Montana's business tax laws are expected to have a positive impact on the state's economy, attracting new businesses, encouraging investment, and creating jobs for residents. Governor Smith expressed confidence that these measures will help Montana remain competitive in the ever-evolving business landscape and position the state for long-term economic growth.