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On September 20, 2025, Montana lawmakers announced a new proposal to provide tax cuts for small businesses in the state. The proposal comes as a response to calls for economic relief and support for local businesses struggling in the aftermath of the COVID-19 pandemic.The proposed tax cuts would specifically target small businesses with annual revenues of less than $1 million. Under the plan, these businesses would see a reduction in their corporate tax rate from 6.75% to 4.5%. Additionally, small businesses would be eligible for a tax credit equal to 10% of their annual payroll expenses, up to a maximum of $10,000.Lawmakers behind the proposal argue that the tax cuts are necessary to stimulate economic growth and create jobs in Montana. They believe that supporting small businesses will help to revitalize local economies and provide much-needed relief to struggling entrepreneurs.However, some critics have raised concerns about the potential impact of the tax cuts on the state budget. They worry that reducing corporate tax rates for small businesses could result in a loss of revenue for essential government services, such as education and healthcare.Despite these concerns, the proposal has garnered support from a bipartisan group of lawmakers and business organizations. Many believe that the tax cuts will incentivize small businesses to invest in their operations, hire more employees, and contribute to the state's overall economic recovery.If the proposal is approved by the Montana legislature, the tax cuts for small businesses could go into effect as early as 2026. Lawmakers hope that these measures will help to boost Montana's economy and provide much-needed support for local entrepreneurs in the years to come.