Veteran Democratic Rep. Mary Caferro of Helena and freshman Republican Rep. Lukas Schubert from Kalispell are often on opposite sides of hot button issues.
But they’ve found themselves on the same team backing proposed child tax credits. They’re supporting each others’ bills in hopes of getting one across the finish line.
Caferro says families need more financial support. Her bill would offer $1,200 tax credits for children younger than six years old to households making $50,000 a year or less.
“With the cost of living being so high in Montana — housing, property taxes, gas, food — the child tax credit would go a long way for those families trying to raise children.”
Caferro’s House Bill 220 would cost the state about $31 million annually, according to the governor’s budget office.
Republican Rep. Tom Millet of Marion spoke in opposition, saying he can’t support a bill that redistributes tax revenue.
“It can reduce the incentive for parents to work harder or improve their financial situation independently.”
Schubert defended the bill and said a $1,200 annual check isn’t enough to replace income. He said Republicans should support policies that encourage people to have children.
“There’s very few pro-life policies that we can actually enact here in the Legislature. And this is something that will take away the economic disincentive towards keeping your child, basically.”
Schubert’s own proposal, House Bill 537, works differently. It would offer a $3,000 tax credit or a full income tax refund – whichever is less – to a family the year a child is born. Married couples who make up to $150,000 annually, and individuals who make up to $60,000, would be eligible.
Schubert noted his bill would cost less than Caferro’s at about $24 million per year. He said he’s open to lowering the income threshold lower, which would also lower the cost.
Republican Sen. Josh Kassmeier of Fort Benton is carrying a third tax credit through the upper chamber. It would offer a $600 credit for each child under 6, and $1,600 credits to workers at licensed child care facilities.
All bills are advancing.
