The state created a tax credit program for education during the 2021 Legislature and the day to claim those dollar-for-dollar tax credit was Jan. 17.
The program allows residents to make a cash donation to their local public schools and individuals or companies can contribute up to $200,000 per year for educational programs. Married taxpayers filing jointly may take a tax credit of up to $400,000 for each tax credit, according to the Montana Department of Revenue.
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Great Falls Public School officials are asking locals to consider using the tax credit program to support GFPS and encourage all donors to contact their financial planners/advisors before participating in this program.
The total tax credit amount that can be claimed statewide in 2024 is $5 million.
In 2022, the $1 million credit was claimed in less than six minutes.
In 2023, most of the $2 million credit was claimed immediately.
The max GFPS could claim was $1 million and the district hit that amount.
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Brian Patrick, GFPS’ business operations manager, said that the credits go quickly and he was nervous about it.
He said this year, about $2 million was claimed in the first two minutes.
Donors can chose between the elementary and high school levels and for GFPS, donors gave $371,400 to the elementary and $628,600 to the high school level, Patrick told The Electric.
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For 2025 and beyond, if 80 percent of the previous year’s credits are claimed, the aggregate amount will increase by 20 percent; otherwise, the aggregate amount will remain the same as the previous year, according to DOR.
In 2023, there were $68,500 in credits that opened due to donors pulling back their original donation, Patrick said.
Anders Blewett had heard about the available tax credit and was able to give the district $66,000 since someone else with a $2,500 donation got ahead in the system by hundredths of a second, Patrick said.
In recent months, Blewett made an effort to raise awareness of the credit and encourage people to use it to support GFPS.
This year, 35 donors used their credit to support GFPS.
Patrick said that some are regular supporters of the district, but some were new.
The district made a greater effort to make the public aware of the tax credit program this year, but Patrick credited Blewett as the driving force in getting more donors.
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The credits are available on first come, first served basis until the cap is reached.
The funds will be directed to GFPS innovative educational programs including:
- transformational and advanced learning opportunities for students;
- programs, services and equipment for students with disabilities;
- work-based learning partnership for our students;
- post-secondary credit or career certifications for our students; and
- technologies that improve student experiences and opportunities.
Patrick said that district administration has begun discussions on how to use the money within the legal requirements.
“I’m proud of our community for stepping up and doing things to provide better opportunities for our students,” Patrick said. “We want to honor their donations so we’ll work hard to do something appropriate and then notify them with what we’ve done.”
The tax credit program opens in mid-January annually and Patrick encouraged anyone interested in using the program next year to talk to their financial advisers.
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Only public schools can access the state system to claim the tax credits so a check or cashiers check has to be provided to GFPS by the time the program window opens on Jan. 17.
More information on the program from the DOR is available here.
