Darby School District 9

All residents of the Darby School District recently received in the mail information regarding the Innovative Education Program Tax Credit.  This tax credit is available to taxpayers who donate to public schools for the purpose of providing supplemental funding to the Montana school district of their choice for innovative educational tax programs.  Here is a little more information about this program.  The state’s Education Donations Portal will open on January 15, 2025, and schools across the state will log on and try to obtain the tax credits based on their donations they have received. Once the state approves the donation, the taxpayer can then claim the donation as a credit on their tax return.  The way the program works for the 2025 tax year, is that individuals or businesses would submit a donation to the Darby School District by January 14, 2025 earmarked for the Innovative Education Program Tax Credit.  If the donations are accepted into the program the Montana Department of Revenue would then recognize that donation as part of the income tax that the person or business would pay the state for 2025.   Taxpayers’ donations would be paid in advance of when their 2025 income taxes are due(April 15, 2026), so donors would have to be able to cash flow the upfront donation and not receive credit until 2025 taxes are actually due.  This program is also available to businesses and individuals who make quarterly income tax payments, as well as for those who just pay their taxes once a year. The Innovative Education Program Tax Credit does not affect federal income tax and does not affect other tax-deductible contributions taxpayers may make.  Anyone wishing to donate to the school under this program can either contact the school at 406-821-1314 or 406-821-1307 to set up the contribution. On January 15, 2025 at 10am the Department of Revenue online portal opens, this is when Darby School District staff will log on and try to claim tax credits for the donation amount they have in hand before the state cap of $6 million is reached. The Darby School District will refund any donation that does not get accepted through the online portal.  If you have any further questions please contact the Darby admin office or Dona Losett at the Montana Department of Revenue 406-444-1991 or email Dona a dona.losett@mt.gov.  As always, we encourage you to consult your accountants, tax advisors, and/or financial planner before participating in this program.