DTrim99 · Nov 3, 2026 · Nov 3, 2026 · Nov 3, 2026
diff --git a/changelog.d/statute-bugs-mt-disability-ehrc-elderly.fixed.md b/changelog.d/statute-bugs-mt-disability-ehrc-elderly.fixed.md
@@ -1 +1 @@
-End Montana's disability income exclusion with its 2024 repeal, count only the federal refundable credits a household actually received (by default the 2020 and 2021 Economic Impact Payments) in the elderly homeowner/renter credit's gross household income, and require that credit's claimant to meet the six-month owner, renter or lessee occupancy and nine-month residence tests (MCA 15-30-2338(1)(b)-(c)).
+End Montana's disability income exclusion with its 2024 repeal, count only the federal and Montana refundable credits a household actually received (by default the 2020 and 2021 Economic Impact Payments, and no Montana credits) in the elderly homeowner/renter credit's gross household income, and require that credit's claimant to meet the six-month owner, renter or lessee occupancy and nine-month residence tests (MCA 15-30-2338(1)(b)-(c)).
diff --git a/...rs/gov/states/mt/tax/income/credits/elderly_homeowner_or_renter/gross_income_sources.yaml b/...rs/gov/states/mt/tax/income/credits/elderly_homeowner_or_renter/gross_income_sources.yaml
@@ -83,17 +83,15 @@ values:
     # unemployment"; Schedule 2EC line 14 from 2024, the total received).
     - mt_elderly_homeowner_or_renter_credit_unemployment_compensation_addback
     # Refundable credits received (2023 schedule line 7, Schedule 2EC line 8
-    # from 2024): Montana's refundable credits other than this credit,
-    # and this credit as received during the year (ARM 42.4.301(2)(c)).
-    # Known gap: mt_refundable_credits_before_renter_credit is the Montana
-    # refundable credits on this year's return, which are paid after the
-    # year ends, not the Montana credits received during the year (MCA
-    # 15-30-2337(4)). Federal credits use receipts from 2017.
-    - mt_refundable_credits_before_renter_credit
+    # from 2024): this credit as received during the year (ARM
+    # 42.4.301(2)(c)). Before 2019 Montana had no other refundable credit;
+    # Montana credits received count from 2017, with the federal ones.
     - mt_elderly_homeowner_or_renter_credit_received
-  # ARM 42.4.301(2)(b), amended effective 11/10/2017, counts "federal
-  # refundable credits received"; the 2017 Form 2EC worksheet counts "any
-  # federal or state refundable credits".
+  # ARM 42.4.301(2)(b)-(c), amended effective 11/10/2017, counts "federal
+  # refundable credits received" and "any state refundable credits
+  # received"; the 2017 Form 2EC worksheet counts "any federal or state
+  # refundable credits". Both are receipts during the year, not the credits
+  # on this year's return (MCA 15-30-2337(4)).
   2017-01-01:
     - adjusted_gross_income_person
     - tax_exempt_interest_income
@@ -110,7 +108,7 @@ values:
     - gi_cash_assistance
     - tax_exempt_disability_benefits
     - mt_elderly_homeowner_or_renter_credit_unemployment_compensation_addback
-    - mt_refundable_credits_before_renter_credit
+    - mt_elderly_homeowner_or_renter_credit_state_refundable_credits
     - mt_elderly_homeowner_or_renter_credit_received
     - mt_elderly_homeowner_or_renter_credit_federal_refundable_credits
   # Actual rebate receipts count under the statutory nontaxable-income
@@ -133,7 +131,7 @@ values:
     - gi_cash_assistance
     - tax_exempt_disability_benefits
     - mt_elderly_homeowner_or_renter_credit_unemployment_compensation_addback
-    - mt_refundable_credits_before_renter_credit
+    - mt_elderly_homeowner_or_renter_credit_state_refundable_credits
     - mt_elderly_homeowner_or_renter_credit_received
     - mt_elderly_homeowner_or_renter_credit_federal_refundable_credits
     - mt_elderly_homeowner_or_renter_credit_property_tax_rebate_received

diff --git a/...tax/income/credits/elderly_homeowner_or_renter/mt_elderly_homeowner_or_renter_credit.yaml b/...tax/income/credits/elderly_homeowner_or_renter/mt_elderly_homeowner_or_renter_credit.yaml
@@ -230,12 +230,11 @@
     # Economic Impact Payments". Received in 2021: the 1_400 Economic Impact
     # Payment (the 2021 recovery rebate credit, which the model counts by
     # default). The 2021 federal EITC (ARPA, no qualifying child), 1_502 -
-    # 15.3% x (20_892.60 - 11_610) = 81.76, is paid in 2022, so it is not;
-    # the Montana EITC on the 2021 return, 3% = 2.45, counts as the model's
-    # Montana refundable credits. Line 10 = 20_892.60 + 1_400 + 2.45 =
-    # 22_295.05; line 12 = 15_995.05; line 14 = 799.75; line 19 = 863.08 -
-    # 799.75 = 63.33.
-    mt_elderly_homeowner_or_renter_credit: 63.33
+    # 15.3% x (20_892.60 - 11_610) = 81.76, is paid in 2022, so it is not,
+    # and nor is the Montana EITC on the 2021 return, 3% = 2.45. Line 10 =
+    # 20_892.60 + 1_400 = 22_292.60; line 12 = 15_992.60; line 14 = 799.63;
+    # line 19 = 863.08 - 799.63 = 63.45.
+    mt_elderly_homeowner_or_renter_credit: 63.45
 
 - name: MT EHRC uses the $12,600 exclusion from 2022 (HB 191)
   period: 2022
@@ -941,6 +940,8 @@
         employment_income: 10_000
         # Federal EITC refund received during 2024.
         mt_elderly_homeowner_or_renter_credit_federal_refundable_credits: 632
+        # Montana EITC refund received during 2024.
+        mt_elderly_homeowner_or_renter_credit_state_refundable_credits: 63.20
     tax_units:
       tax_unit1:
         members: [person1]
@@ -977,6 +978,8 @@
         employment_income: 10_000
         # Federal EITC and refundable CTC received during 2024.
         mt_elderly_homeowner_or_renter_credit_federal_refundable_credits: 4_525
+        # Montana EITC refund received during 2024.
+        mt_elderly_homeowner_or_renter_credit_state_refundable_credits: 340
       person3:
         age: 5
     tax_units:
@@ -1016,6 +1019,8 @@
         employment_income: 12_000
         # Federal EITC and refundable CTC received during 2024.
         mt_elderly_homeowner_or_renter_credit_federal_refundable_credits: 5_505
+        # Montana EITC refund received during 2024.
+        mt_elderly_homeowner_or_renter_credit_state_refundable_credits: 408
       person3:
         age: 5
     tax_units:
@@ -1086,6 +1091,8 @@
         employment_income: 10_000
         # Federal EITC refund received during 2023.
         mt_elderly_homeowner_or_renter_credit_federal_refundable_credits: 584.70
+        # Montana EITC refund received during 2023.
+        mt_elderly_homeowner_or_renter_credit_state_refundable_credits: 17.54
     tax_units:
       tax_unit1:
         members: [person1]
@@ -1724,3 +1731,42 @@
     # child's spouse; line 25 = 600; line 27 = 600; line 30 = 600.
     mt_elderly_homeowner_or_renter_credit_gross_rent: [4_000, 0]
     mt_elderly_homeowner_or_renter_credit: [600, 0, 0]
+
+- name: 2024 Schedule 2EC, this return's federal and Montana EITC are not refundable credits received in 2024 (taxsim 1492)
+  period: 2024
+  absolute_error_margin: 1
+  input:
+    people:
+      person1:
+        age: 63
+        employment_income: 10_057.14
+        social_security_retirement: 11_043.82
+        rent: 3_795.12
+    households:
+      household:
+        members: [person1]
+        state_code: MT
+  output:
+    # TaxAct Schedule 2EC line 18: 21,100. The 2024 federal EITC (632) and
+    # Montana EITC (63.20) are paid in 2025, so line 8 is 0.
+    mt_elderly_homeowner_or_renter_credit_state_refundable_credits: 0
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: 21_100.96
+    mt_elderly_homeowner_or_renter_credit: 237.73  # TaxAct line 30: 237
+
+- name: 2024 Schedule 2EC, a Montana EITC refund received in 2024 from the 2023 return counts on line 8
+  period: 2024
+  absolute_error_margin: 1
+  input:
+    people:
+      person1:
+        age: 63
+        employment_income: 10_057.14
+        social_security_retirement: 11_043.82
+        rent: 3_795.12
+        mt_elderly_homeowner_or_renter_credit_state_refundable_credits: 60
+    households:
+      household:
+        members: [person1]
+        state_code: MT
+  output:
+    mt_elderly_homeowner_or_renter_credit_gross_household_income: 21_160.96
diff --git a/...rly_homeowner_or_renter/mt_elderly_homeowner_or_renter_credit_gross_household_income.yaml b/...rly_homeowner_or_renter/mt_elderly_homeowner_or_renter_credit_gross_household_income.yaml
@@ -207,6 +207,8 @@
         employment_income: 10_000
         # Federal EITC refund received during 2024.
         mt_elderly_homeowner_or_renter_credit_federal_refundable_credits: 632
+        # Montana EITC refund received during 2024.
+        mt_elderly_homeowner_or_renter_credit_state_refundable_credits: 63.20
     tax_units:
       tax_unit1:
         members: [person1]
@@ -240,6 +242,8 @@
         employment_income: 10_000
         # Federal EITC and refundable CTC received during 2024.
         mt_elderly_homeowner_or_renter_credit_federal_refundable_credits: 4_525
+        # Montana EITC refund received during 2024.
+        mt_elderly_homeowner_or_renter_credit_state_refundable_credits: 340
       person3:
         age: 5
     tax_units:
@@ -531,6 +535,8 @@
         employment_income: 25_000
         # Federal EITC and refundable CTC received during 2024.
         mt_elderly_homeowner_or_renter_credit_federal_refundable_credits: 9_854.83
+        # Montana EITC refund received during 2024.
+        mt_elderly_homeowner_or_renter_credit_state_refundable_credits: 647.98
       person3:
         age: 5
       person4:

diff --git a/policyengine_us/tests/test_mt_elderly_credit_household_members.py b/policyengine_us/tests/test_mt_elderly_credit_household_members.py
@@ -151,7 +151,9 @@ def calculate(cases):
     dependent = np.asarray(simulation.calculate("is_tax_unit_dependent", YEAR))
     other_refundable_credits = np.asarray(
         simulation.calculate(
-            "mt_refundable_credits_before_renter_credit", YEAR, map_to="household"
+            "mt_elderly_homeowner_or_renter_credit_state_refundable_credits",
+            YEAR,
+            map_to="household",
         )
     )
     federal_refundable_credits = np.asarray(

diff --git a/policyengine_us/tests/test_mt_elderly_credit_nontaxable_income.py b/policyengine_us/tests/test_mt_elderly_credit_nontaxable_income.py
@@ -211,7 +211,10 @@ def by_household(variable, year):
                 "mt_elderly_homeowner_or_renter_credit_federal_refundable_credits",
                 year,
             )
-            + by_household("mt_refundable_credits_before_renter_credit", year),
+            + by_household(
+                "mt_elderly_homeowner_or_renter_credit_state_refundable_credits",
+                year,
+            ),
         }
         for year in YEARS
     }

diff --git a/policyengine_us/tests/test_mt_elderly_credit_refundable_credits.py b/policyengine_us/tests/test_mt_elderly_credit_refundable_credits.py
@@ -144,13 +144,13 @@ def assert_properties(cases):
 def test_worked_example():
     """2024 Schedule 2EC: the claimant's line 5 pension 20,000; the
     daughter's wages 10,000 (line 17). Her 2024 return has a federal EITC of
-    34% x 10,000 = 3,400 and a refundable child tax credit of min(1,700, 15%
-    x 7,500) = 1,125, paid in 2025, so they are not received in 2024. Line 8
-    counts the 4,525 of federal credits she received during 2024 and her
-    Montana EITC of 340. Line 18 = 34,865; line 22 = (34,865 - 12,600) x
-    0.05 = 1,113.25; line 27 = 2,000 - 1,113.25 = 886.75; line 30 = 886.75.
-    With nothing received, line 18 = 30,340, line 22 = 887 and line 30 =
-    1,113."""
+    34% x 10,000 = 3,400, a refundable child tax credit of min(1,700, 15% x
+    7,500) = 1,125 and a Montana EITC of 340, all paid in 2025, so none is
+    received in 2024. Line 8 counts the 4,525 of federal credits she
+    received during 2024. Line 18 = 34,525; line 22 = (34,525 - 12,600) x
+    0.05 = 1,096.25; line 27 = 2,000 - 1,096.25 = 903.75; line 30 = 903.75.
+    With nothing received, line 18 = 30,000, line 22 = 870 and line 30 =
+    1,130."""
     case = {
         "claimant_age": 70,
         "pension": 20_000,
@@ -166,10 +166,10 @@ def test_worked_example():
     z = calculate([case], received=False)
     assert z["federal_tax_unit"][0] == pytest.approx(4_525, abs=TOLERANCE)
     assert z["federal_person"][0] == 0
-    assert w["gross"][0] == pytest.approx(34_865, abs=TOLERANCE)
-    assert w["credit"][0] == pytest.approx(886.75, abs=TOLERANCE)
-    assert z["gross"][0] == pytest.approx(30_340, abs=TOLERANCE)
-    assert z["credit"][0] == pytest.approx(1_113, abs=TOLERANCE)
+    assert w["gross"][0] == pytest.approx(34_525, abs=TOLERANCE)
+    assert w["credit"][0] == pytest.approx(903.75, abs=TOLERANCE)
+    assert z["gross"][0] == pytest.approx(30_000, abs=TOLERANCE)
+    assert z["credit"][0] == pytest.approx(1_130, abs=TOLERANCE)
     assert_properties([case])
 
 

diff --git a/...rly_homeowner_or_renter/mt_elderly_homeowner_or_renter_credit_state_refundable_credits.py b/...rly_homeowner_or_renter/mt_elderly_homeowner_or_renter_credit_state_refundable_credits.py
@@ -0,0 +1,33 @@
+from policyengine_us.model_api import *
+
+
+class mt_elderly_homeowner_or_renter_credit_state_refundable_credits(Variable):
+    value_type = float
+    entity = Person
+    label = "Montana refundable credits received, in Montana elderly homeowner/renter credit gross household income"
+    documentation = (
+        "Montana refundable tax credit cash this person received during the "
+        "year, other than the elderly homeowner/renter credit, such as a "
+        "Montana earned income tax credit refund from the prior year's "
+        "return. Defaults to zero: the Montana credits claimed on this year's "
+        "return are paid after the year ends, so they do not establish a "
+        "receipt. The elderly homeowner/renter credit received enters "
+        "separately through mt_elderly_homeowner_or_renter_credit_received, "
+        "and the Montana property tax rebate received through "
+        "mt_elderly_homeowner_or_renter_credit_property_tax_rebate_received, "
+        "so leave both out of this amount."
+    )
+    unit = USD
+    definition_period = YEAR
+    defined_for = StateCode.MT
+    reference = (
+        # MCA 15-30-2337(4): gross household income is "all income received
+        # by all individuals of a household"
+        "https://mca.legmt.gov/bills/mca/title_0150/chapter_0300/part_0230/section_0370/0150-0300-0230-0370.html",
+        # ARM 42.4.301(2)(c): "any state refundable tax credits received"
+        "https://rules.mt.gov/api/policy-library-public/collections/aec52c46-128e-4279-9068-8af5d5432d74/policies/c90ea93a-03a2-4605-a0f8-f2f3760198bf/document/768c8344-24ee-4950-9d5e-9d8fc97ec0f7",
+        # 2024 Schedule 2EC, line 8: "Combine all the refundable credits
+        # received by all household members in 2024", including "the federal
+        # and Montana earned income tax credits"
+        "https://revenue.mt.gov/files/forms/Montana-Individual-Income-Tax-Return-Form-2-Instructions/2024_Montana_Individual_Income_Tax_Return_Form_2_Instructions.pdf#page=47",
+    )
Original file line number	Diff line number	Diff line change
		@@ -1 +1 @@
		End Montana's disability income exclusion with its 2024 repeal, count only the federal refundable credits a household actually received (by default the 2020 and 2021 Economic Impact Payments) in the elderly homeowner/renter credit's gross household income, and require that credit's claimant to meet the six-month owner, renter or lessee occupancy and nine-month residence tests (MCA 15-30-2338(1)(b)-(c)).
		End Montana's disability income exclusion with its 2024 repeal, count only the federal and Montana refundable credits a household actually received (by default the 2020 and 2021 Economic Impact Payments, and no Montana credits) in the elderly homeowner/renter credit's gross household income, and require that credit's claimant to meet the six-month owner, renter or lessee occupancy and nine-month residence tests (MCA 15-30-2338(1)(b)-(c)).