Governor Greg Gianforte of Montana has approved a bill aimed at offering tax relief to Montana businesses. The governor officially signed House Bill 210 amidst other state leaders at the future site of Confluence Apartments currently being constructed in Helena. Sponsored by the House Majority Leader, Rep. Steve Fitzpatrick, the bill provides a significant tax break by reducing the amount that businesses must contribute to the unemployment relief fund when its balance is full.

Each year, businesses are taxed to provide funds for unemployment insurance – a short-term relief for unemployed individuals. The new legislation offers a reduction in the amount of tax that businesses need to pay, and this could result in nearly $2 million in savings for the construction industry this year and close to $4 million the following year. Governor Gianforte stated that reduced costs would enable more investment and faster housing construction.

Montana’s Unemployment Insurance Fund currently holds more than $643 million, due in part to lower unemployment rates over the past few years. State Commissioner of Labor and Industry, Sarah Swanson, explained that because the unemployment trust fund is at a record high, they can handle lowering the tax rates on employers more responsibly. In addition, the bill bolsters the state’s power to detect fraudulent unemployment benefit claims by providing the Montana Department of Labor and Industry the authority to compare claimants’ details with those in the Motor Vehicle Division records.

The impact of HB 210 on the construction industry has already received positive appraisal from Bob Heberly, a vice president with Dick Anderson Construction. He estimates that the changes could save the company up to $38,000 annually. To give an even more practical illustration, the Confluence Apartments will feature 108 housing units in three buildings, and construction is set to finish by the end of this year.

Following this, businesses might need to understand how these changes relate to them. For more information about how HB 210 changes affect businesses, employers can contact their respective labor department. If you are an unemployed person affected by these changes or have questions about your unemployment benefits, the fastest way to get through to EDD would be to check the EDD’s website or directly contact the department via the EDD phone number. You can find more instructions at eddcaller.com.