Big Benefits In Big Sky Country From Tax Reform

Montana Small Businesses Hiring New Workers, Investing In Their Businesses

“Sen. Steve Daines, R-Mont., spent Tuesday and Wednesday touring breweries and other small businesses across the state in an effort to tout the federal tax reform bill, called the Tax Cuts and Jobs Act, which was passed by Congress and signed into law in December. Part of that legislation was the Craft Beverage Modernization and Tax Reform Act, which was cosponsored by Daines …” (“Daines Tours Montana Breweries, Timber Mills And Businesses To Tout Tax Bill,” Missoulian, 2/21/2018)

• SEN. DAINES: “We’re second per capita for breweries in the nation … So the excise tax fell by 50 percent, combined with the rate cuts for small businesses, and just chatting with folks here at Big Sky [Brewing] it’s a significant six-figure kind of savings for them, a few hundred thousand dollars a year. I asked them, well, what are you going to do with that? They said, well, two things: Continue to invest in our equipment and (our) employees, specifically higher bonuses for employees.” (“Daines Tours Montana Breweries, Timber Mills And Businesses To Tout Tax Bill,” Missoulian, 2/21/2018)

“Maddie Mason, a sales representative for Philipsburg Brewing, said the brewery expects to produce 5,000 barrels this year and they are growing. ‘We will probably save $15,000 due to the new tax bill,’ she said. ‘That’s not a full-time staff person, but it definitely helps ease some of the payments we have on equipment and so forth. So we’ll use the money probably for a combination of raises for the staff as well as some of the equipment we’re investing in.’” (“Daines Tours Montana Breweries, Timber Mills And Businesses To Tout Tax Bill,” Missoulian, 2/21/2018)

• “Nolan Smith, the president of the Montana Brewers Association, pointed out that what’s good for breweries is good for Montana farmers. ‘This reduction in taxes will allow Montana brewers to invest in their businesses thus creating more craft brewing jobs and supporting Montana hops and barley growers,’ he said in a statement.” (“Daines Tours Montana Breweries, Timber Mills And Businesses To Tout Tax Bill,” Missoulian, 2/21/2018)

“Livingston’s Printing For Less (PFL) held a ceremonial groundbreaking event Friday for its new 55,000-square-foot digital printing and fulfillment center. The company plans to add 100 new employees once the new center is complete. Just this past year it added 80 new positions at its Livingston location. ‘We’re obviously optimistic about our own future because we’re investing millions in a new facility,’ said PFL Founder and CEO Andrew Fields.” (“Montana Company Expanding, Plans To Add 100 Jobs,” MTN News, 6/10/2018)

• “PFL currently employs just under 300 people at its Livingston location who produce printed orders off their online site or work with customers on creating automated marketing materials. Fields attributes the expansion on a strong economy that’s favorable for new investment. He says it can be in part attributed to tax cuts recently approved at the federal level.” (“Montana Company Expanding, Plans To Add 100 Jobs,” MTN News, 6/10/2018)

Wal-Mart, ‘The State’s Third-Largest Employer,’ Gives ‘More Than $3.8 Million In Pay Increases And Bonuses To 3,340 Of Its Montana Workers’

“Wal-Mart will give more than $3.8 million in pay increases and bonuses to 3,340 of its Montana workers as part of its plan to raise its starting hourly wage nationwide to $11 in a move that company officials credited to recent tax reforms passed in Congress. Wal-Mart, the state’s third-largest employer, also said Monday it would provide a one-time cash bonus for $1,000 to eligible associates as it expands its benefits.” (“Wal-Mart Announces Wage Hikes, Bonuses For Montana Workers,” Great Falls Tribune, 1/24/2018)

• “‘These dollars are coming from the tax savings that the company is realizing from recent legislation,’ said Tiffany Wilson, Wal-Mart communications director. ‘With this new tax savings, we wanted to reward our associates and say thank you for all of their hard work.’” (“Wal-Mart Announces Wage Hikes, Bonuses For Montana Workers,” Great Falls Tribune, 1/24/2018)

“Craig Doud, market manager for Wal-Mart for western Montana, and Angela Powell, manager of the Wal-Mart on 10th Avenue South, said workers were more than happy about the news. ‘I was ecstatic, the associates are ecstatic,’ Doud said. ‘Everyone is excited about this. It’s a great thing for Walmart.’ … ‘It was an opportunity to take care of our associates,’ he said, adding it came about because of the recent federal tax reform and the company appreciating ‘what our associates do for us.’” (“Wal-Mart Announces Wage Hikes, Bonuses For Montana Workers,” Great Falls Tribune, 1/24/2018)

• “The company says more than 3,300 Wal-Mart and Sam’s Club associates in Montana are expected to be eligible for the one-time cash bonus, which is estimated to total $1.2 million and more than 1,700 Wal-Mart and Sam’s Club employees are expected to receive a wage increase, which is estimated to total more than $2.5 million.” (“Wal-Mart Announces Wage Hikes, Bonuses For Montana Workers,” Great Falls Tribune, 1/24/2018)

• “Wal-Mart says it is also significantly expanding parental leave and adoption benefits for its workers … The company says salaried associates will receive six weeks of paid parental leave and full-time hourly and salaried associates will receive up to $5,000 per child in financial assistance to support adoptions.” (“Wal-Mart Announces Wage Hikes, Bonuses For Montana Workers,” Great Falls Tribune, 1/24/2018)

• “Wal-Mart’s new average hourly wage for full-time associates in Montana will be $14.15, company officials said. The minimum hourly wage in Montana as of Jan. 1 is $8.15.” (“Wal-Mart Announces Wage Hikes, Bonuses For Montana Workers,” Great Falls Tribune, 1/24/2018)

Montanans Saving On Their Energy Bills: ‘The Tax Cuts And Jobs Act Passed In December Was A Straight Benefit To The Customer’

“The Trump tax cuts are expected to generate $14 million in savings to NorthWestern Energy, which is proposing giving a portion of the money to customers, while spending the rest on tree trimming. Montana’s largest utility filed its plan Friday for dealing with the tax savings…. The tax savings stem from the Republican Tax Cuts and Jobs Act, which Congress passed in December and was signed into law by President Donald Trump.” (“NorthWestern Proposes Trimming Rates And Trees With Federal Tax Break Money,” Billings Gazette, 4/03/2018)

• “NorthWestern has about 345,000 customers in Montana. NorthWestern is proposing that its natural gas customers receive direct refunds for the entire $3.154 million in tax breaks associated with the utility’s natural gas business. The company’s electric customers would receive half of the $10.8 million in tax breaks associated with NorthWestern’s electric business. Half the money would be spent removing hazard trees that pose a fire or outage risk.” (“NorthWestern Proposes Trimming Rates And Trees With Federal Tax Break Money,” Billings Gazette, 4/03/2018)

“Federal tax cuts credited for smaller utility rate increase … The Montana Public Service Commission approved Montana Dakota Utilities’ request to raise its rates for natural gas after the proposed increase was reduced by about 65 percent and officials credit the federal tax cuts passed in December for the decrease. The Bismarck, N.D.-based utility provides retail natural gas and/or electric service to parts of Montana, North Dakota, South Dakota and Wyoming in a service area of more than 168,000 square miles that includes about 410,000 customers in 262 communities.” (“Federal Tax Cuts Credited For Smaller Utility Rate Increase,” Great Falls Tribune, 5/30/2018)

• “Mark Hanson, MDU spokesman, said it was a case in which the Tax Cuts and Jobs Act passed in December was a straight benefit to the customer.  The act cut the 35 percent federal corporate income tax rate the company was paying to 21 percent. He said those savings were passed through to the customer and the utility company was happy with the settlement.” (“Federal Tax Cuts Credited For Smaller Utility Rate Increase,” Great Falls Tribune, 5/30/2018)

Montana Communities Selected For Opportunity Zones To Attract New Development

“Economic development advocates in Butte and Anaconda are hoping a new program that offers tax breaks for those who invest in under-served areas will spur interest in the Smelter and Mining cities. Gov. Steve Bullock in April nominated 25 areas in Montana, including one census tract in Butte and another in Anaconda, to be designated as ‘Opportunity Zones.’ … The Opportunity Zone program came out of the Tax Cuts and Jobs Act of 2017, and since then, state leaders across the country have been seeking to get their disadvantaged areas stamped with the Opportunity Zone designation.” (“Parts Of Butte And Anaconda Nominated For New Investment Incentive Program,” Montana Standard, 5/11/2018)

• “Jim Davison, executive director of the Anaconda Local Development Corporation, said the hope behind the new program is that it will encourage investment in low-income communities that might otherwise be overlooked by investors — places like Butte and Anaconda…. ‘It incentivizes them to actually take that money and do something with it,’ Davison said.” (“Parts Of Butte And Anaconda Nominated For New Investment Incentive Program,” Montana Standard, 5/11/2018)

• “‘From our perspective, any new business that’s coming to town is a huge benefit for our community. We’re increasing the tax base, and we’re finding new job opportunities. And so there’s a lot of local benefit that’s going to go on with these type of programs,’ [Joe] Willauer [executive director of the Butte Local Development Corporation] said.” (“Parts Of Butte And Anaconda Nominated For New Investment Incentive Program,” Montana Standard, 5/11/2018)