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May 23, 2023

Montana repeals tax haven provisions

On May 22, 2023, Montana Governor Greg Gianforte signed into law Senate Bill 246 (SB 246), which repeals Montana's provisions that required affiliates incorporated in so-called tax havens to be included in the water's-edge group for corporate income tax purposes. This change took immediate effect, and it applies retroactively to tax years beginning after December 31, 2022.


Montana had been an outlier in listing specific countries as tax havens. With this repeal, Colorado is the only state that lists tax havens, after enacting its own provisions in 2021 (see Tax Alert 2021-1198).


Contact Information
For additional information concerning this Alert, please contact:
State and Local Taxation Group
   • Bill Nolan (

Published by NTD’s Tax Technical Knowledge Services group; Jennifer A Brittenham, legal editor