TETC: Trades Education and Training Credit (2025)
Montana · Montana DOR · Used for tax years 2025
Montana Form TETC is used to calculate and claim the 2025 Trades Education and Training Credit. It reports eligible employees, their trade professions, education and training expenses, and the resulting credit. The nonrefundable credit equals 50% of qualified expenses, up to $2,0
Who files this form
Employers claiming the 2025 Montana Trades Education and Training Credit must include Form TETC with their tax return.
The credit is for employers that incur expenses providing eligible employees with education or training for a trade profession. An eligible employee must work, or be expected to work, in a trade profession in Montana for at least 6 months of the year in which the education or training occurs. Use the trade profession list in the form’s instructions.
What you'll need
To complete Form TETC, you need:
- Your name as it appears on your Montana tax return and your FEIN or SSN.
- Each eligible employee’s name, Social Security number, and trade profession.
- The education or training expenses incurred for each employee.
- The amounts deducted elsewhere or paid through a grant or similar program.
If you claim the credit for more than 15 employees, attach a statement with the same information requested in the table.
Online education must provide suitable proof of completion.
How to file
Include completed Form TETC with your Montana tax return when claiming the credit.
- Enter your name and FEIN or SSN.
- In Columns A through C, enter each eligible employee’s name, SSN, and trade profession from the instructions’ list.
- In Column D, enter the education or training expense incurred for each employee.
- In Column E, enter expenses taken as a deduction or paid through a grant or similar program.
- Subtract Column E from Column D and enter the result in Column F.
- Multiply Column F by 50% and enter the result in Column G.
- In Column H, enter the smaller of Column G or $2,000.
- Add the amounts in Column H. Enter the smaller of that total or $25,000 as your credit.
The provided text does not specify a mailing address or e-filing procedure.
Common mistakes
- Claiming both a deduction and a credit for the same expense. You cannot do both. The instructions say that if you deducted training and education expenses from taxable income, report them as an addition to income on your Montana income tax return.
- Counting grant-funded expenses toward the credit. Expenses paid through a grant or similar program cannot be used to figure the credit.
- Exceeding the limits. The credit cannot exceed $2,000 per eligible employee or $25,000 total.
- Carrying unused credit to another year. The credit is nonrefundable, and excess credit cannot be carried to another tax year.
- Leaving out required attachments. Include Form TETC with your return. If claiming for more than 15 employees, attach a statement with the same employee information.
Questions people ask
How much is the 2025 credit?
The credit is 50% of qualified trades education and training expenses incurred during the year, limited to $2,000 per eligible employee and $25,000 total. It is nonrefundable, and excess credit cannot be carried to another tax year.
What expenses qualify?
Qualified expenses are paid to a third party to help an employee develop additional techniques and skills in a trade profession. They include tuition, fees, books, supplies, and equipment required as part of a qualified training method.
What types of training qualify?
Qualifying methods include classroom training where the employee travels to the educator, on-site training customized to the employer’s needs, and interactive online training. For online training, the employee must have access to the educator or trainer and demonstrate or practice the subject matter. Online education must provide suitable proof of completion.
Where can I ask questions?
Call (406) 444-6900 or Montana Relay at 711 for the hearing impaired.