But the partisan plans also have a potentially big sticking point.
Both measures would increase the tax-free exemption for business equipment: to $100,000 for the GOP plan and to $150,000 for the Democrats' plan, which was initiated by Gov. Brian Schweitzer's agenda.
Democrats said cutting the tax rate for bigger businesses would be too costly, and wouldn't do anything for the small businesses that really need the help. They argued the money would simply be used to pad corporate profits.
Republicans who control the House argued that cutting the tax rate above the threshold, from 3 percent to 2 percent, would put more money into the economy.
''Every time we have reduced this tax to our business people, we have seen a nice spurt in revenue coming into the state of Montana,'' said Rep. Bob Lake, R-Hamilton. ''If you leave more money in the pockets of businesses, you will see more money in the pockets of our workers.''
The version of the tax break percolating in the Democrat-controlled Senate also includes many of Schweitzer's plans for out-of-state tax cheats.
Democrats argue the revenue gained by forcing nonresidents and distant corporations to pay the taxes they owe could be used to give the tax break to small Montana businesses with less then $150,000 in equipment.
The GOP plan would reduce tax collections by nearly $39 million, and was endorsed in the House on a 69-31 vote.
The Democrat plan, carried by Sen. Jim Elliott, D-Trout Creek, would cut taxes by $12 million a year. A vote on that measure was postponed Thursday.
''When we are trying to give tax relief this session we want to make sure it's sustainable, and we want to make sure it's for small business,'' said Rep. Jill Cohenour, D-East Helena.
The Republican bill is House Bill 529. The Democratic bill is Senate Bill 220.
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