HELENA — Gov. Greg Gianforte has signed a bill into law that he says will give an important tax break to Montana businesses.

On Thursday, Gianforte and other state leaders visited the site of the future Confluence Apartments, currently under construction in the Mountain View Meadows subdivision on Helena’s east side. There, Gianforte signed House Bill 210, sponsored by House Majority Leader Rep. Steve Fitzpatrick, R-Great Falls.

(Watch the video to see more about the impact of HB 210.)

Every year, businesses pay a tax that funds unemployment insurance – short-term benefits for people who’ve lost their jobs. HB 210 reduces how much businesses have to pay into the unemployment relief fund when it’s full.

“Savings in the construction industry are nearly $2 million this year alone, and then nearly $4 million next year, just because of this single change,” said Gianforte. “Reducing costs for construction will help all of these firms have more money to invest in their businesses and speed up the construction of housing.”

Leaders said Montana’s unemployment insurance fund currently has a balance of more than $643 million – in part because statewide unemployment rates have been low for several years.

“Because our unemployment trust fund is at a record high, we can responsibly lower tax rates on employers,” said Sarah Swanson, Montana’s commissioner of labor and industry.

Swanson said HB 210 also strengthened the state’s ability to detect fraudulent applications for unemployment benefits. It gives the Montana Department of Labor and Industry the authority to check claimants’ information against Motor Vehicle Division records.

“At one point last year, over 80% of all new unemployment claims coming into our system were flagged as fraudulent with real-time ID verification through our friends at the Department of Justice,” she said. “We can stop fraud earlier by ensuring that applicants are who they say they are, saving our employers time and money.”

Bob Heberly is a vice president with Dick Anderson Construction, the company building the Confluence Apartments. He said the changes in HB 210 could save the company $38,000 a year.

The Confluence Apartments will include 108 housing units in three buildings. Construction began last year and is scheduled to be completed this fall.