Rural Tourism Asset Grant Program

The Rural Tourism Asset Grant Program (TAG) is administered by the Montana Department of Commerce through its Destination MT Division. Funded by the state’s 4% Lodging Facility Use Tax—commonly referred to as the bed tax—the TAG initiative supports infrastructure and asset development that bolsters rural tourism. This tax, collected from establishments such as hotels, guest ranches, vacation rentals, and campgrounds, aims to generate revenue for tourism enhancement efforts throughout Montana’s less urbanized regions. The TAG program is structured to provide one-time, reimbursement-based grants of up to $75,000 for projects that enhance the visitor experience, preserve cultural and historic tourism sites, and promote sustainable economic growth in rural communities. To qualify, projects must be located in designated rural or under-visited areas within Montana, must demonstrate public support and alignment with tourism goals, and be shovel-ready with anticipated completion within two years. Examples of eligible projects include interpretive infrastructure, signage, downtown development, and restoration of tourism-relevant assets such as visitor centers or outdoor recreation amenities. The emphasis is placed on capital improvements that provide long-term benefits rather than temporary programming or operational support. Applicants must represent qualified entities such as local or tribal governments, economic development organizations, or nonprofit organizations in good standing with the Montana Secretary of State. They must demonstrate a 10% match of committed or actual funds, of which no more than 5% may be used for administrative costs. Ineligible uses include marketing, event planning, real estate acquisition, ongoing maintenance, and any costs incurred prior to the award date. Projects must be located outside of urban or over-visited areas as designated in the program’s Urban and Overvisited Designations map. The application process requires completion and submission through the Montana Grants and Loans Portal. To assist applicants, the Office of Tourism offers pre-deadline webinars covering key elements such as program goals, eligibility, matching requirements, and the review process. Required components for a complete application include a project budget and narrative, implementation schedule, and documentation of matching funds. Evaluation criteria focus on project readiness, sustainability, visible impact, and deliverables. All reimbursements are processed post-contract execution and on a quarterly basis. Final disbursement is contingent upon completion of all required documentation, including a final report and closeout documents. The Department of Commerce assigns a program liaison to assist successful applicants with compliance, reimbursement requests, and reporting. The 2026 application cycle is open from March 2 through March 26, 2026. This is a recurring grant program, with the next anticipated cycle expected in Spring 2027. Interested applicants should reference the official program guidelines for comprehensive instructions and submit their applications via the designated online portal.

Applicants should clearly demonstrate project readiness, long-term impact, and strong community support.