reglab/statecodes huggingface dataset:
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.8 - Education Donation Credits › Rule 42.4.802 - QUALIFIED EDUCATION PROVIDER (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH: 15-1-201, 15-30-3114, MCA IMP: Montana Constitution,
					 Art. V, Section 11, Montana Constitution, Art. X, Section 6, 15-30-3101,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.8 - Education Donation Credits › Rule 42.4.803 - SCHOOL DISTRICT AND STUDENT SCHOLARSHIP ORGANIZATION (SSO) REQUIREMENTS AND PREAPPROVAL PROCESS

Current through Register Vol. 13, July 5, 2024
(1) Prior to
				registering a donation with the department, a school district or SSO shall
				submit a complete application to the department. The application is located on
				the department's website at the education donations portal. The application
				must include the following information:
(a)
				the school district or SSO name, address, and federal employer identification
				number; and
(b) the school district
				or SSO donation manager's name, title, phone number, and e-mail
				address.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.8 - Education Donation Credits › Rule 42.4.804 - CREDIT LIMITATIONS AND CLAIMS

Current through Register Vol. 13, July 5, 2024
(1) A
				taxpayer may claim a credit for contributions made in cash to a school district
				provided for in
				20-9-901,
				MCA, and/or a student scholarship organization (SSO), provided for in
				15-30-3110,
				MCA. For the purpose of this rule, cash includes:
(a) U.S. currency;
(b) a personal check;
(c) cashier's check;
(d) money order;
(e) bank draft;
(f) an electronic bank account transfer
				(e.g., wire transfer, ACH draft);
(g) a credit card transaction (less any
				transaction surcharges or fees); or
(h) traveler's check.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.12 - Corporation - General › Rule 42.4.1202 - APPLICATION OF CREDITS AGAINST CORPORATE INCOME TAX LIABILITY

Current through Register Vol. 13, July 5, 2024
(1) Only the corporation that earned the tax
				credit may claim that credit against its own corporate income tax liability. A
				corporation earns a tax credit if it is the entity that made the qualifying
				investment or expenditure to generate the applicable tax credit.
(2) Except as provided for in
				15-32-508,
				MCA, in the case of a merger or consolidation, if a credit is earned by a
				corporation that is no longer in existence the credit may not be claimed
				against the tax liability of the surviving corporation.
(3) Except as provided for in
				15-32-508,
				MCA, in the case of a corporate entity that has converted to a disregarded
				entity, any credit earned by the entity prior to the conversion may not be
				claimed against the tax liability of another entity.
(4) As provided in (1), tax credits are
				applied on a separate entity basis. A tax credit may not be transferred,
				assigned, or otherwise used to reduce the tax liability of any other
				corporation, even if that other corporation is a member of the same unitary
				business group as the corporation that earned the credit.
AUTH:
					 15-31-501,
					 MCA; IMP:
					 15-30-2320,
					 15-30-2326,
					 15-30-2380,
					 15-31-130,
					 15-31-131,
					 15-31-134,
					 15-31-150,
					 15-31-151,
					 15-31-161,
					 15-32-115,
					 15-32-402,
					 15-32-503,
					 15-32-602,
					 15-32-701,
					 15-32-703,
					 15-50-207,
					 17-6-316,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1601 - DEFINITIONS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-8-111,
					 15-31-125,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1602 - CREDIT FOR NEW OR EXPANDING CORPORATIONS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-124,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1603 - PERIOD OF ELIGIBILITY (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-124,
					 15-31-125,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1604 - MANUFACTURING (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-6-225,
					 15-31-124,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1605 - NEW CORPORATION (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-124,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1606 - EXPANDING CORPORATION (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-124,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1607 - COMPLIANCE WITH CERTAIN STATUTES REQUIRED (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-125,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1608 - SUBMISSION OF EMPLOYEE LISTS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-125,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1609 - DETERMINATION OF NEW JOBS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-125,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1610 - DETERMINATION OF WAGES (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-125,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1611 - AVAILABILITY OF TAX CREDIT (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-125,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.16 - Corporation - New and Expanded Industry Credit (Repealed) › Rule 42.4.1612 - WHEN CREDIT MAY BE CLAIMED (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-127,
					 15-31-501,
					 MCA IMP:
					 15-31-125,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.17 - Individual and Corporation - Temporary Emergency Lodging (Repealed) › Rule 42.4.1702 - CREDIT FOR EMERGENCY LODGING (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-1-201,
					 15-30-2620,
					 15-31-501,
					 MCA IMP:
					 15-30-2103,
					 15-30-2381,
					 15-31-101,
					 15-31-102,
					 15-31-171,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.22 - Individual and Corporation - Employer ApprenticeshipTax Credit › Rule 42.4.2202 - EMPLOYER APPRENTICESHIP TAX CREDIT

Current through Register Vol. 13, July 5, 2024
(1)
				Subject to the restriction that apprenticeship tax credits may not exceed the
				taxpayer's total tax liability, the total amount of credit an employer
				participating in a state-registered apprenticeship training program may claim
				is determined by the Montana Department of Labor and Industry (DLI). The
				department can only adjust the total credit allocation among the owners of an S
				corporation, partnership, or limited liability company in order to conform to
				15-30-2357 and 15-31-173, MCA, and
				this rule.
(a) If the employer is an S
				corporation, the shareholders' share of the total credit is based on their pro
				rata share of income or loss.
(b)
				If the employer is a partnership or a limited liability company that is taxed
				like a partnership, the partners' or members' share of the total credit is
				based on the their distributive share of the entity's income or loss reported
				for Montana income tax purposes.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.23 - Claiming the unlocking state lands tax credit › Rule 42.4.2301 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to terms used in this
				  subchapter:
(1) "Agreement" means the
				contract for participation entered into between the Montana Department of Fish,
				Wildlife and Parks (FWP) and the landowner(s) for purposes of guaranteeing
				access to public land under the unlocking public lands program.
(2) "Tax certification number" means the
				number issued by FWP certifying that the landowner is providing qualified
				access to public land under the unlocking public lands program provided for in
				87-1-294, MCA.
AUTH:
					 15-1-201, MCA; IMP:
					 15-30-2380,
					 87-1-294,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.23 - Claiming the unlocking state lands tax credit › Rule 42.4.2302 - CLAIMING THE UNLOCKING PUBLIC LANDS TAX CREDIT

Current through Register Vol. 13, July 5, 2024
(1) To claim the unlocking public lands tax
				credit, a taxpayer shall file a Montana tax return (Form 2 for individuals,
				Form FID-3 for estates and trusts, or Form CIT for C corporations), whether or
				not they are otherwise required to file a tax return for the year the credit is
				being claimed.
(2) A taxpayer who
				files a tax return on a calendar year basis shall claim the credit for the tax
				year in which the agreement applied.
(3) A taxpayer who files a tax return on a
				fiscal year basis shall claim the credit for the tax year in which the
				agreement was certified by the Montana Department of Fish, Wildlife and
				Parks.
(4) The taxpayer shall
				include copies of all tax certification numbers, agreements, and supporting
				documents when filing their return. If the return is filed electronically using
				software that does not support attachments, the taxpayer shall retain the
				information and provide it to the department upon request.
(5) When reviewing a claim for the credit,
				the department may request additional information to determine a taxpayer's
				eligibility for the allocation of the credit being claimed. This information
				may include, but is not limited to:
(a)
				documentation establishing ownership and ownership percentage of the parcel(s);
(b) a Montana Schedule K-1 issued
				by a partnership, S corporation, or fiduciary indicating the partner,
				shareholder, or beneficiary's share of the credit; or
(c) a return filed by a partnership, S
				corporation, or fiduciary including information showing the owners of the
				entity.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.23 - Claiming the unlocking state lands tax credit › Rule 42.4.2303 - ALLOCATION OF CREDIT FOR ACCESS THROUGH LAND WITH MULTIPLE OWNERS AND LAND OWNED BY PASS-THROUGH ENTITIES

Current through Register Vol. 13, July 5, 2024
(1) For
				purposes of calculating the tax credit permitted by the unlocking public lands
				program, parcels held wholly or in part by an entity disregarded for tax
				purposes shall be treated as owned by the entity's owner or owners. For
				example, a parcel held in the name of a single-member limited liability company
				that is disregarded for tax purposes shall be considered as owned by the sole
				member, or sole member and spouse, if applicable.
(2) Unless substantiation of a different
				ownership split is provided by all landowners, the credit for access granted
				through land having multiple owners, such as two individuals or an individual
				and an unrelated corporation, shall be divided equally among the
				landowners.
(3) The credit for
				access through land owned by an S corporation must be allocated to its
				shareholders in the same manner the S corporation uses to allocate its items of
				income or loss to its owners for Montana income tax purposes.
(4) A partnership that is entitled to the
				credit may allocate the total credit in a manner that is mutually agreeable to
				its partners. Evidence of such an allocation may include, but is not limited
				to, Montana Schedules K-1, terms of the partnership agreement that are specific
				to this credit, or a separate agreement between the partners regarding the
				allocation of this credit. If evidence of the allocation is not provided to the
				department upon request, or if the information provided is deficient, the total
				credit must be allocated to the partners in the same manner the partnership
				allocated its income and losses to its owners for Montana income tax
				purposes.
AUTH:
					 15-1-201, MCA; IMP:
					 15-30-2380,
					 87-1-294,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.24 - Individual and Corporation - Health Insurance Credits › Rule 42.4.2402 - INSURE MONTANA REFUNDABLE CREDIT (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-30-2104, MCA IMP:
					 15-30-2368,
					 33-22-2006,
					 33-22-2007,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.24 - Individual and Corporation - Health Insurance Credits › Rule 42.4.2403 - REDUCTION OF DEDUCTIONS ALLOWED FOR INSURANCE CLAIMS (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-30-2104, MCA IMP:
					 15-30-2368,
					 15-31-130,
					 33-22-2006,
					 33-22-2007,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.24 - Individual and Corporation - Health Insurance Credits › Rule 42.4.2404 - COORDINATION WITH OTHER HEALTH INSURANCE CREDITS (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-30-2104, MCA IMP:
					 15-30-2367,
					 15-30-2368,
					 15-31-130,
					 15-31-132,
					 33-22-2006,
					 33-22-2007,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.25 - Individual and Corporation - Biodiesel and Biolubricant Tax Credit › Rule 42.4.2501 - DEFINITIONS (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-30-2620,
					 15-31-501, MCA IMP:
					 15-32-701,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.25 - Individual and Corporation - Biodiesel and Biolubricant Tax Credit › Rule 42.4.2502 - CARRYOVER AND RECAPTURE OF OILSEED CRUSH FACILITY TAX CREDIT (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-30-2620,
					 15-31-501, MCA IMP:
					 15-32-701,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.25 - Individual and Corporation - Biodiesel and Biolubricant Tax Credit › Rule 42.4.2503 - CARRYOVER AND RECAPTURE OF BIODIESEL OR BIOLUBRICANT PRODUCTION FACILITY TAX CREDIT (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-30-2620,
					 15-31-501, MCA IMP:
					 15-32-701,
					 15-32-702,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.25 - Individual and Corporation - Biodiesel and Biolubricant Tax Credit › Rule 42.4.2504 - CARRYOVER AND RECAPTURE OF BIODIESEL BLENDING AND STORAGE TAX CREDIT

Current through Register Vol. 13, July 5, 2024
(1) If any part of the credit earned in
				taxable years beginning after December 31, 2004, is not applied against the tax
				liability for the year earned, the unused portion of the credit can be carried
				forward to offset tax liability in the next seven periods.
(2) The credit may be subject to recapture if
				the facility claiming the credit ceases blending of biodiesel with petroleum
				diesel for sale for a period of 12 consecutive months. At the point the
				facility ceases blending of biodiesel with petroleum diesel, any credit claimed
				in the five years prior to the cease date must be recaptured.
15-30-2620,
					 15-31-501, MCA; IMP,
					 15-32-703,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.26 - Individual and Corporation - Recycle Credit Against Individual and Corporation License Taxes › Rule 42.4.2601 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to this subchapter:
(1) "Finished product" means a marketable
				product that has economic value and is ready to be used by a
				consumer.
(2) "Machinery or
				equipment" is property having a depreciable life of more than one year, whose
				primary purpose is to collect or process reclaimable material or is depreciable
				property used in the manufacturing of a product from reclaimed
				material.
(3) "Primarily" means
				over 50% of time, usage, or other appropriate measure.
(4) "Process or processing" means
				preparation, treatment, including treatment of hazardous waste as defined in
				75-10-403, MCA, or conversion of a
				product or material by an action, change, or function or a series of actions,
				changes, or functions that bring about a desired end result.
(5) "Reclaimed material" is post-consumer
				material that has been collected and used in a process designed to produce
				recycled material.
(6) "Recycled
				material" means a material that can be readily utilized without further
				processing in place of raw or virgin material in manufacturing a product and
				consists of materials derived from post-consumer waste, industrial scrap, and
				material derived from agricultural wastes and other items, all of which can be
				used in the manufacture of new products.
15-30-2620,
					 15-32-611, MCA; IMP,
					 15-32-601,
					 15-32-602,
					 15-32-603,
					 15-32-604,
					 15-32-609,
					 15-32-610,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.26 - Individual and Corporation - Recycle Credit Against Individual and Corporation License Taxes › Rule 42.4.2602 - ADDITIONAL DEDUCTION FOR PURCHASE OF RECYCLED MATERIAL

Current through Register Vol. 13, July 5, 2024
(1) Businesses, including corporations,
				individuals, and partnerships, may take an additional 10 percent deduction of
				the expenses related to the purchase of recycled products used within Montana
				in their business if the recycled products purchased contain recycled material
				at a level consistent with industry standards and/or standards established by
				the Federal Environmental Protection Agency when such standards exist. The
				department may request the assistance of the Montana Department of
				Environmental Quality to determine if the product qualifies as a recycled
				product. Due to continuing technological advances in the recycling industry,
				the standards will be subject to constant change. The industry standards to be
				used will be those in effect at the time the product was purchased.
(2) For a taxpayer paying individual income
				tax, the deduction is an adjustment to federal adjusted gross income for
				individual income tax.
(3) For a
				corporation paying the corporate income tax/alternative corporate income tax,
				the deduction is an adjustment to federal taxable income for the corporate
				income tax/alternative corporate income tax.
(4) A shareholder of an S corporation may
				claim a share of the allowable deduction for expenditures that the S
				corporation incurred for purchase of qualified recycled material based on the
				shareholder's pro rata share of their ownership in the S corporation. A partner
				of a partnership may claim a share of the allowable deduction for expenditures
				the partnership incurred for the purchase of qualified recycled material in the
				same proportion used to report the partnership's income or loss for Montana
				income tax purposes.
(5) Any
				deductions claimed are subject to review by the department. The responsibility
				to maintain accurate records to substantiate deductions remains with the
				taxpayer.
15-32-609,
					 15-32-611, MCA; IMP,
					 15-32-603,
					 15-32-609,
					 15-32-610,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.26 - Individual and Corporation - Recycle Credit Against Individual and Corporation License Taxes › Rule 42.4.2604 - CREDIT FOR INVESTMENTS IN DEPRECIABLE EQUIPMENT OR MACHINERY TO COLLECT, PROCESS, OR MANUFACTURE A PRODUCT FROM RECLAIMED MATERIAL, OR PROCESS SOILS CONTAMINATED BY HAZARDOUS WASTES

Current through Register Vol. 13, July 5, 2024
(1) The credit
				is subject to the limitations outlined in
				15-32-602, MCA, and is available
				only for the acquisition of machinery and/or equipment that is depreciable, as
				defined in Section 167 of the IRC. The machinery and/or equipment must be used
				in Montana primarily for the collection or processing of reclaimable material,
				or in the manufacture of finished products from reclaimed material.
(2) The basis for the credit is generally the
				cost of the property before consideration of trade-in equipment. An exception
				to this is that the basis shall be reduced by any trade-in which has had this
				credit previously taken on it. This includes the purchase price, transportation
				cost (if paid by the purchaser), and the installation cost before depreciation
				or other reductions. This credit does not increase or decrease the basis for
				tax purposes. Leased equipment is restricted to capital leases, and the credit
				is calculated on the amount capitalized for balance sheet purposes under
				generally accepted accounting principles.
(3) Recycling machinery and/or equipment must
				be located and operating in Montana on the last day of the taxable year for
				which the credit is claimed. The machinery or equipment must be used to:
(a) collect;
(b) process;
(c) separate;
(d) modify;
(e) convert; or
(f) treat solid waste into a product that can
				be used in place of a raw material for productive use or treat soil that has
				been contaminated by hazardous wastes.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.26 - Individual and Corporation - Recycle Credit Against Individual and Corporation License Taxes › Rule 42.4.2605 - PERIOD COVERED FOR THE RECLAMATION AND RECYCLING CREDIT

Current through Register Vol. 13, July 5, 2024
(1) The credit must be taken in the tax year
				in which the machinery/equipment was acquired and placed into
				service.
(2) Any credit claimed is
				subject to review by the department. The department may request the assistance
				of the Montana Department of Environmental Quality when making its
				determinations. The responsibility to maintain accurate records to substantiate
				the credit remains with the taxpayer.
15-32-611, MCA; IMP,
					 15-32-601,
					 15-32-602,
					 15-32-603,
					 15-32-604,
					 15-32-609,
					 15-32-610,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.27 - Individual and Corporation - Qualified Endowment › Rule 42.4.2701 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to this subchapter:
(1) "Allowable contribution" for the purposes
				of the qualified endowment credit is a charitable gift made to a qualified
				endowment. The contribution from an individual to a qualified endowment must be
				by means of a planned gift as defined in
				15-30-2327, MCA. A contribution
				from a corporation, small business corporation, estate, trust, partnership, or
				limited liability company may be made by means of a planned gift or may be made
				directly to a qualified endowment.
(2) "Donor" means an individual, corporation,
				estate, or trust that contributes to a qualified charitable endowment as
				required by
				15-30-2327,
				15-30-2328,
				15-30-2329,
				15-31-161, and
				15-31-162, MCA.
(3) "Paid-up life insurance policies" are
				life insurance policies in which all the premiums have been paid prior to the
				policies being contributed to a qualified endowment. The donor must make the
				tax-exempt organization the owner and beneficiary of the policy. The paid-up
				life insurance policy does not have to be on the life of the donor.
(4) "Permanent irrevocable fund" means a fund
				comprised of one or more assets that are invested and appropriated pursuant to
				the Uniform Prudent Management of Institutional Funds Act provided for in Title
				72, chapter 30, MCA. Investment assets may include cash, securities, mutual
				funds, or other investment assets. A "building fund" or other fund that is used
				to accumulate contributions that will be expended is not a permanent
				irrevocable fund. A fund from which contributions are expended directly for
				constructing, renovating, or purchasing operational assets, such as buildings
				or equipment, is not a permanent irrevocable fund.
(5) "Present value of the charitable gift
				portion of a planned gift" is the allowable amount of the charitable
				contribution as defined in
				15-30-2131, and
				15-30-2152, MCA, or for
				corporations as defined in
				15-31-114, MCA, prior to any
				percentage limitations.
(6)
				"Qualified endowment" means a permanent irrevocable fund established for a
				specific charitable, religious, educational, or eleemosynary purpose by an
				organization qualified to hold it as provided in ARM
				42.4.2703.
15-30-2620,
					 15-31-501, MCA; IMP,
					 15-30-2131,
					 15-30-2152,
					 15-30-2327,
					 15-30-2328,
					 15-30-2329,
					 15-31-114,
					 15-31-161,
					 15-31-162,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.27 - Individual and Corporation - Qualified Endowment › Rule 42.4.2703 - ELIGIBILITY REQUIREMENTS TO HOLD A QUALIFIED ENDOWMENT

Current through Register Vol. 13, July 5, 2024
(1) To hold a qualified endowment an
				organization must be:
(a) incorporated or
				otherwise formed under the laws of Montana and exempt from federal income tax
				under 26 USC
				501 (c)(3); or
(b) a Montana chartered bank or trust
				company, as defined in
				15-30-2327, MCA, holding an
				endowment fund on behalf of a Montana or foreign 501(c)(3)
				organization.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.27 - Individual and Corporation - Qualified Endowment › Rule 42.4.2704 - TAX CREDIT AND DEDUCTION LIMITATIONS

Current through Register Vol. 13, July 5, 2024
(1) The
				credit allowed the corporation, estate, trust, or individual against its tax
				liability for a contribution of a planned gift is the percentage, as shown in
				the following table, of the present value of the allowable contribution as
				defined in ARM
				42.4.2701. The credit allowed
				against the tax liability of the corporation, estate, or trust for a direct
				contribution is equal to 20 percent of the charitable contribution. The maximum
				credit that may be claimed in one year is $10,000 per donor. A contribution
				made in a previous tax year cannot be used for a credit in any subsequent tax
				year.
Planned Gifts by Individuals or
				  Entities
Planned Gift Date
Percent of Present Value
Used to Calculate Maximum
							 Credit
Maximum Credit Per
								Year
7/1/03 - 12/31/19
40%
$25,000
$10,000
(2)
				The credit allowed against the corporate, estate, trust, or individual tax
				liability for a charitable gift made by a corporation, small business
				corporation, estate, trust, partnership, or limited liability company directly
				to a qualified endowment is the percentage, as shown in the following table, of
				the allowable contribution as defined in ARM 42.4.2701.
Unplanned Gifts by Eligible
				  Entities
Qualified Charitable Gift
							 Date
Percent of Allowable
							 Contribution
Allowable
Contribution Used to Calculate Maximum
								Credit
Maximum
Credit
Per Year
7/1/03 - 12/31/19
20%
$50,000
$10,000
(3)
				The balance of the allowable contributions not used in the credit calculation
				may be used as a deduction subject to the limitations and carryover provisions
				found in 15-30-2131, MCA, or for
				corporations, the limitations and carryover provisions found in
				15-31-114, MCA.
(a) Example of an allowable deduction when a
				planned gift is used for the Qualified Endowment Credit:
Time Period
Present Value
Maximum Credit
Credit Percentage
Allowable Deduction
7/1/03 - 12/31/19
$50,000 -
($10,000 /
.40) =
$25,000
(b)
				Example of an allowable deduction when an outright gift is used for the
				Qualified Endowment Credit:
Time Period
Market Value
Maximum Credit
Credit Percentage
Allowable Deduction
7/1/03 - 12/31/19
$55,000 -
($10,000 / .20)
=
$5,000
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.27 - Individual and Corporation - Qualified Endowment › Rule 42.4.2705 - CREATING A PERMANENT IRREVOCABLE FUND

Current through Register Vol. 13, July 5, 2024
(1)
				A permanent, irrevocable fund can be created by a restriction in the applicable
				planned gift document indicating the donor's intention that the contribution
				shall be held in a permanent, irrevocable fund. For planned gifts other than
				paid-up life insurance policies, the applicable planned gift document is the
				trust document, gift annuity contract, life estate agreement or pooled income
				fund agreement.
(2) A permanent
				irrevocable fund can be created in a separate gift document accompanying an
				outright contribution.
(3) A
				permanent irrevocable fund may be created by either a qualified organization
				referenced in ARM
				42.4.2703 under a separate
				governing document or when a donor creates an endowment through a gift
				document.
(4) By creating a
				permanent, irrevocable fund and receiving the credit, the donor waives the
				right under
				72-30-207, MCA, to release the
				restriction in the gift document.
(5) All funds created by donors or qualified
				organizations must meet the requirements of a permanent irrevocable fund
				provided in these rules.
15-30-2620,
					 15-31-501, MCA; IMP,
					 15-30-2327,
					 15-30-2328,
					 15-30-2329,
					 15-31-161,
					 15-31-162,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.27 - Individual and Corporation - Qualified Endowment › Rule 42.4.2706 - REPORTING REQUIREMENTS

Current through Register Vol. 13, July 5, 2024
(1) The donor must
				attach a copy of the following information to the tax return reporting the
				credit:
(a) a receipt acknowledging the
				amount of the allowable contribution from the:
(i) tax-exempt organization under
				26 USC
				501 (c)(3) holding the qualified endowment
				receiving the contribution;
(ii)
				trustee of the trust administering the planned gift; or
(iii) bank or trust company holding a
				qualified endowment on behalf of a tax exempt organization.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.27 - Individual and Corporation - Qualified Endowment › Rule 42.4.2707 - QUALIFIED ENDOWMENT CREDIT FOR CORPORATIONS (REPEALED)

Current through Register Vol. 13, July 5, 2024
15-30-2620,
					 15-31-501, MCA; IMP,
					 15-30-2327,
					 15-30-2328,
					 15-30-2329,
					 15-31-161,
					 15-31-162,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.27 - Individual and Corporation - Qualified Endowment › Rule 42.4.2708 - DETERMINING PRESENT VALUE FOR THE ENDOWMENT CREDIT

Current through Register Vol. 13, July 5, 2024
(1) For purposes of determining the endowment
				credit, the present value of a contribution is the amount reported to the
				Internal Revenue Service for that contribution. The present value of a gift
				contributed to a qualified endowment is based on its fair market value on the
				date of the gift.
(2) As derived
				from the May 2009 IRS Publication 1457 titled "Actuarial Valuations," the life
				expectancy tables that shall be used when determining the life expectancy of
				the annuitant or joint life expectancy of the annuitants, within which the
				first partial or full-year payment of a deferred charitable gift annuity is
				required to begin in order for it to be deemed a planned gift for the purposes
				of 15-30-2327, MCA, are set forth in Tables 1 and 2.
(a) Example. The table indicates a
				98-year-old annuitant has a life expectancy of 2.5 years. So the first partial
				year (such as a monthly, quarterly, or semi-annual payment), or full year
				payment mandated by the annuity contract, must be required to be paid no later
				than two and one-half years from the date the deferred annuity contract is
				created.
Table 1: Single Life Expectancies Based on 2000 CM
				  Mortality
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				  to view Image.
Table 2: Two Life Expectancies Based on 2000 CM
				  Mortality
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				  to view Image.
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				  to view Image.
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Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.28 - Individual and Corporation - Employee Disability Health Insurance (Repealed) › Rule 42.4.2801 - DEFINITIONS (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-1-201,
					 15-31-501,
					 MCA IMP:
					 15-31-132,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.28 - Individual and Corporation - Employee Disability Health Insurance (Repealed) › Rule 42.4.2802 - HEALTH INSURANCE FOR UNINSURED MONTANANS CREDIT (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-501,
					 MCA IMP:
					 15-30-2367,
					 15-31-132,
					 33-1-207,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.28 - Individual and Corporation - Employee Disability Health Insurance (Repealed) › Rule 42.4.2803 - DETERMINING NUMBER OF EMPLOYEES (REPEALED)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-1-201,
					 15-31-501,
					 MCA IMP:
					 15-30-2367,
					 15-31-132,
					 33-1-207,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.29 - Individual and Corporation - Historic Property Preservation › Rule 42.4.2902 - COMPUTATION OF THE TAX CREDIT FOR THE PRESERVATION OF HISTORIC PROPERTIES

Current through Register Vol. 13, July 5, 2024
(1) Montana's tax
				credit for the preservation of historic buildings is to be computed using the
				federal credit allowed by 26
				USC 47, which is a component of the federal
				general business credit. No other component of the federal general business
				credit may be used to compute Montana's credit for the preservation of historic
				buildings.
(2) Qualifying
				expenditures used to calculate the credit for the preservation of historic
				buildings must be reduced by amounts used in calculating other Montana tax
				credits or tax incentives.
AUTH:
					 15-30-2620,
					 15-31-501, MCA; IMP:
					 15-30-2342,
					 15-31-151,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.29 - Individual and Corporation - Historic Property Preservation › Rule 42.4.2903 - COMPUTATION OF TAX CREDIT FOR PRESERVATION OF HISTORIC PROPERTY FOR MARRIED TAXPAYERS

Current through Register Vol. 13, July 5, 2024
(1) If property
				qualifying for the credit is owned by a husband and wife, the credit may be
				applied to their joint tax liability if filing a joint tax return.
(2) If husband and wife file separately, and
				the property is jointly held, the credit must be computed individually by each
				spouse and applied to the corresponding tax liabilities.
(3) When filing separately, one spouse's
				credit cannot be applied to the other spouse's tax liability.
(4) Carryovers of unused preservation credit
				may only be applied to the tax liability of the spouse who is entitled to claim
				the credit. If in a carryover year husband and wife who previously filed
				separately, now file a joint return, carryover credits must be applied
				separately to each spouse's share of the joint tax liability.
15-30-2620, MCA; IMP,
					 15-30-2342,
					 15-31-151,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.29 - Individual and Corporation - Historic Property Preservation › Rule 42.4.2904 - OWNERSHIP OF HISTORIC PROPERTY

Current through Register Vol. 13, July 5, 2024
(1) The credit is
				allowed to owners of the property who make qualified rehabilitation
				expenditures.
(2) A lessee that
				makes its own qualified rehabilitation expenditures to a certified historical
				building for which it is allowed a federal rehabilitation credit in its own
				right under IRC 47(c)(2)(B)(vi) when the initial lease term is longer than the
				building's IRC 168(c) recovery period is allowed to claim the Montana
				rehabilitation credits based on its own investment.
(3) A lessor who elects under U.S. Treasury
				regulation 26 C.F.R.
				1.48-4(f) and (g) to pass
				the federal rehabilitation credit to a lessee may not claim the Montana credit
				and, correspondingly, a lessee to whom the federal rehabilitation credit is
				transferred is entitled to claim the Montana credit.
(4) A credit for the preservation of historic
				property jointly owned by more than one individual must be allocated between
				owners based on each owner's share of ownership in the property. Unless
				specified otherwise when the property is purchased, percentage of ownership
				will be considered equal to 100 percent divided by the number of
				owners.
(5) A credit for the
				preservation of historic property owned by an S corporation must be allocated
				to its shareholders based on their pro rata share of ownership in the
				corporation.
(6) A credit for the
				preservation of historic property owned by a partnership must be attributed to
				the partners in the same proportion used to report the partnership's income or
				loss for Montana income tax purposes.
15-30-2620, MCA; IMP,
					 15-30-2342,
					 15-31-151,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.29 - Individual and Corporation - Historic Property Preservation › Rule 42.4.2905 - CLAIMING THE HISTORIC PRESERVATION CREDIT

Current through Register Vol. 13, July 5, 2024
(1) Except as
				provided in (2) , federal Form 3468, the form used in claiming the federal
				rehabilitation credit, must be attached to the applicable Montana tax returns.
				S corporations and entities taxable as partnerships must attach the form to
				their information returns and the owners of the pass-through entities must also
				attach a copy to their individual income or corporate income tax
				returns.
(2) A taxpayer who made a
				valid election to transfer the federal rehabilitation credit to a lessee must
				attach a copy of the election statement required by U.S. Treasury regulation
				26 C.F.R.
				1.48-4(f) and (g) , and the
				lessee's Form 3468 that identifies the taxpayer as the transferor. If the
				credit calculation for certified historic structures on the lessee's Form 3468
				contains qualified rehabilitation expenditures other than those incurred by the
				taxpayer, the taxpayer must provide a schedule breaking out the taxpayer's own
				expenditures and a pro forma federal credit calculation.
AUTH:
					 15-30-2620, MCA; IMP:
					 15-30-2342,
					 15-31-151,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.30 - Individual and Corporation - Infrastructure Users Fee › Rule 42.4.3002 - WHO MAY CLAIM THE INFRASTRUCTURE USER FEE CREDIT

Current through Register Vol. 13, July 5, 2024
(1) A taxpayer may claim a credit for the
				infrastructure user fee paid to a local government for an "infrastructure
				loan." The "infrastructure loan," as defined under ARM
				8.97.1301, is a loan to the local
				government from the Montana department of commerce. The Montana department of
				commerce will determine if such loan qualifies for this credit.
(2) A taxpayer claiming the credit must
				follow both of the following criteria:
(a)
				the taxpayer must meet the provisions set forth in
				17-6-309, MCA; and
(b) the taxpayer must pay the infrastructure
				user fee.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.30 - Individual and Corporation - Infrastructure Users Fee › Rule 42.4.3003 - CLAIMING THE INFRASTRUCTURE USER FEE CREDIT

Current through Register Vol. 13, July 5, 2024
(1) A taxpayer who qualifies for the
				infrastructure user fee credit may take the full credit for the fees paid. The
				credit is not to exceed the loan principal paid plus interest.
(2) When claiming the credit, the taxpayer
				must attach to their tax return a completed copy of Form IUFC, Infrastructure
				User Fee Credit.
(3) A credit will
				not be allowed for any infrastructure user fee that was not timely
				paid.
(4) The credit is
				nonrefundable. Any excess credit must first be carried back to each of the
				three preceding taxable periods, reducing the tax liability to zero, and then
				carried forward to each of the seven taxable periods following the taxable
				period of the credit. The current year credit must be applied first before any
				carry back or carry forward will be allowed.
15-1-201, MCA; IMP,
					 17-6-309,
					 17-6-316,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.30 - Individual and Corporation - Infrastructure Users Fee › Rule 42.4.3004 - RECAPTURE OF THE INFRASTRUCTURE USER FEE CREDIT

Current through Register Vol. 13, July 5, 2024
(1) If the board of investments determines
				that the loan to the local government has not met the conditions set forth in
				17-6-309, MCA, the credit for the
				infrastructure user fee shall be subject to recapture.
(2) The credit recaptured will be the credit
				claimed to date to offset the taxpayer's tax liability plus any applicable
				interest, pursuant to Title 15, chapters 30 and 31, MCA.
(3) Any credit previously eligible for the
				carry forward on a loan that the board of investments determines does not
				qualify will not be available for carry forward.
Sec.
					 15-1-201, MCA; IMP, Sec.
					 17-6-309 and
					 17-6-316,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.31 - Individual and Corporation - Contractor Gross Receipt › Rule 42.4.3102 - CREDIT FOR CONTRACTOR'S GROSS RECEIPTS TAX - INDIVIDUAL INCOME TAX

Current through Register Vol. 13, July 5, 2024
(1) A resident or a nonresident taxpayer is
				allowed a credit against the taxpayer's Montana income tax liability for public
				contractor's gross receipts tax paid pursuant to the provisions of
				15-50-205 and
				15-50-206, MCA. The credit is
				allowed with respect to the taxpayer's Montana income tax liability determined
				for the taxable year in which the net income from contracts subject to the
				gross receipts tax is reported. If the taxpayer reports income from contracts
				on a percentage of completion basis, the credit must be allocated accordingly.
				The amount of credit allowable is the net public contractor's gross receipts
				tax (after personal property tax credit) actually imposed and paid by the
				taxpayer but not in excess of the taxpayer's Montana income tax liability. Any
				excess credit may be carried forward for up to five taxable periods.
(2) In the event the public contractor's
				gross receipts tax is paid by a partnership, S corporation, limited liability
				company, or limited liability partnership, the members, partners, or
				shareholders are entitled to the credit for the tax as the respective interests
				appears.
15-1-201, MCA; IMP,
					 15-50-205,
					 15-50-206,
					 15-50-207,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.31 - Individual and Corporation - Contractor Gross Receipt › Rule 42.4.3103 - CREDIT FOR CONTRACTOR'S GROSS RECEIPTS TAX - CORPORATION INCOME TAX

Current through Register Vol. 13, July 5, 2024
(1) A direct credit against the tax is
				allowed for "public contractor's gross receipts tax" paid pursuant to the
				provisions of
				15-50-205 and
				15-50-206, MCA. The credit is
				allowed with respect to the corporation's Montana corporate income tax
				liability determined for the taxable period within which the net income from
				contracts subject to the gross receipts tax is reported. If the corporation
				reports its income from contracts on a percentage of completion basis, the
				credit must be allocated accordingly.
(2) The amount of credit allowable is the net
				public contractor's gross receipts tax (after personal property tax credit)
				actually imposed against and paid by the corporation but not in excess of its
				Montana corporate income tax liability. The credit is allowed without regard to
				the fact that the public contractor's gross receipts tax is an allowable
				deduction in determining net income subject to the Montana corporate income
				tax.
(3) In the event the public
				contractor's gross receipts tax is paid by a joint venture or a partnership,
				the members thereof shall be entitled to the credit for the tax as their
				respective interests appear.
(4) If
				the public contractor's gross receipts tax is paid by an S corporation, the
				credit must be attributed to shareholders using the same proportion used to
				report the corporation's income or loss for Montana income tax
				purposes.
15-31-501, MCA; IMP,
					 15-50-207,
					 MCA;