reglab/statecodes huggingface dataset:
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.32 - Individual and Corporation - Qualified Research Credit › Rule 42.4.3202 - CREDIT FOR INCREASING RESEARCH ACTIVITIES

Current through Register Vol. 13, July 5, 2024
(1) A credit for increases in qualified
				research expenses and basic research payments that occurred prior to January 1,
				2011, is allowed to a qualified corporation, an individual, a small business
				corporation, a partnership, a limited liability partnership, or a limited
				liability company. Except as specifically limited by Montana law,
				15-31-150, MCA, this credit is
				determined in accordance with
				26 USC
				41 as that section read on July 1,
				1996.
(2) For tax years beginning
				after December 31, 2010, no current year credit may be claimed. Only unused
				amounts available as a carry forward under
				15-31-150, MCA, may be claimed for
				the 15 succeeding tax years.
(3) A
				taxpayer must file Form RSCH providing information as prescribed on the form,
				which includes a copy of the form filed with the IRS to claim the federal
				credit for increasing research activities. If amounts paid or incurred do not
				apply to the federal credit after a termination date provided in
				26 USC
				41, a taxpayer whose expenses qualify for the
				Montana credit after the termination date must submit with Form RSCH the
				information required on the federal form for the tax year immediately preceding
				the tax year in which the termination occurred.
(4) Form RSCH may be obtained from the
				department upon request or is available on the department's web site under the
				downloadable forms at revenue.mt.gov.
(5) Form RSCH must be filed with the tax
				return.
(a) For individual taxpayers,
				including single member limited liability companies that are owned by an
				individual and are disregarded for income tax purposes, if the tax return is
				filed by paper, the return and Form RSCH must be mailed to:
Department of Revenue
P.O. Box 5805
Helena, Montana 59604-5805
(b) For corporations, partnerships, and
				entities taxed as corporations or partnerships, if the tax return is filed by
				paper, the return and Form RSCH must be mailed to:
Department of Revenue
P.O. Box 8021
Helena, Montana 59604-8021
(c) If the tax return is filed
				electronically, Form RSCH must be kept in the taxpayer's records and a copy
				provided to the department upon request.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.32 - Individual and Corporation - Qualified Research Credit › Rule 42.4.3203 - INFORMATION REQUIRED OF A MULTISTATE BUSINESS CLAIMING A CREDIT FOR INCREASING RESEARCH ACTIVITIES

Current through Register Vol. 13, July 5, 2024
(1) A taxpayer
				claiming a credit for increasing research activities who has income from
				business activity that is taxable both within and outside of this state shall
				submit a by-state breakdown of:
(a) gross
				sales less returns and allowances that conform to the requirements of
				15-31-311, MCA;
(b) qualified research expenses as defined in
				15-31-150, MCA;
(c) supplies as defined in
				15-31-150, MCA; and
(d) wages as defined in
				15-31-150, MCA.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.33 - Individual and Corporation - Movie and Television Industry and Related Media - Tax Credit › Rule 42.4.3301 - DEFINITIONS (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-911, MCA IMP:
					 15-31-906,
					 15-31-907,
					 15-31-908,
					 15-31-911,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.33 - Individual and Corporation - Movie and Television Industry and Related Media - Tax Credit › Rule 42.4.3302 - STATE CERTIFICATION (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-911, MCA IMP:
					 15-31-906,
					 15-31-907,
					 15-31-908,
					 15-31-911,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.33 - Individual and Corporation - Movie and Television Industry and Related Media - Tax Credit › Rule 42.4.3303 - SUBMISSION OF COSTS AND APPLICATION FOR TAX CREDIT (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-30-2620,
					 15-31-911, MCA IMP:
					 15-30-2103,
					 15-31-906,
					 15-31-907,
					 15-31-908,
					 15-31-911,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.33 - Individual and Corporation - Movie and Television Industry and Related Media - Tax Credit › Rule 42.4.3304 - CERTIFICATION FOR EMPLOYMENT PRODUCTION TAX CREDIT (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-911, MCA IMP:
					 15-30-2101,
					 15-31-906,
					 15-31-907,
					 15-31-908,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.33 - Individual and Corporation - Movie and Television Industry and Related Media - Tax Credit › Rule 42.4.3305 - QUALIFIED EXPENDITURES (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-911, MCA IMP:
					 15-30-2101,
					 15-31-906,
					 15-31-907,
					 15-31-908,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.33 - Individual and Corporation - Movie and Television Industry and Related Media - Tax Credit › Rule 42.4.3306 - PENALTY AND INTEREST (Repealed)

Current through Register Vol. 13, July 5, 2024
AUTH:
					 15-31-911, MCA IMP:
					 15-30-2101,
					 15-31-906,
					 15-31-907,
					 15-31-908,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3401 - DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to terms used in this
				  subchapter:
(1) "Credit base" means
				the qualified production expenditures base or compensation base used to
				calculate media production or postproduction tax credits.
(2) "Credit year" means the calendar year
				allocated to a tax credit.
(3)
				"Crew member" means a person hired by a production company or a hired
				production company, including production staff members, that is not an actor,
				director, producer, or writer, and who is directly participating in a
				state-certified production. An individual who receives compensation that is
				less than Montana minimum wage as described in
				39-3-409,
				MCA, is not a crew member.
(4)
				"Employee" means the same as in
				15-30-2501, MCA, and
				for purposes of these rules also includes an owner, partner, shareholder, or
				member of a loan-out company to the extent the individual performed personal
				services on behalf of a loan-out company.
(5) "Hired production company" means a
				company, including a loan-out company, hired to undertake production functions
				that are directly related to principal photography on behalf of a production
				company. A hired production company agrees to provide the production company
				with all necessary information and documentation for the calculation of media
				production or media postproduction tax credits. A hired production company does
				not include a travel agency, travel company, insurance agency, lodging service,
				or equipment rental service.
(6)
				"In-studio facility and equipment," for the purpose of claiming the additional
				10 percent credit under
				15-31-1007(3)(b)(vi),
				MCA, means:
(a) a permanent, enclosed building
				or structure that a production company rents for a "qualified production
				activity," as defined under
				15-31-1003(16)(a),
				MCA.; and
(b) equipment (i.e.,
				personal property) that a production company rents for a "qualified production
				activity," as defined under
				15-31-1003(16)(a),
				MCA. The facility must not be used exclusively for storage and the equipment
				must be provided by the party renting the facility.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3402 - MEDIA PRODUCTION TAX CREDITS - DETERMINATION OF CREDIT BASE

Current through Register Vol. 13, July 5, 2024
(1) The media production tax credit is the
				sum of one or more of the production tax credits provided under
				15-31-1007,
				MCA. The basis for each tax credit is determined separately.
(a) Production expenditures, as defined in
				15-31-1003, MCA,
				include expenditures incurred by a production company or a hired production
				company, including preproduction expenses. Production expenditures paid to an
				entity which is also a loan-out company must be segregated from personal
				services as a separate item of expense. Production expenditures paid to another
				company, which is not a hired production company or a loan-out company, may be
				included regardless of whether the expenditures include compensation. The basis
				of an additional tax credit as provided in
				15-31-1007(3)(b)(v)
				through (vii), MCA, may include the same
				expenditure used under
				15-31-1007(3)(a)(i),
				MCA.
(b) Compensation, as described
				in
				15-31-1003(3),
				MCA, can only be used in one of the credits provided in
				15-31-1007(3)(b)(i)
				through (iv), MCA, and includes the portion
				of a payment to a loan-out company for personal services. Compensation incurred
				in Montana within six months of state certification of the production may be
				included.
(c) Payments to a
				loan-out company cannot be included in any credit base if the production
				company, its affiliate, or hired production company did not pay withholding on
				the compensation portion, as provided in
				15-31-1003(3),
				MCA, and ARM 42.4.3403.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3403 - REQUIRED INCOME TAX WITHHOLDING ON COMPENSATION PAID TO A LOAN-OUT COMPANY

Current through Register Vol. 13, July 5, 2024
(1) In accordance with
				15-31-1003(3)(c),
				MCA, and to be considered for inclusion in a production company's compensation
				base for a state-certified production, all production company personal services
				payments to any loan-out company must withhold Montana income taxes at the rate
				of 6.9%. The production company or its agent, affiliate, or hired production
				company may perform the act of withholding. The income tax withholding applies
				to payments made to a loan-out company that is related to personal services
				performed during a calendar year and must be paid by January 31 of the
				following year.
(2) The income tax
				withholding must be calculated for an employee of the loan-out company using
				the allocable amount of time the employee performed personal services in
				Montana.
(3) When the loan-out
				company payment involves more than one employee, the payment must be divided
				equally between all employees based on the total number of days of personal
				services rendered unless otherwise specified in the contract between the
				production company and the loan-out company.
(4) An allocation for the loan-out company
				payment attributable to the personal services rendered in Montana must be
				determined by making the following deductions, where applicable, from the total
				payment made to the loan-out company:
(a)
				personal services performed in another state;
(b) personal services performed in Montana
				for a production that is not a state-certified production;
(c) fringe benefits paid directly by the
				production company, its agent, its affiliate, or its hired production company;
				and
(d) payments not related to
				personal services such as but not limited to:
(i) rental of tangible personal
				property;
(ii) residuals or
				profit-sharing payments; or
(iii)
				royalty and image rights.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3406 - BASE INVESTMENT REQUIREMENT; ELECTION TO COMBINE NONQUALIFYING PRODUCTIONS

Current through Register Vol. 13, July 5, 2024
(1) If a production company initiates more
				than one state-certified production in a single tax year and one or more of
				them do not meet the base investment requirement, as provided in
				15-31-1005(1),
				MCA, the production company may elect to combine nonqualifying productions
				occurring in the same tax year to qualify all of the combined state-certified
				productions for the base investment requirement. This election is made on the
				media production tax credit application. When this election is made, all
				production expenditures must be combined into the base investment as if a
				single production had been certified; and the limitations to the media
				production tax credit apply only once on the total amount of base investment
				and credit base. If the production company claims the Montana screen credit
				under
				15-31-1007(3)(b)(viii),
				MCA, on a base investment of combined state-certified productions, the screen
				tax credit provided under
				15-31-1004(7),
				MCA, must appear on all of the media resulting from the combined productions.
				This production election is made prior to the election stated in ARM
				42.4.3408(2).
(2) When a production
				company elects to combine nonqualifying productions under this rule, the
				production company will receive only one UCRN for the combined state-certified
				productions, per credit year.
AUTH:
					 15-31-1012,
					 MCA; IMP:
					 15-31-1012,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3407 - TAX CREDIT FOR POSTPRODUCTION WAGES - CREDIT BASE

Current through Register Vol. 13, July 5, 2024
(1) The credit base for the postproduction
				tax credit equals the sum of hourly wages directly incurred in Montana for
				state-certified postproduction activities during a tax year. Postproduction
				activities related to a state-certified production begin on the day following
				the last day of principal photography in Montana. Postproduction activities
				performed in Montana for photography performed outside Montana qualify
				regardless of the date of principal photography.
(2) When an employee is not paid an hourly
				wage, the postproduction company must provide an hourly cost of the employee
				compensation based on a regular work week. No wages may be included in the
				postproduction credit base if the same wages are already included in a
				production credit base.
(3) The
				postproduction tax credit cannot exceed the total amount of compensation paid
				to postproduction company employees for personal services performed in Montana.
				For the purpose of this rule, compensation paid includes compensation paid in
				the first month following the tax year in which the wages included in the
				postproduction credit base were incurred.
(4) To be included in the postproduction
				credit base, postproduction wages must be directly related to a state-certified
				production. A wage is directly related to a qualified postproduction activity
				when the personal services rendered by the employee are necessary for the
				completion of the postproduction activity, as defined under
				15-31-1003(13),
				MCA. Administrative activities of the postproduction company such as
				secretarial, accounting, human resources, or marketing services are not
				directly related to qualified postproduction activities.
(5) The postproduction company must maintain
				current and ongoing paper or electronic employee timekeeping records of the
				hours spent by an employee on the state-certified postproduction activity. If
				no such records are kept, the employee wages shall be excluded from the
				postproduction credit base. Timekeeping records must contain the name of the
				employee, job title or work function, days and number of hours worked each day
				on a state-certified production, and the work location.
AUTH:
					 15-31-1012,
					 MCA; IMP:
					 15-31-1012,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3408 - CREDIT YEAR

Current through Register Vol. 13, July 5, 2024
(1) The credit year
				of a media production or postproduction tax credit is the calendar year in
				which the tax year of the production company or the postproduction company
				applying for the tax credit according to ARM 42.4.3411, or ARM 42.4.3412
				begins, except when:
(a) The department
				receives the submission of costs, required under
				15-31-1005,
				MCA, more than 60 calendar days after the end of principal photography or after
				the end of the tax year if the production is a multi-year production. In this
				case, the credit year is the calendar year following the calendar year in which
				the tax year of the production company or the postproduction company incurring
				the expenses begins.
(b) A
				production company makes an election as described in (2), in which case the
				credit year may not be earlier than the calendar year in which the second tax
				year begins; or
(c) The tax credit
				limit provided in 15-31-1010, MCA, is reached and the tax credit is allocated
				to a subsequent credit year.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3411 - MEDIA PRODUCTION TAX CREDIT APPLICATION

Current through Register Vol. 13, July 5, 2024
(1) To reserve a media production tax credit,
				a production company must submit a media production tax credit application
				(application) on a form provided by the department, including all supporting
				documentation provided in this rule, with payment of the fee required under
				15-31-1005,
				MCA. The department will not consider an application "filed" until:
(a) the production company, including its
				affiliates if the production company is a C corporation, in the state-certified
				production complies with
				15-31-1003(10),
				MCA;
(b) the production company
				has paid the required fee; and
(c)
				the supporting documentation for the application is complete, legible, and is
				presented in an orderly manner.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3412 - POSTPRODUCTION TAX CREDIT APPLICATION

Current through Register Vol. 13, July 5, 2024
(1) To
				reserve a postproduction tax credit, the postproduction company must submit a
				media postproduction tax credit application to the department, using the
				department's online portal and according to department procedures, each tax
				year the postproduction company is certified by the Montana Department of
				Commerce, including all supporting documentation provided in this rule, with
				payment of the statutory fee required under
				15-31-1005,
				MCA. The media postproduction tax credit application will not be considered
				"filed" until:
(a) the postproduction
				company, including its affiliates if the postproduction company is a C
				corporation, taking part in the state-certified postproduction complies with
				15-31-1003(8),
				MCA;
(b) the postproduction
				company has paid the required fee; and
(c) the application includes the
				documentation required in this rule presented in an orderly manner.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3413 - CERTIFIED PUBLIC ACCOUNTANT VERIFICATION REPORT

Current through Register Vol. 13, July 5, 2024
(1) For the purpose of complying with
				15-31-1006(3)(a),
				MCA, the verification report must include sufficient detail for the department
				to verify the accuracy of the expenditures and compensation used in the
				computation of any production or postproduction credit base or base investment,
				as described in this subchapter, and that the application is free from material
				misstatements.
(2) The verification
				report described in
				15-31-1006,
				MCA, must be issued by a certified public accountant (CPA) authorized to
				practice in Montana who must be unrelated to the production or postproduction
				company filing the media credit application to which the verification report
				relates.
(a) The CPA certification that a
				person is unrelated, as required under
				15-31-1006(2)(a),
				MCA, must also include the disclosure of any transactions for which the CPA has
				been retained as a consultant or an intermediary pertaining to any future
				transfers of the tax credit; including name and address of the parties.
(b) "Unrelated" means that the CPA
				is not:
(i) an employee of the production or
				postproduction company;
(ii) a
				holder of an interest directly or indirectly in the production or
				postproduction company. An indirect interest is an interest held by a spouse,
				lineal ascendant, lineal descendant, siblings, including step-brothers or
				step-sisters, step-children and step-grandchildren;
(iii) an employee of a firm, if one of the
				owners or associates of the firm holds direct or indirect interest in the
				production or postproduction company; or
(iv) a recipient of compensation for the
				verification of the costs that is not commensurate with industry
				standards.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3414 - OVERALL CALENDAR YEAR LIMITATION

Current through Register Vol. 13, July 5, 2024
(1) The
				tax credit limit in 15-31-1010, MCA, applies to the aggregate amount of
				production and postproduction tax credits issued in Montana for a credit year.
(2) The aggregate amount of tax
				credit reserved is determined in the following order:
(a) A production or postproduction company
				reserves the tax credit for a credit year as determined in ARM
				42.4.3408.
(b) A credit is reserved
				on the date a complete media tax credit application is filed based on the
				amount requested on the application.
(c) Amounts reserved are aggregated on a
				"first-come, first-served" basis for each tax credit year until the tax credit
				limit amount in 15-31-1010, MCA, is reached. If two or more production
				companies file their media production tax credit application simultaneously, or
				if tax credit reservations are postponed on the same day to a credit year
				according to (d), priority will be given to the production company with the
				lesser base investment.
(d) Any
				amount reserved in excess of the overall limitation amount for a given credit
				year must be included in the aggregate credit amount of the earliest following
				credit year for which the total amount of credit reserved is less than the
				applicable overall limitation amount for that year. If, after review by the
				department, a reserved credit amount for a given credit year is not issued, the
				difference between the total credit amount reserved and the amount issued may
				only be used for credit amounts reserved but not yet issued on a first-come,
				first-served basis.
(e) Once a
				credit amount is verified and a final determination is reached, the amount of
				tax credit reserved becomes issued for the credit year allocated according to
				this rule.
(f) The credit year of
				a media production tax credit issued cannot be changed.
(g) The department will provide
				contemporaneous information to the Montana Department of Commerce to update the
				amount of tax credit reserved on its website.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3417 - VALIDATION OF TAX CREDIT - APPEAL RIGHTS

Current through Register Vol. 13, July 5, 2024
(1)
				For each media production or postproduction tax credit application, the
				department must review and validate tax credit amounts that are allowed to be
				claimed against Montana income tax liability. Each tax credit amount validated
				for each state-certified production must be assigned a UCRN. If a tax credit
				amount is allocated to several credit years, a UCRN must be issued for each
				credit year. The tax credit is considered issued on the date the UCRN is issued
				to the applicant.
(2) If, upon the
				review of the production media tax credit application, the department adjusts
				the tax credit amount claimed and reserved, the department must provide the
				applicant with a written justification of the reasons for any adjustment. The
				applicant has 30 days from the date of the adjustment letter to accept or
				appeal the department's adjustment, as provided under
				15-1-216,
				MCA. Once a final determination is made, the department will issue the
				appropriate tax credit as provided in (1).
(3) If the applicant does not appeal the
				department's adjustment, the adjustment becomes the department's final
				determination for the tax credit amount. The applicant may inform the
				department at any time that it accepts the department's determination.
(4) Once a final determination is
				reached, in addition to requirements in
15-31-1005(3), MCA, the department will provide the Montana
				  Department of Commerce with a letter providing:
(a) the amount of base investment verified by
				the department;
(b) the credit base
				retained;
(c) a UCRN per credit
				year;
(d) a first credit year
				reference in which the tax credit can be claimed; and
(e) the ending credit year, which is the last
				credit year the tax credit may be claimed on an income tax return.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3418 - CLAIM OF TAX CREDITS ON AN INCOME TAX RETURN

Current through Register Vol. 13, July 5, 2024
(1) A valid media production or
				postproduction tax credit can be claimed against Montana income tax liability
				at the earliest on an income tax return with a tax year beginning in the credit
				year indicated in the UCRN.
(2) A
				valid media production tax credit can be claimed against Montana income tax
				liability regardless of whether the taxpayer has directly or indirectly
				incurred the expenses relating to the tax credit.
(3) If a valid media production or
				postproduction tax credit is claimed by a grantor trust, the tax credit must
				flow entirely to the grantor. If it is claimed by a non-grantor trust or an
				estate, the tax credit must be allocated to the trust or estate in proportion
				of the Montana adjusted total income reduced by the Montana income distribution
				deduction over the Montana adjusted total income.
(4) If a valid tax credit is claimed by an S
				corporation, the tax credit must be distributed based on each shareholder's
				distributive share of income or loss.
(5) If a valid tax credit is claimed by a
				partnership, the tax credit must be distributed based on each partner's
				distributive share of income or loss, unless a special allocation applies. In
				order to comply with
				15-31-1007(7)(c),
				MCA, and
				15-31-1009(6)(c),
				MCA, special allocations of production or postproduction tax credit in a
				partnership agreement are not allowed unless the capital account of each
				partner receiving a Montana Schedule K-1 is adjusted in proportion of the
				amount of tax credit received.
AUTH:
					 15-31-1012,
					 MCA; IMP:
					 15-1-201,
					 15-31-1012,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3419 - CARRYOVER PERIOD

Current through Register Vol. 13, July 5, 2024
(1) If a taxpayer
				has not claimed or transferred the media production tax credit or claimed the
				postproduction tax credit on or before the tax year beginning in the ending
				credit year indicated on the UCRN, the tax credit is no longer available to be
				used against income tax liabilities. Each year, a taxpayer must include on
				their income tax return:
(a) the amount of
				tax credit available for current and each preceding credit year;
(b) the amount of tax credit that was
				available for each tax year and transferred during the tax year; and
(c) the carryover amount per credit year.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.34 - Montana Economic Development Industry Advancement Act (MEDIAA) Tax Credits › Rule 42.4.3420 - TRANSFER OF PRODUCTION TAX CREDIT

Current through Register Vol. 13, July 5, 2024
(1) A
				taxpayer allowed to claim the production tax credit may elect to transfer any
				unused tax credit for a minimum of 85% of its value. The transferor must notify
				the department of the transfer and pay a transfer fee equal to two percent of
				the value of the tax credit no later than 30 days following the transfer of the
				tax credit. Time computation for deadlines falling on weekends or holidays
				shall conform to
				1-1-307,
				MCA, which provides any acts required to be done may be performed upon the next
				business day with the same effect as if it had been performed upon the day
				appointed.
(2) The transfer
				notification must be made on a form provided by the department and include:
(a) All UCRNs associated with the tax credits
				transferred;
(b) The tax credit
				balances before and after the transfer for each tax credit associated with a
				UCRN;
(c) The tax identification
				numbers of the transferee and the transferor;
(d) The overall amount of tax credit
				transferred, and the price paid for each tax credit associated with a UCRN;
				and
(e) An acknowledgment by the
				transferee and the transferor that the transfer is valid, and that the
				transferee may claim the tax credit on a tax return only if the notification
				required in this rule is filed and the statutory fee is paid.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4101 - ALTERNATIVE ENERGY PRODUCTION CREDIT DEFINITIONS

Current through Register Vol. 13, July 5, 2024
The following definitions apply to this subchapter:
(1) "Alternative renewable energy source" is
				defined in
				15-6-225, MCA, and means an
				inexhaustible source of energy that is not in general commercial use and
				specifically includes:
(a) solar, wind, and
				geothermal energy;
(b) the
				conversion of biomass;
(c) fuel
				cells that do not require hydrocarbon fuel;
(d) small hydroelectric generators producing
				less than one megawatt of electricity; and
(e) methane from solid waste.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4102 - ELECTRICAL GENERATION AND TRANSMISSION FACILITY - QUALIFICATION AND PUBLICATION (REPEALED)

Current through Register Vol. 13, July 5, 2024
15-1-201,
					 15-30-305,
					 15-31-501,
					 15-32-407, MCA; IMP,
					 15-24-3001,
					 15-32-403,
					 15-35-103,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4103 - ELECTRICAL GENERATION AND TRANSMISSION FACILITY - REPORTING (REPEALED)

Current through Register Vol. 13, July 5, 2024
15-1-201,
					 15-30-305,
					 15-31-501,
					 15-32-407, MCA; IMP,
					 15-24-3001,
					 15-32-403,
					 15-35-103,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4104 - ELECTRICAL GENERATION AND TRANSMISSION FACILITY - VERIFICATION (REPEALED)

Current through Register Vol. 13, July 5, 2024
15-1-201,
					 15-30-305,
					 15-31-501,
					 15-32-407, MCA; IMP,
					 15-24-3001,
					 15-32-403,
					 15-35-103,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4105 - ALTERNATE RENEWABLE ENERGY GENERATION FACILITIES PROPERTY TAX EXEMPTION - LESS THAN ONE MEGAWATT

Current through Register Vol. 13, July 5, 2024
(1) For machinery
				and equipment to qualify for the alternative renewable energy generation
				facilities exemption, the facility must be powered by an alternative renewable
				energy source as defined in
				90-4-102, MCA, and be less than
				one megawatt.
(2) To obtain the
				alternative renewable energy generation facilities tax exemption for machinery
				and equipment that has a nameplate capacity of less than one megawatt, the
				property owner of record or the property owner's agent must submit an
				application to the Department of Revenue, P.O. Box 5805, Helena, Montana
				59604-5805, on or before March 31 of the year which an exemption is
				sought.
15-1-201,
					 15-1-217, MCA; IMP,
					 15-6-225,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4106 - APPEAL RIGHTS

Current through Register Vol. 13, July 5, 2024
(1) For
				energy-related property tax exemptions or property tax rate reductions, an
				applicant may appeal the department's decision to the State Tax Appeal Board
				within 30 days of receiving notice of denial from the department.
(2) For energy-related income tax credits, an
				individual or entity claiming the credit may appeal the department's denial or
				other adjustment of the credit in accordance with ARM
				42.2.510 and
				42.2.613 through
				42.2.621.
15-1-201, MCA; IMP,
					 15-1-211,
					 15-2-302,
					 15-31-501,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4107 - COMMERCIAL USE AND OTHER REQUIREMENTS FOR COMMERCIAL AND NET METERING SYSTEMS ELIGIBLE FOR THE INCOME TAX CREDIT

Current through Register Vol. 13, July 5, 2024
(1) The
				credit against individual income and corporate income taxes provided in
				15-32-402, MCA, is limited to 35
				percent of the eligible costs for investments in depreciable commercial systems
				and net metering systems. Property placed in service for personal use does not
				qualify for this credit, but may qualify for the alternative energy system
				credit provided in
				15-32-201, MCA, and ARM
				42.4.104.
(2) The credit may not be claimed against
				taxes generally, but can only be applied against taxes due as a result of
				Montana taxable or net income produced by certain manufacturing plants, energy
				sales to new or expanded business facilities, or the alternative energy
				generating equipment itself. The determination of this income and associated
				tax is made on Form AEPC, Alternative Energy Production Credit. Examples of
				qualification for the credit are:
(a) Company
				A manufactures windmills in Montana. Company A invests in and installs
				windmills to supplement the electricity needs of its manufacturing plant.
				Company A can claim the credit to offset taxes on income from sale of the
				windmills.
(b) Company B invests in
				a windmill farm. Company C is a new manufacturing plant in Montana. Company B
				enters into a direct sales contract to sell electricity to Company C. Company B
				is eligible to claim the credit to offset taxes on income from the sale of
				electricity to Company C.
(c)
				Company D invests in a windmill farm. Company D sells the electricity generated
				by its windmill farm to the power grid. The credit is available for Company D
				to offset taxes on income from the sale of the electricity.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4108 - PROPERTY TAX EXEMPTION - NONCOMMERCIAL ELECTRICAL GENERATION MACHINERY AND EQUIPMENT

Current through Register Vol. 13, July 5, 2024
(1) In order to
				obtain a property tax exemption for noncommercial electrical generation
				machinery and equipment, the property owner of record or the property owner's
				agent must notify the department on its annual reporting form that the
				existence of noncommercial electrical generation machinery and equipment is in
				their ownership or use.
(2) The
				department will request from the property owner the appropriate information to
				determine the amount of the property tax exemption. The department will also
				verify with the Department of Environmental Quality that the electrical
				generation machinery and equipment comply with the provisions of
				75-2-211 and
				75-2-215, MCA, and the supporting
				documentation. The department will determine the amount of the property tax
				exemption. The applicant will be advised in writing of the decision.
15-1-201, MCA; IMP,
					 15-6-225,
					 75-2-211,
					 75-2-215,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4109 - ALTERNATIVE ENERGY INCOME TAX CREDITS FOR GENERATION FACILITIES LOCATED WITHIN EXTERIOR BOUNDARIES OF A MONTANA INDIAN RESERVATION - TRIBAL EMPLOYMENT AGREEMENT

Current through Register Vol. 13, July 5, 2024
(1) To qualify for
				the 15-year carry-forward provision authorized in
				15-32-404, MCA, for investing in a
				five megawatt or larger commercial system located within the exterior
				boundaries of a Montana Indian reservation, a copy of the signed agreement with
				the tribal government of the reservation must be attached to the applicable tax
				return filed for the first taxable period for which the credit is
				reported.
(2) The signed agreement
				must include the details of the:
(a) training
				and employment of tribal members in the construction;
(b) tribal members involvement in the
				operation; and
(c) maintenance of
				the commercial system.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4110 - WIND ENERGY TAX CREDITS FOR GENERATION FACILITIES LOCATED ON SCHOOL TRUST LAND (REPEALED)

Current through Register Vol. 13, July 5, 2024
15-32-407, MCA; IMP,
					 15-31-501,
					 15-32-403,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4111 - DEDUCTIBILITY OF IMPACT FEE FOR LOCAL GOVERNMENT AND SCHOOL DISTRICTS (REPEALED)

Current through Register Vol. 13, July 5, 2024
15-30-305,
					 15-31-501, MCA; IMP,
					 15-24-3005,
					 15-30-111,
					 15-30-121,
					 15-31-501,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4112 - RECORDS REQUIRED - AUDIT

Current through Register Vol. 13, July 5, 2024
(1) Taxpayers
				shall maintain records necessary to support their entitlement to and
				qualification for the property tax exemption, property tax abatement, or income
				tax credit.
(2) For the Alternative
				Energy Production Credit, such records must include:
(a) if the alternative energy renewable
				source is a small hydroelectric generator producing less than one megawatt of
				electricity or the commercial system is a five megawatt or larger system
				located within the exterior boundaries of a Montana Indian reservation, source
				documents detailing the total capacity of the system;
(b) total investment in the commercial or net
				metering system;
(c) gross revenues
				associated with the commercial or net metering system;
(d) expenses associated with the commercial
				or net metering system; and
(e) if
				the alternative energy equipment supplies the basic energy needed to a new or
				expanded business facility as referenced in
				15-32-402(1)(b),
				MCA, a copy of the direct sales contract.
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4113 - REQUEST FOR INFORMATION (REPEALED)

Current through Register Vol. 13, July 5, 2024
15-1-201,
					 15-30-305,
					 15-32-407, MCA; IMP,
					 15-24-3001,
					 15-31-501,
					 15-32-403,
					 15-35-103,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4115 - PROPERTY TAX EXEMPTION FOR LAND ADJACENT TO TRANSMISSION LINE RIGHT-OF-WAY OR EASEMENT

Current through Register Vol. 13, July 5, 2024
(1) The property
				owner of record, the property owner's agent, or the operator of a transmission
				line must make application to the Department of Revenue's (department) local
				county office for an exemption from property taxes for land that is within 660
				feet on either side of the midpoint of a transmission line right-of-way or
				easement. The transmission line must have a design capacity of 30
				megavoltamperes or greater, as certified by the Department of Environmental
				Quality (DEQ), and be constructed after January 1, 2007. Application will be
				made on a form available from the department's local county office before March
				1 of the tax year for which the exemption is sought. The DEQ certification
				shall be attached to and be part of the application for exemption under this
				part.
(2) The applicant must
				provide to the department's local county office, along with the application, a
				legal description for the property described on the application provided for in
				(1) and a digitized certificate of survey prepared by a surveyor registered
				with the Board of Professional Engineers and Professional Land Surveyors
				provided for in
				2-15-1763, MCA, which specifically
				provides the boundaries of the property listed on the application provided for
				in (1). The acceptable format for the digitized certificate of survey is an
				Environmental System Research Institute (ESRI) Shapefile file format in State
				Plane single zone projection. Shapefiles spatially describe points, polygons,
				and lines. State Plane refers to the State Plane Coordinate System.
(3) The application will be forwarded to the
				department's Property Assessment Division (PAD) office in Helena referred to as
				the "central office." The PAD central office will process the application and
				determine if the property meets the requirements of exemption.
(4) The central office will issue a letter
				indicating whether the application for exemption has been granted or denied and
				provide a copy of the letter to the applicant, the local county office, and the
				Business and Income Taxes Division.
(5) If the transmission line is either
				constructed or under construction after January 1 of a tax year and an
				application for exemption is submitted for the right-of-way or easement by
				March 1 of that tax year and the property qualifies for the exemption, the
				exemption will be effective for the whole tax year.
AUTH:
					 15-24-3116, MCA; IMP:
					 2-15-1763,
					 15-6-229,
					 MCA
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.5 - FILING AND REMITTANCE › Subchapter 42.5.1 - State Debt Collection Service › Rule 42.5.101 - PRE-CERTIFICATION REQUEST FOR ASSISTANCE (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 17-4-110, MCA; IMP, Sec.
					 17-4-104,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.5 - FILING AND REMITTANCE › Subchapter 42.5.1 - State Debt Collection Service › Rule 42.5.102 - CERTIFICATION TO DEPARTMENT (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 17-4-110, MCA; IMP, Sec.
					 17-4-104,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.5 - FILING AND REMITTANCE › Subchapter 42.5.1 - State Debt Collection Service › Rule 42.5.103 - REVIEW BY DEPARTMENT (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 17-4-110, MCA; IMP, Sec.
					 17-4-104,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.5 - FILING AND REMITTANCE › Subchapter 42.5.1 - State Debt Collection Service › Rule 42.5.104 - WRITE-OFF BY AGENCY - ASSIGNMENT TO DEPARTMENT (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 17-4-110, MCA; IMP, Sec.
					 17-4-104,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.5 - FILING AND REMITTANCE › Subchapter 42.5.1 - State Debt Collection Service › Rule 42.5.105 - OFFSET OF TAX REFUNDS (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 17-4-110, MCA; IMP, Sec.
					 17-4-105,
					 MCA;
Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.5 - FILING AND REMITTANCE › Subchapter 42.5.1 - State Debt Collection Service › Rule 42.5.106 - WRITE-OFF OF BAD DEBT BY DEPARTMENT (REPEALED)

Current through Register Vol. 13, July 5, 2024
Sec.
					 17-4-110, MCA; IMP, Sec.
					 17-4-107,
					 MCA;