Montana Administrative Code

42.4.3103 CREDIT FOR CONTRACTOR'S GROSS RECEIPTS TAX - CORPORATION INCOME TAX 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 corpora…

42.4.3202 CREDIT FOR INCREASING RESEARCH ACTIVITIES 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 limit…

42.4.3203 INFORMATION REQUIRED OF A MULTISTATE BUSINESS CLAIMING A CREDIT FOR INCREASING RESEARCH ACTIVITIES 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 …

42.4.3301 DEFINITIONS (REPEALED) Authorizing statute(s): 15-31-911, MCA Implementing statute(s): 15-31-906, 15-31-907, 15-31-908, 15-31-911, MCA History: NEW, 2006 MAR p. 1960, Eff. 8/11/06; AMD, 2008 MAR p. 64, Eff. 1/18/08; REP, 2017 MAR p. 2095, Eff. 11/10/17.

42.4.3302 STATE CERTIFICATION (REPEALED) Authorizing statute(s): 15-31-911, MCA Implementing statute(s): 15-31-906, 15-31-907, 15-31-908, 15-31-911, MCA History: NEW, 2006 MAR p. 1960, Eff. 8/11/06; REP, 2017 MAR p. 2095, Eff. 11/10/17.

42.4.3303 SUBMISSION OF COSTS AND APPLICATION FOR TAX CREDIT (REPEALED) Authorizing statute(s): 15-30-2620, 15-31-911, MCA Implementing statute(s): 15-30-2103, 15-31-906, 15-31-907, 15-31-908, 15-31-911, MCA History: NEW, 2006 MAR p. 1960, Eff. 8/11/06; AMD, 2008 MAR p. 64, Eff. …

42.4.3304 CERTIFICATION FOR EMPLOYMENT PRODUCTION TAX CREDIT (REPEALED) Authorizing statute(s): 15-31-911, MCA Implementing statute(s): 15-30-2101, 15-31-906, 15-31-907, 15-31-908, MCA History: NEW, 2006 MAR p. 1960, Eff. 8/11/06; AMD, 2008 MAR p. 64, Eff. 1/18/08; AMD, 2010 MAR …

42.4.3305 QUALIFIED EXPENDITURES (REPEALED) Authorizing statute(s): 15-31-911, MCA Implementing statute(s): 15-30-2101, 15-31-906, 15-31-907, 15-31-908, MCA History: NEW, 2006 MAR p. 1960, Eff. 8/11/06; AMD, 2008 MAR p. 64, Eff. 1/18/08; AMD, 2010 MAR p. 1209, Eff. 5/14/10; REP, …

42.4.3306 PENALTY AND INTEREST (REPEALED) Authorizing statute(s): 15-31-911, MCA Implementing statute(s): 15-30-2101, 15-31-906, 15-31-907, 15-31-908, MCA History: NEW, 2006 MAR p. 1960, Eff. 8/11/06; AMD, 2010 MAR p. 1209, Eff. 5/14/10; REP, 2017 MAR p. 2095, Eff. 11/10/17.

42.4.3401 DEFINITIONS The following definitions apply to terms used in this subchapter: "Credit base" means the qualified production expenditures base or compensation base used to calculate media production or postproduction tax credits. "Credit year" means the calendar year allo…

42.4.3402 MEDIA PRODUCTION TAX CREDITS - DETERMINATION OF CREDIT BASE 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. Production expenditures, as define…

42.4.3403 REQUIRED INCOME TAX WITHHOLDING ON COMPENSATION PAID TO A LOAN-OUT COMPANY 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…

42.4.3406 BASE INVESTMENT REQUIREMENT; ELECTION TO COMBINE NONQUALIFYING PRODUCTIONS 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), …

42.4.3407 TAX CREDIT FOR POSTPRODUCTION WAGES – CREDIT BASE 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-…

42.4.3408 CREDIT YEAR 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…

42.4.3411 MEDIA PRODUCTION TAX CREDIT APPLICATION 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,…

42.4.3412 POSTPRODUCTION TAX CREDIT APPLICATION 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 ye…

42.4.3413 CERTIFIED PUBLIC ACCOUNTANT VERIFICATION REPORT 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 …

42.4.3414 OVERALL CALENDAR YEAR LIMITATION 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. The aggregate amount of tax credit reserved is determined in the following order: …

42.4.3417 VALIDATION OF TAX CREDIT - APPEAL RIGHTS 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 …

42.4.3418 CLAIM OF TAX CREDITS ON AN INCOME TAX RETURN 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. A valid med…

42.4.3419 CARRYOVER PERIOD 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 a…

42.4.3420 TRANSFER OF PRODUCTION TAX CREDIT 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 o…

42.4.401 DEFINITIONS The following definitions apply to this subchapter: "Another state" or "other state" means a state of the United States other than Montana, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, and …

42.4.402 CREDIT FOR INCOME TAXES PAID TO ANOTHER STATE OR COUNTRY A Montana resident is allowed a nonrefundable credit against their Montana income tax liability for: income taxes they paid to another state or foreign country on income which is also subject to Montana income tax;…

42.4.403 COMPUTATION OF CREDIT FOR TAX PAID TO ANOTHER STATE OR COUNTRY SPECIAL APPLICATIONS In determining the tax credit allowed, the computations in this rule must be made separately for each state or foreign country's income tax with respect to which a credit is claimed. If t…

42.4.404 DEDUCTIONS NOT ALLOWED WHEN CREDIT CLAIMED (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2110, MCA History: Eff. 12/31/72; AMD and TRANS, from ARM 42.15.422, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2010 MAR p. 1211, Eff. 5/14/1…

42.4.4101 ALTERNATIVE ENERGY PRODUCTION CREDIT DEFINITIONS (REPEALED) (REPEALED) Authorizing statute(s): 15-1-201, 15-30-2620, 15-31-501, 15-32-407, MCA Implementing statute(s): 15-32-402, 15-32-404, MCA History: NEW, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2010 MAR p. 1407, Eff. 6/…

42.4.4102 ELECTRICAL GENERATION AND TRANSMISSION FACILITY – QUALIFICATION AND PUBLICATION (REPEALED) Authorizing statute(s): 15-1-201, 15-30-305, 15-31-501, 15-32-407, MCA Implementing statute(s): 15-24-3001, 15-32-403, 15-35-103, MCA History: NEW, 2002 MAR p. 2924, Eff. 10/18/02…

42.4.4103 ELECTRICAL GENERATION AND TRANSMISSION FACILITY – REPORTING (REPEALED) Authorizing statute(s): 15-1-201, 15-30-305, 15-31-501, 15-32-407, MCA Implementing statute(s): 15-24-3001, 15-32-403, 15-35-103, MCA History: NEW, 2002 MAR p. 2924, Eff. 10/18/02; AMD and TRANS, fro…

42.4.4104 ELECTRICAL GENERATION AND TRANSMISSION FACILITY – VERIFICATION (REPEALED) Authorizing statute(s): 15-1-201, 15-30-305, 15-31-501, 15-32-407, MCA Implementing statute(s): 15-24-3001, 15-32-403, 15-35-103, MCA History: NEW, 2002 MAR p. 2924, Eff. 10/18/02; AMD and TRANS, …

42.4.4106 APPEAL RIGHTS (REPEALED) (REPEALED) Authorizing statute(s): 15-1-201, MCA Implementing statute(s): 15-1-211, 15-2-302, 15-31-501, MCA History: NEW, 2002 MAR p. 1094, Eff. 4/12/02; AMD and TRANS, from 42.4.112, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2010 MAR p. 1407, Eff. …

42.4.4107 COMMERCIAL USE AND OTHER REQUIREMENTS FOR COMMERCIAL AND NET METERING SYSTEMS ELIGIBLE FOR THE INCOME TAX CREDIT (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2620, 15-31-501, 15-32-407, MCA Implementing statute(s): 15-32-402, 15-32-404, 15-32-406, MCA History: NE…

42.4.4109 ALTERNATIVE ENERGY INCOME TAX CREDITS FOR GENERATION FACILITIES LOCATED WITHIN EXTERIOR BOUNDARIES OF A MONTANA INDIAN RESERVATION - TRIBAL EMPLOYMENT AGREEMENT (REPEALED) (REPEALED) Authorizing statute(s): 15-1-201, 15-30-2620, 15-31-501, 15-32-407 MCA Implementing sta…

42.4.4110 WIND ENERGY TAX CREDITS FOR GENERATION FACILITIES LOCATED ON SCHOOL TRUST LAND (REPEALED) Authorizing statute(s): 15-32-407, MCA Implementing statute(s): 15-31-501, 15-32-403, MCA History: NEW, 2002 MAR p. 1094, Eff. 4/12/02; AMD and TRANS, from ARM 42.4.116, 2004 MAR p…

42.4.4111 DEDUCTIBILITY OF IMPACT FEE FOR LOCAL GOVERNMENT AND SCHOOL DISTRICTS (REPEALED) Authorizing statute(s): 15-30-305, 15-31-501, MCA Implementing statute(s): 15-24-3005, 15-30-111, 15-30-121, 15-31-501, MCA History: NEW, 2002 MAR p. 1094, Eff. 4/12/02; AMD and TRANS, from…

42.4.4112 RECORDS REQUIRED - AUDIT (REPEALED) (REPEALED) Authorizing statute(s): 15-1-201, 15-30-2620, 15-31-501, 15-32-407, MCA Implementing statute(s): 15-32-402, 15-32-404, 15-32-405, 15-32-406, MCA History: NEW, 2002 MAR p. 2924, Eff. 10/18/02; AMD and TRANS, from ARM 42.4.11…

42.4.4113 REQUEST FOR INFORMATION (REPEALED) Authorizing statute(s): 15-1-201, 15-30-305, 15-32-407, MCA Implementing statute(s): 15-24-3001, 15-31-501, 15-32-403, 15-35-103, MCA History: NEW, 2002 MAR p. 2924, Eff. 10/18/02; AMD and TRANS, from ARM 42.4.120, 2004 MAR p. 1965, Ef…

42.4.4115 PROPERTY TAX EXEMPTION FOR LAND ADJACENT TO TRANSMISSION LINE RIGHT-OF-WAY OR EASEMENT 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 …

42.4.501 DEFINITIONS (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2618, MCA Implementing statute(s): 15-30-2103, 15-30-2104, 15-30-2301, MCA History: NEW, 2004 MAR p. 2600, Eff. 10/22/04; AMD, 2010 MAR p. 1211, Eff. 5/14/10; REP, 2024 MAR p. 2162, Eff. 9/7/24.

42.4.502 CAPITAL GAIN CREDIT (REPEALED) (REPEALED) Authorizing statute(s): 15-30-2618, MCA Implementing statute(s): 15-30-2104, 15-30-2106, 15-30-2301, MCA History: NEW, 2004 MAR p. 2600, Eff. 10/22/04; AMD, 2008 MAR p. 57, Eff. 1/18/08; AMD, 2010 MAR p. 1211, Eff. 5/14/10; AMD, …

42.4.601 DEFINITIONS (REPEALED) Authorizing statute(s): 15-30-2620, MCA Implementing statute(s): 15-30-2154, 15-30-2370, MCA NEW, 2004 MAR p. 1965, Eff. 8/20/04 History: AMD, 2010 MAR p. 1211, Eff. 5/14/10; REP, 2017 MAR p. 2095, Eff. 11/10/17.

42.4.602 RURAL PHYSICIAN'S CREDIT -- QUALIFICATIONS -- LIMITATIONS (REPEALED) Authorizing statute(s): 15-30-2372, MCA Implementing statute(s): 15-30-2370, 15-30-2371, MCA History: NEW, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2010 MAR p. 1211, Eff. 5/14/10; REP, 2017 MAR p. 2095, Eff…

42.4.603 RURAL PHYSICIAN'S CREDIT - REPAYMENT (REPEALED) Authorizing statute(s): 15-30-2372, MCA Implementing statute(s): 15-30-2371, MCA History: NEW, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2010 MAR p. 1211, Eff. 5/14/10; REP, 2017 MAR p. 2095, Eff. 11/10/17.

42.4.702 QUALIFYING FOR THE PROPERTY TAX CREDIT UNDER 15-30-2336, MCA (REPEALED) Authorizing statute(s): 15-1-201, 15-30-2104, 15-30-2636, MCA Implementing statute(s): 15-1-201, 15-30-2636, MCA History: NEW, 2008 MAR p. 58, Eff. 1/18/08; AMD, 2010 MAR p. 1211, Eff. 5/14/10; REP, …

42.4.703 CALCULATION OF THE REFUNDABLE INDIVIDUAL INCOME TAX CREDIT UNDER 15-30-2336, MCA (REPEALED) Authorizing statute(s): 15-30-2336, MCA Implementing statute(s): 15-6-134, 15-6-222, 15-30-2336, MCA History: NEW, 2008 MAR p. 58, Eff. 1/18/08; AMD; 2010 MAR p. 1211, Eff. 5/14/1…

42.4.801 DEFINITIONS The following definitions apply to terms used in this subchapter: "School district," for the purposes of this rule, means a Montana public elementary school district or public high school district, or any of the three state-funded public schools:Montana Schoo…