Montana Title 15. Taxation § 15-31-1010. Limitation of tax credits--allocation--fee

Current as of January 01, 2024 | Updated by Findlaw Staff

(1)(a) The department of commerce may grant to applicants pursuant to 15-31-1004 the authority to apply for the tax credits provided for in 15-31-1007 and 15-31-1009.

(b) The authorization by the department of commerce to apply for a credit does not guarantee the credit. A taxpayer authorized to apply for a credit pursuant to 15-31-1004 and this section must meet the requirements of 15-31-1005 through 15-31-1009 and subsections (2) and (3) of this section.

(c) The department of commerce shall make reasonable efforts to post on its website the amount of tax credits available and not yet allocated.

(2)(a) Total claims for the tax credits provided for in 15-31-1007 and 15-31-1009 may not exceed $12 million per calendar year and must be allocated as provided in subsection (2)(b).

(b) Except as provided in subsection (2)(c), credits under 15-31-1007 and 15-31-1009 are allocated as follows:

(i) $12 million is allocated annually for credits approved prior to December 31, 2024, until the year when all of the approved credits for productions that occurred in years before 2025 are claimed, and after all carry forward authority has expired; and

(ii) once the credits approved prior to December 31, 2024, are claimed, the remainder must be allocated as follows:

(A) 10% to any production company or postproduction company on a first-come, first-served basis;

(B) 10% for independent film productions;

(C) 40% for media production credits derived from any portion of base investment related to the rental cost of qualified Montana facilities; and

(D) 40% for domiciled companies.

(c) By April 1 of each year following the year the production expenditures were incurred or the compensation was paid, any balance not claimed under subsection (2)(b) for the prior year is available on a first-come, first-served basis in addition to the amount allocated under subsection (2)(b)(i). Any unclaimed credit balance that becomes available under this section is subject to a 2% fee.

(3)(a) A taxpayer whose claim for a credit from a production occurring prior to January 1, 2025, is approved but is disallowed because the calendar year limit has been reached may use the credit in the next calendar year. The transfer of the credit to the next calendar year does not extend the carry forward periods provided for in 15-31-1007(5) or 15-31-1009(4).

(b) If a claim is disallowed because the calendar year limit has been reached, the department of revenue may waive penalties and interest pursuant to 15-1-216.

(c) The department of revenue shall make reasonable efforts to post on its website the amount of credits available and not yet claimed.

(4) The fee provided for in subsection (2)(c) must be deposited in the account provided for in 15-31-1013 and used for film industry workforce training.

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Cite this article: FindLaw.com - Montana Title 15. Taxation § 15-31-1010. Limitation of tax credits--allocation--fee - last updated January 01, 2024 | https://codes.findlaw.com/mt/title-15-taxation/mt-code-ann-sect-15-31-1010/

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