Montana Code 15-31-1005. Submission of costs — fee
15-31-1005. Submission of costs — fee. (1) Prior to claiming the media production tax credit provided for in 15-31-1007 or the tax credit for postproduction wages provided for in 15-31-1009, a production company or postproduction company must be approved to claim the credit by the department of commerce and shall submit costs to the department of revenue as provided in this section. A taxpayer may not claim a credit provided for in 15-31-1007 or 15-31-1009 unless the costs have been approved as provided in this section. The submission of cost information must be accompanied by a fee as follows:
Terms Used In Montana Code 15-31-1005
- Base investment: means the amount expended by a production company as production expenditures and compensation incurred in this state that are directly used in a state-certified production. See Montana Code 15-31-1003
- Compensation: means Montana wages, salaries, commissions, payments to a loan-out company subject to the provisions of subsection (3)(c), union benefits, fringe benefits, and any other form of remuneration paid to employees for personal services performed in this state. See Montana Code 15-31-1003
- Postproduction company: means a company that:
(i)maintains a business location physically located in this state;
(ii)is engaged in qualified postproduction activities;
(iii)meets the requirements of 15-31-1005(4); and
(iv)has been approved by the department of commerce to claim the credit provided for in 15-31-1009. See Montana Code 15-31-1003
- Production company: means a company primarily engaged in qualified production activities that have been approved by the department of commerce. See Montana Code 15-31-1003
- Qualified production: means a new film, video, or digital project including only feature films, series for theaters, television, or streaming, pilots, movies and scripted shows made for television or streaming, televised commercial advertisements, music videos, corporate videos, industrial films, production for website creation, television specials, sports events, video games, interactive entertainment, prereleased interactive games, and sound recording projects used in a feature film, series, pilot, or movie for television. See Montana Code 15-31-1003
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- State-certified production: means a production engaged in qualified production activities and certified by the department of commerce as provided in 15-31-1004. See Montana Code 15-31-1003
(a)for a production company with a base investment of less than $350,000, $500;
(b)for a production company with a base investment of $350,000 or more, $1,000;
(c)for a postproduction company claiming the credit provided for in 15-31-1009, $1,000.
(2)(a) A production company wishing to claim or transfer the tax credit for media production provided for in 15-31-1007 shall submit to the department of revenue detailed information on production expenditures and compensation paid in connection with the state-certified production. Production expenditures and compensation paid must be submitted:
(i)by the last day of the third year following the year in which principal photography ended; or
(ii)for a state-certified production for which expenditures will be claimed for multiple tax years:
(A)annually, if the production company chooses to submit production expenditures and compensation paid within each year; or
(B)by the last day of the third year following the year in which principal photography ended.
(b)The fee provided for in subsection (1) must be paid with each submission of production expenditures and compensation paid filed under subsection (2)(a).
(c)The information submitted by the production company must include:
(i)the certification number of the state-certified production, as provided for in 15-31-1004(4);
(ii)a description of the qualified production activities and the production expenditures, including information that demonstrates a base investment of $350,000 or more or, if 15-31-1004(5) applies, a base investment of $50,000 or more; and
(iii)if compensation is included in the production expenditures, a detailed listing of employee names, social security numbers, Montana wages, state of residence, and whether the employee is an enrolled student.
(3)(a) The department of revenue shall review the costs submitted pursuant to subsection (2) and provide to the department of commerce the amount of the media production tax credit calculated pursuant to 15-31-1007 that may be claimed or transferred and the federal tax identification number of the production company.
(b)(i) Except as provided in subsection (3)(b)(ii), the department of revenue shall approve the media production tax credit if the state-certified production’s base investment is $350,000 or more.
(ii)The department of revenue shall approve the credit for a commercial, music video, production for website creation, video game, interactive entertainment, or experimental or low-budget project certified by the department of commerce pursuant to 15-31-1004(5) if the production’s base investment is $50,000 or more.
(c)A credit may be approved as provided in this subsection (3) only if principal photography began within 1 year of the date the department of commerce certified the production pursuant to 15-31-1004.
(4)A postproduction company wishing to claim the tax credit for qualified postproduction wages provided for in 15-31-1009 shall submit to the department of revenue a detailed listing of employee names, social security numbers, and Montana wages by the last day of the third year following the year the postproduction company paid the qualified postproduction wages.
(5)The identity and social security number or federal tax identification number of the employees for which compensation information is submitted pursuant to this section are subject to the provisions of 15-30-2618 and 15-31-511.
(6)The fee provided for in subsection (1) must be deposited in the state special revenue fund. The fee is statutorily appropriated, as provided in 17-7-502, to the department of revenue to administer the provisions of 15-31-1007 through 15-31-1009.