Montana Code 15-31-1008. Transfer of tax credit for media production — transfer fee
15-31-1008. Transfer of tax credit for media production — transfer fee. (1) A tax credit for a state-certified production approved as provided in 15-31-1004 and 15-31-1005 and calculated pursuant to 15-31-1007 but not claimed by the production company may be transferred in whole or in part by the production company to another Montana taxpayer as provided in this section.
Terms Used In Montana Code 15-31-1008
- 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
- Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
- 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
(2)A credit may be transferred only once each tax year. The transfer may involve one or more transferees.
(3)A transferee must acquire the credit for a minimum of 85% of its value.
(4)A transferred credit is subject to the carryforward period from the year in which the production company was eligible to claim the credit.
(5)A production company or taxpayer that transfers a tax credit shall submit to the department of revenue a written notification of the transfer of the tax credit within 30 days after the transfer. The notification must include the following information:
(a)the certification number of the state-certified production;
(b)the tax credit balance before and after the transfer;
(c)the tax identification number of the taxpayer to whom the credit was transferred;
(d)the amount of credit transferred; and
(e)any other information required by the department of revenue.
(6)The notification of the transfer of a tax credit must be accompanied by a fee equal to 2% of the value of the tax credit transferred. The transfer fee must be deposited in the general fund.
(7)A transferee has rights to claim the tax credit available to the production company or previous transferee only at the time of the transfer. If a production company or transferee did not have rights to claim the credit at the time of transfer, the department of revenue shall disallow the credit claimed by the taxpayer or recapture the credit. The transferee’s recourse is against the production company or previous transferee and not against the state of Montana.
(8)The department shall administer the transfer of credits pursuant to this section.