42.4.3202    CREDIT FOR INCREASING RESEARCH ACTIVITIES

(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.

History: 15-30-2620, 15-31-150, 15-31-501, MCA; IMP, 15-30-2358, 15-31-150, MCA; NEW, 2005 MAR p. 164, Eff. 1/28/05; AMD, 2010 MAR p. 1209, Eff. 5/14/10; AMD, 2013 MAR p. 216, Eff. 2/15/13.