(1) The charitable contribution deduction provided for in 15-31-114 , MCA, cannot exceed 10% of the Montana taxable income or 10% of the income subject to apportionment for multistate corporations calculated without regard to the charitable contribution deduction or any net operating loss carryback to that year.

(2) This limitation can create a difference in the amount of the deduction claimed for Montana and federal income tax purposes. When a difference exists, the taxpayer is required to include a reconciliation between the Montana deduction and the federal deduction. If the federal deduction includes any carryover of contributions previously made, a schedule must be included showing the amount and the year of such contributions. The Montana deduction must be adjusted accordingly for any contributions previously deducted for state purposes and not deducted in prior years on the federal return.