42.4.401    DEFINITIONS

The following definitions apply to this subchapter:

(1) "Another state" or "other state" means a state of the United States other than Montana, the District of Columbia, the Commonwealth of Puerto Rico, any other territory or possession of the United States, and a foreign country.

(2) "Foreign income tax" means the income tax paid to another state for which the credit described in ARM 42.4.402 is claimed.

(3) "Income tax" means a tax measured by and imposed on net income and, in the case of an S corporation and partnership, includes an excise tax or franchise tax that is imposed on, and measured by, the net income of the S corporation or partnership. The term does not include any other taxes such as, but not limited to, franchise or license taxes or fees not measured by net income, gross receipts taxes, gross sales taxes, capital stock taxes, or property, transaction, sales, or consumption taxes. The term does not include penalty or interest paid in connection with an income tax.

(4) "Taxable foreign income" means the income from the other state that is included in the taxpayer's Montana adjusted gross income.

(5) "Total foreign income" means the income of the other state upon which the foreign income tax was computed.

History: 15-30-2620, MCA; IMP, 15-30-2302, MCA; NEW, 2004 MAR p. 1965, Eff. 8/20/04; AMD, 2010 MAR p. 1211, Eff. 5/14/10.