(1) The credit is allowed to owners of the property who make qualified rehabilitation expenditures.

(2) A lessee that makes its own qualified rehabilitation expenditures to a certified historical building for which it is allowed a federal rehabilitation credit in its own right under IRC 47(c)(2)(B)(vi) when the initial lease term is longer than the building's IRC 168(c) recovery period is allowed to claim the Montana rehabilitation credits based on its own investment.

(3) A lessor who elects under U.S. Treasury regulation 26 C.F.R. 1.48-4(f) and (g) to pass the federal rehabilitation credit to a lessee may not claim the Montana credit and, correspondingly, a lessee to whom the federal rehabilitation credit is transferred is entitled to claim the Montana credit.

(4) A credit for the preservation of historic property jointly owned by more than one individual must be allocated between owners based on each owner's share of ownership in the property. Unless specified otherwise when the property is purchased, percentage of ownership will be considered equal to 100 percent divided by the number of owners.

(5) A credit for the preservation of historic property owned by an S corporation must be allocated to its shareholders based on their pro rata share of ownership in the corporation.

(6) A credit for the preservation of historic property owned by a partnership must be attributed to the partners in the same proportion used to report the partnership's income or loss for Montana income tax purposes.