Administrative Rules of Montana
Department 42 - REVENUE
Chapter 42.23 - CORPORATION LICENSE TAX - GENERAL
Subchapter 42.23.1 - General Provisions
Rule 42.23.112 - RESEARCH AND DEVELOPMENT - APPLICATION AND ELIGIBILITY

(1) The department will certify the eligibility of firms for both the five-year corporation tax exemption and the class five research and development property classification.

(2) A firm may apply for either or both the corporation tax or property tax benefit. Claiming one of the benefits is not a prerequisite to claiming the other.

(3) To qualify for the class five property classification, a firm must apply annually to the department on or before January 1 of the year for which the classification is desired.

(4) To obtain the corporate income tax exemption, the firm must file an annual application with the department before the end of the first calendar quarter during which the firm does business in Montana. The initial application must be filed before the end of the first complete calendar quarter during which the corporation is engaged in business in Montana. For example, if a corporation began operating in Montana on September 15, that corporation would have until December 31 of that year to file for the exemption.

(5) Taxpayers will be required to submit information determined to be necessary by the department for evaluating the eligibility of firms for the research and development tax benefits.