Form Mine-Cred Draft - Mineral And Coal Exploration Incentive Credit - 2011 Page 3
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4Information about this form (MINE-CRED)
information tax return and provide you with your share of
the credit.
Definitions
Your share of the credit that is passed through to you by
“Certified expenditures” means those costs incurred for
your S corporation or partnership is based on the same
activities in direct support of exploration activity conducted
proportion used by you to report your income and loss for
at a specific exploration site for the purpose of determining
Montana tax purposes.
the existence, location, extent, or quality of a mineral or
When your S corporation or partnership passes through
coal deposit.
a credit, remember to provide the entity’s name, federal
“Geochemical methods” means geochemical data
employer identification number and your percentage of
gathering methods, including the collection of soil, rock,
ownership in the space provided on the Form MINE-CRED.
water, air, vegetation, and similar samples and their
Can I carry any excess mineral and coal exploration
chemical analyses.
incentive credit back to a prior year or forward to a
“Geophysical methods” means all geophysical data
subsequent year?
gathering methods used in mineral or coal exploration,
This credit must be applied within 15 years after taking the
including seismic, gravity, magnetic, radiometric, radar, and
approved credit.
electromagnetic and other remote sensing measurements.
What information do I have to include with my return
“Mineral” means those substances defined as minerals by
when I claim this credit?
Section 82-4-303, Montana Code Annotated (MCA) and
coal defined by Section 82-1-111, MCA.
When you claim this credit, attach copies of the Montana
Forms MINE-CRED and MINE-CERT (showing certified
“Mining operation” includes all operating and nonoperating
expenditures) to your individual income tax or corporation
activities related to a mineral deposit interest and may be
license tax return. A separate Form MINE-CRED needs
composed of one or more mining properties.
to be completed for each entity with a distinct mining
“Person” means a sole proprietorship, corporation,
operation.
partnership, small business corporation as defined in
When filing your Montana partnership return, Form PR-1, or
Section 15-30-3301, MCA, or limited liability company as
your Montana S corporation return, Montana Form CLT-4S,
defined in Section 35-8-102, MCA.
report your Mineral and Coal Exploration Incentive Credit
Who can claim this credit?
on Schedule II. Include with your tax return the completed
Forms MINE-CRED and MINE-CERT (showing certified
A person may claim this credit for the certified expenditures
expenditures) and a supplemental schedule identifying
of the following exploration activities that are performed
each partner or shareholder and their pro-rata share of the
on land in the state for the purpose of determining the
credit.
existence, location, extent, or quality of a mineral or coal
deposit, regardless of land ownership:
What limitations apply to this credit?
•
Surveying by geophysical or geochemical methods;
The expenditures are limited to 50% of the certified
expenditures for each year and may not exceed a total of
•
Drilling exploration holes;
$20 million of all exploration activities. The credit is limited
•
Conducting underground exploration;
to 50% of the person’s current year tax liability.
•
Surface trenching and bulk sampling; or
Instructions
•
Performing other exploratory work, including aerial
A separate Form MINE-CRED needs to be completed for
photographs, geological and geophysical logging,
each entity with a distinct mining operation.
sample analysis, and metallurgical testing.
Part I
A person must apply for the certification of expenditures
incurred by submitting the Montana Form MINE-CERT
All entities should complete Parts I and II.
to the department within 60 days after the close of the
Mineral and Coal Exploration Incentive Credit
calendar year. The department will make a determination
Calculation
of the certification of the expenditures by September 30.
Please see the Form MINE-CERT and its instructions for
Each column must be completed for each distinct mining
more information on the application process. This form is
operation. If necessary, use additional pages.
available on our website at revenue.mt.gov.
Line 1 – Enter the name of each distinct mining operation.
How do I claim this credit when I am a partner or
Line 2 – Enter the amount of expenditures certified by the
shareholder in a partnership or S corporation?
department from Form MINE-CERT and attach a copy of
When the expenditures of a partnership or S corporation
the Form MINE-CERT.
are certified, the entity will report the credit on its
Line 3 – Multiple line 2 by 50% (0.50). This is your Mineral
and Coal Exploration Incentive Credit for the current year.
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