Montana Form Iufc - Infrastructure User Fee Credit

Form IUFC General Information

provide the partnership’s or S corporation’s name and

Federal Employer Identification Number.

Who can claim this credit?

If you received this credit from more than one partnership

A business that is created or expanded as the result of

and/or S corporation, you will need to complete a Form

a loan made by the Montana Board of Investments to

IUFC for each entity. For example, if you are a partner in

enhance economic development and create jobs in the

one partnership and a shareholder in two S corporations

basic sector of the economy may claim this credit for the

who all qualified for this credit, you would need to complete

fees it pays attributable to the use of the infrastructure.

three forms.

If my business paying the user fees is a partnership,

Part II. Credit Computation

an S corporation, or a limited liability company taxed

Complete a column for each entity that has a Montana

as a partnership or S corporation, are my partners,

infrastructure loan repayment agreement with the Montana

members or shareholders entitled to the infrastructure

Board of Investments. Include a copy of the letter from the

user fee credit?

Montana Board of Investments showing the interest and

As a partnership, an S corporation, or a limited liability

principal paid. The amounts provided in the letter are based

company taxed as an S corporation or partnership,

on a calendar year. If you are a fiscal filer, prorate the credit

your partners, shareholders or members are entitled to

based on the number of months.

apply their portion of the credit against their income tax

Line 1 – Enter the name of each entity paying fees

or corporation license tax liability. The amount of each

attributable to the use of an infrastructure.

partner, member or shareholder’s credit is based on the

portion of the entity’s income or loss the partner, member or

Line 2 – Enter the federal employer identification number

shareholder reports for Montana tax purposes.

(FEIN) of each entity.

For example, if your business is an S corporation with four

Line 3 – Your current year credit is the total of the interest

shareholders who each have the same number of shares

and principal paid as reported in the letter from the

of stock, each shareholder would be entitled to 25% of the

Montana Board of Investments.

total credit.

Line 4 – Enter your separate entity credit carryforward

Partners, members or shareholders claiming their portion

and/or carryback. Your credit for prior years needs to be

of the pass-through entity’s credit should include with

calculated in the same manner as the current year. Include

their individual income or corporation license tax return a

a detailed schedule of your separate entity credit carryover.

completed Form IUFC.

Line 5 – Add lines 3 and 4; enter the result on this line. This

Can I carry any excess infrastructure user fee credit

is your total available infrastructure user fee credit.

back to a prior year or forward to a subsequent year?

Partnership and S corporation: The entity reports the

This credit may be carried back for three tax years or

information from line 5 to the partner or shareholder on

carried forward for seven tax years. The current year credit

Montana Schedule K-1. Stop here. You do not need to

must be applied first before applying any credit carryover.

complete lines 6, 7, or 8.

What information do I have to include with my return

Line 6 – Enter your Montana tax liability.

when I claim this credit?

Individual: This amount can be found on line 53 of the

When you claim this credit, include a copy of the letter from

Montana Form 2.

the Montana Board of Investments showing the current

C corporation: This amount can be found on page 3, line

year’s interest and principal paid. You also need to include

10 of the Montana Form CLT-4. If you are filing a combined

a detailed schedule of your separate entity infrastructure

return, and have more than one entity with activity in

user fee credit carryforward and/or carryback, if applicable.

Montana, enter line 6h of the Schedule K-Combined for this

What limitations apply to this credit?

entity.

The credit is limited in the current tax year to the taxpayer’s

Line 7 – Enter the lesser of line 5 or line 6. This is your

current year tax liability. In addition, the total amount of the

allowable separate entity credit. The current year credit

tax credit claimed may not exceed the amount of the loan.

must be applied first before applying any credit carryover.

Instructions

Line 8 – Add line 7, columns A through C, and enter the

result here. This is your allowable infrastructure user

Part I. Partners in a Partnership or Shareholders of an

fee credit. Enter this amount on Form 2, Schedule V for

S Corporation

individuals or Form CLT-4, Schedule C for C corporations.

If you received this credit from a partnership or S

Administrative Rules of Montana: 42.4.3002 through

corporation, you will need to fill out this part in its entirety.

42.4.3004

Your portion of the credit can be obtained from the Montana

Schedule K-1 that you received from the entity. In addition

Questions? Call us toll free at (866) 859-2254 (in Helena,

to reporting your portion of the credit, you will need to

444-6900).

Montana Form Iufc - Infrastructure User Fee Credit - 2012 Page 2

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