Fillable Form Fpc - Film Production Credit

Form FPC General Instructions

As a pass-through entity, how do I complete Form

FPC and report the credit information to the owners

What is a “state-certiﬁ ed production?”

of my pass-through entity?

A state certiﬁ ed production is a production that is

An S corporation, partnership or limited liability company

certiﬁ ed by the Montana Department of Commerce

completes Form FPC, along with Schedules I and II,

and is produced by a production company that has a

but does not make the Employment Production Credit

national or regional distribution plan that includes, but is

Election. The election is made by each of the owners of

not limited to, a major theatrical exhibition, ﬁ lm festival,

your pass-through entity for their portion of the credit.

television network, cable television programming,

Attach Form FPC to your Montana information return,

magazine advertising, or video or internet distribution.

Form CLT-4S or PR-1.

How do I certify my production and obtain a Film

On the Montana Schedule K-1, provide your owners’

Certiﬁ cation Number?

shares of the credit, compensation and expenses

relating to these credits. The amount of ﬁ lm production

To obtain certiﬁ cation, you have to ﬁ le an application

credits, compensation and qualiﬁ ed expenditures that

with the Montana Department of Commerce. You can

request an application form by contacting the Montana

are required to be added back to income are allocated

Department of Commerce Film Ofﬁ ce at (406) 841-2876

to each of your owners based on the same proportion

that is used to report their income or loss for state tax

(in Montana) or 800-553-4563 (out-of-state), or e-mail

them at montanaﬁ lm@mt.gov. Once the Montana Film

purposes.

Ofﬁ ce reviews and approves your application, they will

How do I complete Form FPC and obtain the credits

assign a certiﬁ cation number to your production and

if I am an owner in a pass-through entity?

notify the Montana Department of Revenue.

As a shareholder of an S corporation, a partner of a

How do I determine the amount of compensation

partnership, or a member of a limited liability company

I paid to a Montana resident when calculating my

that has qualiﬁ ed for the ﬁ lm production credit, you are

employment production credit?

entitled to apply the portion of the credit that has been

passed through to you against your tax liability. Your

Include the salaries, wages and any other compensation

portion of the credit can be obtained from the Montana

such as related taxable beneﬁ ts that are reported as

social security wages or taxable beneﬁ ts on federal

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

Form W-2. Report the eligible compensation expenses

addition to reporting your portion of the credit, you will

need to provide the partnership’s or C corporation’s

that were paid to Montana residents during your

production. Do not include amounts paid to independent

name and Federal Employer Identiﬁ cation Number.

contractors for contract labor that are reportable on

You are required to complete your personal information

federal Form 1099-MISC.

on the top of Form FPC, page 1. Report the amount of

your credit and make the election to have any unused

How do I determine the amount of my qualiﬁ ed

employment production credit refunded or to have it

expenditures when calculating my qualiﬁ ed

carried forward and applied against your tax liabilities

expenditures credit?

in the next succeeding four years. If you are a partner

The expenditures that qualify for this credit are those

or shareholder in more than one partnership or S

made by you in Montana that are directly related to

corporation, you will need to complete a separate Form

your state-certiﬁ ed production. This includes, but may

FPC for each entity you are receiving the credit from.

not be limited to, expenses for lodging, restaurant and

food expenses, location fees, lumber and construction

Film Production Credit

materials, rental of production equipment and vehicles,

A production company will ﬁ rst need to complete Form

and supplies and materials that will be used in the

FPC, Schedules I and II, before it can calculate the ﬁ lm

production.

production credit.

The employment production credit is based on the

Schedule I Employment Production Credit

amount of compensation that I paid to Montana

residents. How do I determine if the individual I

Column E, Line 1 – Enter on Column E, line 1, the total

employ is a Montana resident?

amount of qualiﬁ ed compensation previously submitted,

and include a copy of your previously submitted Form

During the hiring process, the production company is

FPC-PP with the application.

required to obtain a declaration of residency form, Form

FPC-RD, for each Montana resident. The form, along

Column A – Enter the names alphabetically by last

with the supporting evidence listed, must be retained in

name of all resident cast and crew members who

your company records. See Form FPC-RD for detailed

were employed by the production company during the

information deﬁ ning a Montana resident.

production. Do not include in this list any compensation

that you have elected to treat as qualiﬁ ed expenditures.

Form Fpc - Film Production Credit - 2013 Page 4

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