Form Rdf-Ct - Application To Be Considered A Research And Development Firm Page 2
Download a blank fillable Form Rdf-Ct - Application To Be Considered A Research And Development Firm in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form Rdf-Ct - Application To Be Considered A Research And Development Firm with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2General Instructions for Form RDF-CT
Purpose of this form
and development firm’s taxable period for federal income
tax purposes.
The form serves two purposes. It is used by new
• Income which is unrelated to research and development
corporations formed to engage in business in Montana for
activities earned by a research and development firm is
the first time to apply for classification as a research and
not eligible for the five-year income exemption from the
development firm. It is also used annually by firms that
Montana corporation license tax. (ARM 42.23.116)
already have been classified as research and development
• For the purpose of calculating or otherwise determining
firms to identify their research and development property
the period for which a deduction, exclusion, exemption,
that qualifies for “class 5” classification for property tax
or credit may be taken, we will disregard a research
purposes.
and development firm’s first five taxable years of activity
in Montana and administer the deduction, exclusion,
Application Filing Requirements
exemption, or credit as if the corporation did not
• This application must be filed with us before the end of
exist during those taxable years. This treatment of a
the first calendar quarter of the taxable year that you
research and development firm extends to net operating
engage in business in Montana.
loss carryback and net operating loss carryforward
• When we receive your timely application,
provisions.
(15-31-103(2)(c), MCA), we will evaluate your
Property Tax Classification (15-6-135, MCA)
firm’s eligibility to be designated as a research and
development firm. If your firm qualifies, we will send you
• If you qualify as a research and development firm,
a letter confirming this designation.
all land and improvements and all personal property
• If you do not properly complete this form or file within
that you own that is actively devoted to research
the time allowed, you will automatically be disqualified
and development will be determined to be “class five
from being designated and treated as a research and
property” for purposes of property tax classification.
development firm.
• In order to qualify for the class five property
• The director of the Department of Revenue may grant
classification, you must file this form annually with the
department on or before January 1 of the year that
an extension of time for you to file an application for
treatment as a research and development firm if you
you desire the classification. Through our business
submit the extension in writing and the extension does
and income taxes division, we will certify the eligibility
of your class five research and development property
not extend beyond 30 days from the date the application
was required to be filed.
classification.
Mail to: Montana Department of Revenue
• ARM Section 42.23.115 states that in order for a firm to
qualify as a research and development firm, more than
Corporation Tax Unit
50% of the real and tangible personal property located
PO Box 7149
Helena, MT 59604-7149
in Montana and more than 50% of its Montana payroll
must be directly related to research and development
Questions? Please call us toll free at (866) 859-2254 (in
activities.
Helena, 444-6900).
• A corporation which is created through the
reorganization of a corporation currently operating in
Montana is not eligible for the research and development
tax benefits if the newly created research and
development subsidiary is essentially continuing current
and past activities of the parent in Montana. If the newly
created corporation is carrying on new research and
development activities separate and distinct from the
operations of the parent, the corporation will be eligible
for tax benefits. (ARM 42.23.114)
Exemption from License and Income Tax
(15-31-103, MCA)
• An eligible research and development firm that is
organized to engage in business in the state of Montana
for the first time is not subject to any of the taxes
imposed on net income earned from research and
development activities during its first five taxable years of
activity in Montana. The “taxable year” means a research
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial