About Us
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BUYERS
PRODUCTIONS
BUYERS
Are you interested in saving on your Montana State Income taxes? We make it easy.
MEDIA TAX CREDITS
HOW IT WORKS:
History MEDIA Tax Credit:
In 2019, Montana State Legislatures passed the MEDIA Tax Credit, which incentivizes film production in Montana. It offers a 20% transferable income tax credit on production expenditures in the state with additional amounts that can increase the credit up to 35% of the production company’s base investment in the tax year. These productions are then issued a credit by the DOR that they can only sell to an individual, entity or business that pays a Montana State tax liability. There are $12MM/year in tax credits available for a 5-year carry forward for a purchaser of the credit amount.
How it works?
- A production gets approved by the Department of Revenue (DOR) for their local film spend and they get an amount of a MEDIA Credit they can sell.
- The production has to find an individual, entity, or business that pays a Montana State tax liability.
- The production and the buyer sign a buy-sell agreement from no less than .85/dollar for the credit amount. Most credits go from 92-94 cents/dollar. You can save then 6-10% on your MT State taxes.
- This purchase agreement and a transfer form are signed by both parties and sent to the DOR. The production pays 2% to the DOR to verify the forms. Then the DOR approves the forms and sends via email and mail a copy to each party a Media Transfer Form with the Unique Credit Registration Number (UCRN).
- Unique Credit Registration Number (UCRN) has a date of when the credit was verified and the tax years that the purchaser can use for the next 5 years. Below is a UCRN that will allow the purchaser to use their credit amount from tax year 2023 to 2028. Example Unique Credit Registration Number (UCRN):21-Prod-01-045-2023-2028
- The purchaser then sends the funds to the production or tax credit company and can use the Unique Credit Registration Number (UCRN) on their tax form instead of their tax payment. They can use the amount they purchased for the next 5 years and quarterly payments.
