39-11-203. (Temporary) New jobs credit -- loan repayment. A grant made under 39-11-202 for program costs must be repaid by a new jobs credit, which must be calculated and paid as follows:
     (1) New jobs credit must be based on the gross wages paid for new jobs created.
     (2) Each employer receiving a grant under the program shall report the gross wages paid for each new job for which training grants under the program were received. Gross wages must be reported for the 12-month period following a grant award and for each subsequent 12-month period until the principal on the loan, issued under 39-11-204 and used to fund the grant award, is repaid.
     (3) The employer shall provide any additional information required by the department of revenue to calculate the new jobs credit.
     (4) The department of revenue shall calculate the income tax receipts to the state based on the gross wages paid by the employer. The department of revenue may use a state average effective income tax rate, by income bracket, to calculate income tax receipts to the state from the program.
     (5) The department of revenue shall transfer the amount of the new jobs credits from the general fund to the office of economic development, to be used for repayment of principal, interest, and administrative costs on loans issued under 39-11-204. The office of economic development shall account separately for each grant award and any new jobs credit associated with that grant. Funds transferred for a new jobs credit may be used only for repayment of principal, interest, and administrative costs for the loan that funded the grant with which the new jobs credit is associated and for the labor supply studies authorized in subsection (6). If funds transferred for a new jobs credit exceed the amount required for repayment of principal, interest, and administrative costs on the loan that funded the grant with which the new jobs credit is associated and the labor supply studies authorized in subsection (6), all remaining funds must be used for early repayment of principal on the loan associated with the new jobs credit. Transfers from the department of revenue for a new jobs credit must cease once the principal and interest on the loan used to fund the grant associated with that new jobs credit has been repaid.
     (6) The office of economic development shall, in each fiscal year, retain 5% of the total of all transfer payments from the department of revenue to the office of economic development, as provided for in subsection (5), that occur in that fiscal year. These funds must be used to assist the department of labor and industry in analyzing data and reporting on the available labor supply in Montana's rural, reservation, and urban labor markets.
     (7) The department of revenue may adopt rules necessary to implement this section, including but not limited to:
     (a) the development of application procedures and forms; and
     (b) requirements for submission of information necessary to process the tax credit. (Terminates June 30, 2007--sec. 10, Ch. 567, L. 2003.)

     History: En. Sec. 6, Ch. 567, L. 2003.