90-10-303. Contingent, deferred tax credits. (1) (a) A total of $60 million of tax credits is available to certificate holders. The amount of tax credits certified for use may not exceed $25 million prior to January 1, 2009. No more than $12 million of tax credits may be claimed in a year.
     (b) In calculating the $12 million of tax credits that may be claimed in a year, the board shall notify the department of revenue or the state auditor, as applicable, of all tax certificates presented for redemption in each year and the amount of taxes against which the board has determined the tax credits are to be applied.
     (c) Tax credits must be allocated on a first-come, first-serve basis.
     (d) Expired tax credits do not count against the aggregate calculated in subsection (1)(b).
     (2) A tax credit may not be claimed prior to July 1, 2010, or after July 1, 2031.
     (3) Tax credits may be claimed or redeemed by a certificate holder only in accordance with conditions set forth in the certificate issued by the board.
     (4) The certificate must state the amount of the tax credit and the tax year in which the tax credit may first be claimed or redeemed as provided in 90-10-304 and this section.
     (5) Subject to subsection (2), a tax credit may be carried forward by the certificate holder for up to 12 years.
     (6) (a) The amount of tax credits certified for use by investors in the Montana equity fund is limited to an amount that offsets a shortfall in the scheduled returns of invested capital and returns on invested capital at rates of return in the contract between the designated investor group and the investor as approved by the board.
     (b) The certificate must contain the conditions for claiming a tax credit, including:
     (i) the scheduled rate of return for the certificate holder and all predecessors of the certificate holder;
     (ii) the formula by which a shortfall in returns of invested principal and interest is to be calculated;
     (iii) the upper limit of tax credits available under the certificate; and
     (iv) the dates by which the tax credits may be first redeemed and last redeemed.
     (7) A certificate holder of a certificate may transfer the certificate and the associated tax credits.
     (8) The tax credit of an investor group that is a partnership, a limited liability company taxed as a partnership, or an S. corporation may be claimed by the partner, member, or shareholder. The tax credit of an investor group that is an estate or trust may be claimed by the beneficiary. The amount of credit claimed by a partner, member, shareholder, or beneficiary must be the partner's, member's, shareholder's, or beneficiary's pro rata share of the earnings of the partnership, limited liability company, S. corporation, trust, or estate.
     (9) The certificate must permit a person claiming an interest in a tax credit to record that interest.
     (10) (a) A certificate is binding on the board and the department of revenue once capital is provided to the Montana equity fund.
     (b) A certificate may not be modified, rescinded, or terminated, except that redemption as provided in 90-10-304 terminates a certificate.

     History: En. Sec. 8, Ch. 537, L. 2005.