1. MONTANA
2008
Income Tax Booklet For Estates or Trusts
Dear Montana Taxpayer:
Your Montana Department of Revenue is committed to providing the best possible tax services
to the citizens and businesses of our great state. We promise to do the best we can
• to provide you with the most accurate and timely assistance to help you file your tax
returns, and
• to ensure that all citizens and businesses pay their fair share of Montana taxes—no more
and no less.
We thank you for filing and paying Montana taxes. By paying taxes, you support public services
that help make Montana a great place to live, work and conduct commerce. Inside this booklet
you’ll find charts that show how your tax dollars contribute to Montana’s quality of life through
education at all levels, modern infrastructure, public order, community health and safety, and
other important public services.
Finally, we continue to work for you. Please let us know how we are doing—so that we can do
an even better job for you—by completing the improvement survey attached to the instruction
booklet. For your convenience, it is addressed with postage paid. In addition, you may contact
us with any questions or requests by sending an e-mail message to DORFormsDesignTeam@
mt.gov or by calling us toll free at (866) 859-2254 (in Helena 444-6900).
Thank you for helping make our tax system work for all Montanans!
Best regards,
Dan Bucks, Director
Montana Department of Revenue
Important Numbers
Tax Questions and Assistance ......... toll free (866) 859-2254 (in Helena, 444-6900)
Forms Request ................................. toll free (866) 859-2254 (in Helena, 444-6900)
For the Hearing Impaired ................. (406) 444-2830
Fax.................................................... (406) 444-6642
119

2. Table of Contents Page
General:
Instructions 1-14
Forms included in this booklet:
FID-3 Montana Income Tax Return for Estates and Trusts Form pages 1-2
Schedule I Distribution to Beneficiaries Form page 3
Schedule II Nonresident Estate and Trust Tax Form page 4
Schedule III Montana Tax Credits Form page 5
Schedule IV Credit for an Income Tax Liability Paid to Another State or Country Form page 6
Schedule V Reporting of Special Transactions Form page 6
You may download the forms and instructions from mt.gov/revenue. To request paper forms and instructions, please call
us toll free at (866) 859-2254 (in Helena, 444-6900), e-mail us at dorforms@mt.gov or write us at Montana Department of
Revenue, PO Box 5805, Helena, Montana 59604-5805.
Fiscal Year Filers - Please Note:
These are your Montana Income Tax Return for Estate and Trust forms for the tax year
beginning in 2008. Retain this booklet for your 2008 filing purposes.
Your Tax Dollars at Work
Where Your Income Tax Dollar Goes
The table to the right shows where your
individual and corporate income tax dollars Education .................................................49%
(about 13% of total state and local revenues) Health and Human Services ....................20%
were spent in 2007. For the charts below, the Public Safety and Corrections ..................11%
left chart shows the sources of revenue for both Transfers to Local Governments ................6%
state and local governments in Montana for General Government Operations ...............9%
2006, the most recent year for which totals are
Other ..........................................................5%
compiled. The right chart shows state and local
Total Spending .......................................100%
spending.
What are Montana’s Public Revenues? Where Do Your Public Dollars Go?
Total Montana State and Local Total State and Local Spending in
Revenue, Fiscal Year Ending 2006 Montana, Fiscal Year Ending 2006
22% - Public Schools
30% - Federal Revenue
21% - Health and
Human Services
15% - Property Taxes
13% - Higher Education
14% - Tuition and Other
Charges for Services
12% - Transportation
13% - Individual and Corporate
Income Taxes
12% - Administration,
11% - Interest Earnings Judiciary and Other
and Other
9% - Environment, Housing,
9% - Other Taxes Natural Resources, Parks
3% - Motor Fuel Taxes 8% - Public Safety
3% - Natural Resource Taxes
3% - Interest on Debt
2% - Utility and Liquor Sales

3. 2008 Montana Income Tax Form FID-3 Instructions Page 1
Please Note As Well…
What’s New for 2008
Interest on Unpaid Income Tax Liabilities. The current
Voluntary Check-Off Contribution for Montana Military
interest rate of 8% will continue to be in effect through
Family Relief Fund. Please consider helping Montana
December 31, 2009. Under Montana law, the daily accrual
military families by making a voluntary contribution to this
interest rate for all unpaid income taxes depends on the
fund as you file your tax return. The relief fund provides
rate set by the Internal Revenue Service and may fluctuate
grants that aid Montana families in defraying the costs
each year, but will not be less than 8%.
of food, housing, utilities, medical services and other
expenses when a wage earner has been called to active
General Information
military duty. As always, we encourage you to consider all
the available voluntary check-off programs included on Who Has to File Form FID-3?
page 2 of Form FID-3.
The fiduciary of a Montana estate or trust (guardian,
Montana Mineral Royalty Tax Withholding. Effective trustee, executor, administrator, receiver, conservator, or
January 1, 2008, royalty payments made to owners of any person acting in a position of trust or fiduciary capacity
Montana mineral rights are subject to state income tax for any other person or group of persons) has to file a
withholding if applicable thresholds are met. If the mineral Montana Income Tax Return for Estates and Trusts ( Form
rights are held by a partnership or S corporation and FID-3) if:
you have an ownership interest in that entity, enter the
• a resident trust or estate has Montana adjusted
amount reported to you as your share of the withholding.
total income of $2,140 or more,
Please see the instructions for line 50 on page 6 for more
information. • a nonresident trust or estate has Montana adjusted
total income of $2,140 or more.
Temporary Emergency Lodging Credit. For tax
years beginning on or after January 1, 2008, there is a A tax return is not required to be filed if the estate or trust is
refundable credit available for licensed establishments held for an educational, charitable or religious purpose.
that provide short-term emergency lodging under the
If an estate or trust is not required to file a federal tax
Temporary Emergency Lodging Program. The program
return, it is not required to file a Montana tax return. No
helps provide lodging for individuals or families who
distinction is made between living trusts (created by
have been displaced from their residence and have been
the grantor and funded during his or her lifetime) and
referred to the establishment by a charitable organization
testamentary trusts (becoming operative upon the death of
approved by the Montana Department of Public Health and
the grantor).
Human Services. The credit is equal to $30 for each day of
lodging provided by the establishment and is limited to five When you file Form FID-3, please attach a complete copy
nights’ lodging for each individual. See the instructions for of your federal Form 1041, including all federal Schedule
Schedule III, line 27, on page 13 for more information. K-1(s).
Extension of Time to File. The extension of time available Resident Estate or Trust
to file the Montana Form FID-3 is now five months instead
An estate is treated as a resident estate if the decedent
of six months. This change is based on Internal Revenue
was domiciled in Montana on the date of his or her death. If
Service regulations that reduced the extension of time to
the estate is other than an estate of a decedent, it is treated
file Form 1041, U.S. Income Tax Return for Estates and
as a resident estate if the person for whom the estate was
Trusts. This is effective for extension requests with respect
created is a Montana resident.
to tax returns due on or after January 1, 2009 and applies
to business entities that have a tax year ending on or after A trust is treated as a resident trust if three or more of the
September 30, 2008. This does not change the process for following occur in Montana:
requesting an extension of time to file.
• Domicile of the grantor
Economic Stimulus Act of 2008. This federal act
• Creation of the trust
provided a significant tax incentive for businesses to make
capital investments by adding a special 50% depreciation • Existence of trust property
allowance for qualifying purchases. This special “bonus
• Domicile of the trustee
depreciation” allowance is available to all businesses and
applies to most types of tangible personal property and • A Montana court is able to exercise primary
computer software acquired and placed in service after supervision over the administration of the trust
December 31, 2007, and before January 1, 2009. The
• Administration of the trust (one or more Montana
Montana tax provisions, with respect to the additional
residents have the authority to control all
50% special depreciation allowance for qualified property,
substantial decisions of the trust)
incorporate Section 167, IRC. Therefore, the special
depreciation allowance on federal Form 4562 is an
allowable deduction in determining the ordinary income or
loss for Montana income tax purposes.

4. Page 2 2008 Montana Income Tax Form FID-3 Instructions
Nonresident Estate or Trust for Montana income tax purposes. No separate election for
Montana purposes is required.
If the estate or trust does not qualify as a resident estate or
trust, it is treated as a nonresident trust. Special rules apply when computing the tax of an ESBT.
The portion of an ESBT that consists of stock of one or
With a nonresident estate or trust, your Montana tax liability
more S corporations, which is treated as a separate trust
is computed as if you were a resident estate or trust, and
for federal tax purposes, is combined with the remainder
then multiplied by the ratio of the estate’s or trust’s Montana
(non S corporation portion) in computing Montana adjusted
source income to total income.
total income or loss. The Montana tax liability is calculated
Please refer to the instructions on page 9, Schedule II, in the usual manner, using the regular tax table, on the
Nonresident Estate and Trust Tax. combined income of the ESBT.
What Forms Have to be Filed? If the ESBT consists entirely of stock in one or more S
corporations, complete Form FID-3 reporting the income,
The fiduciary is required to file Form FID-3, pages 1 and
losses and deductions of the ESBT as an S corporation
2; Schedule I, Distribution to Beneficiaries; Schedule II,
shareholder, and any gain or loss from the disposition of S
Nonresident Estate and Trust Tax, if applicable; Schedule
corporation stock as Montana adjusted total income. Attach
III, Montana Tax Credits, if applicable; Schedule IV,
to the estate or trust tax return the tax computation used in
Credit for an Income Tax Liability Paid to Another State or
reporting and paying your federal income tax liability.
Country, if applicable; and Schedule V, Reporting of Special
Transactions, if applicable. Grantor Type Trust
When to File If the grantor or another person is treated as the owner of
any portion of a trust by reason of the provisions of IRC
The Montana filing period is the same as your federal filing
Section 671 through 678, inclusive, of the Code, the trust
period. For a calendar year estate or trust, Form FID-3
is a grantor trust and its income is taxable to the grantor
is due on April 15 following the close of the taxable year.
or such other person, not to the trust. The fiduciaries of
For fiscal year estates and trusts, Form FID-3 is due on or
grantor trusts are required to file with the department
before the 15th day of the 4th month following the close of
informational tax returns and send copies to the grantors/
the tax year. If the due date falls on a weekend or a holiday,
owners who are required to report the income, deductions,
the tax return is due on the next business day.
and credits on their Montana individual income tax return.
Tax Year or Accounting Method Covered by Tax Return Complete Form FID-3 (reporting the income, losses, and
deductions of the grantor trust), check the box “Grantor
The 2008 Form FID-3 must be filed for the calendar year
Type Trust” and attach a copy of the federal Form 1041
2008, or the fiscal year beginning in 2008. If the tax return
information statement.
is for a fiscal year or a short tax year (less than 12 months),
enter the taxable year in the appropriate space at the top of Extension of Time to File
Form FID-3, page 1. NEW For fiduciary tax returns due on or after January 1,
The taxable year and accounting method for Montana must 2009, the automatic extension is now five months instead
be the same as the year and accounting method used for of six months. If you cannot file your tax return by the due
federal income tax purposes. If the estate or trust changes date, Montana allows the extension of time to file your tax
its federal taxable year or accounting method, it must return if you meet both of the following requirements:
change its Montana taxable year and accounting method
1. On or before the due date of your tax return, you
accordingly. A copy of the approval from the Internal
have applied with the Internal Revenue Service for
Revenue Service to change your accounting period or
an extension of time to file your federal income tax
method must accompany the first tax return that reflects the
return (federal extension Form 7004).
change.
2. The estate or trust has paid by estimated tax
Check the box “Final Return” on Form FID-3, page 1 if the
payments, withholding tax, or a combination of
estate or trust ceased to exist during the 2008 tax year.
estimated tax payments and withholding tax, 90% of
Where to File the estate’s or trust’s current year tax liability or 100%
of its previous year’s tax liability.
Please mail your fiduciary tax return to:
Montana Department of Revenue A valid federal extension is not considered a valid Montana
PO Box 8021 extension unless the estate or trust has met one of the
Helena MT 59604-8021 payment requirements identified in item number 2 on or
before the prescribed due date of the tax return.
Electing Small Business Trust (ESBT)
NEW Complete the Montana EXT-FID-08 Worksheet to
If the trustee makes the election under IRC Section 1361
determine if you have met the payment requirements.
for the trust to be an electing small business trust (ESBT)
The new EXT-FID-08 Worksheet replaces the EXT-08
for federal purposes, the trust will be treated as an ESBT
Worksheet for use by estates and trusts. If you are required
to make an extension payment, use the tax payment

5. 2008 Montana Income Tax Form FID-3 Instructions Page 3
coupon included on the Montana EXT-FID-08 Worksheet you, not the tax preparer, if any formal tax adjustments are
available at mt.gov/revenue. made.
You must check the extension indicator box on Form FID-3 Estimated Tax Payments
and attach a copy of your federal extension Form 7004 to
You are required to pay your income tax liability throughout
your completed Montana income tax return. Do not send
the year. A payment of estimated Montana income tax is
copies of the federal extension prior to filing your tax return.
generally required if the Montana income tax (after tax
Important: An extension of time to file is not an extension credits) minus Montana income tax withheld and mineral
to pay. If you do not pay the amount of tax due by the royalty tax withheld is $500 or more.
original due date, you will owe interest and penalties on any
Form ESW-FID, 2009 Montana Fiduciary Estimated
NEW
balance due.
Income Tax Worksheet, is now available at mt.gov/revenue
If you do not meet these requirements, your extension will to assist you in calculating your 2009 estimated income tax.
not be accepted and penalties will be assessed. The Form ESW-FID replaces Form ESW for use by estates
and trusts.
Amended Tax Return
Additional Information
If you discover that your income tax return was incorrect,
you have five years from the due date of the original tax If you are unable to pay your tax in full, file your tax return
return to file an amended Montana fiduciary tax return and by the due date and pay as much as you can with the tax
to correct any mistake on your previous tax return. return. If you need to establish a payment plan with us, call
toll free at (866) 859-2254 (in Helena, 444-6900) as soon
Use FID-3 to amend an original tax return. Check the box
as possible to discuss payment options and make payment
at the top of the form that this represents an amended
arrangements.
filing. Attach the applicable forms and statements that
will explain all of your adjustments in detail. Complete the Who Has to Sign the Tax Return?
entire Form FID-3 and its applicable schedules using the
Form FID-3 has to be signed and dated by the fiduciary
corrected amounts. If your amended tax return results in a
or officer representing the fiduciary. Form FID-3 is not
change to income or a change in the distribution of income
considered to be complete unless it is signed. Unsigned
or other information provided to any beneficiary, you will
forms may be returned to you to be completed. If your
also need to file an amended federal Schedule K-1 along
estate or trust has an outside accounting firm or an
with your amended Form FID-3. You will need to give a
individual prepare Form FID-3, the name, address and
copy of the amended tax return to each beneficiary.
telephone number of the tax preparer has to be included on
If you are amending your tax return to carry back a net your tax return.
operating loss, please check the “NOL” box found on the
Form FID-3 Instructions
upper left hand corner of Form FID-3.
These are instructions for lines not fully explained on the
If the Internal Revenue Service changes or makes
form. General instructions, which begin on page 1, also
corrections to your federal Form 1041 or if the estate or
apply to this form.
trust amends its federal tax return, you will need to amend
your Form FID-3 within 90 days of receiving the Internal Heading. File the 2008 tax return for calendar year 2008
Revenue Service’s notification of the corrections made to or a fiscal year that begins in 2008 and ends in 2009. For
your federal Form 1041 or filing your amended federal tax a fiscal year, provide the tax year in the space at the top of
return. the form.
Please Note: If you file an amended tax return that reflects Complete the exact name of the estate or trust from
an increased tax liability, you may have the late payment federal Form SS-4 (Application for Employer Identification
penalty waived. In order to receive the waiver, simply check Number) that you used to apply for your Federal Employer
the “Amended Return” box on the left-hand corner of the Identification Number (FEIN).
tax form and pay the tax and applicable interest in full. By
If a grantor type trust, write the name, identification
checking this box, you are requesting a waiver of the late
number and address of the grantor(s) or other owner(s) in
payment penalty.
parentheses after the name of the trust.
Tax Preparer Contact Box
Enter the FEIN that was assigned to the estate or trust
You can authorize the department to discuss your Form when you submitted your SS-4 and that corresponds to the
FID-3 tax return with your tax preparer by checking the name of the estate or trust. Do not use any other FEIN.
“Yes” box at the bottom of page 2 below the signature block
Check Boxes
on the tax return. If you check this box, we may contact
your tax preparer or you for additional information for this Residency status. Check the appropriate box that
year only. It does not authorize us to discuss any other describes the residency status of the estate or trust. See
tax return or tax issue with your preparer. We will inform resident and nonresident estate or trust definitions on
pages 1 and 2 of these instructions.

6. Page 4 2008 Montana Income Tax Form FID-3 Instructions
Type of entity. Check the appropriate box that describes Line 14 – Federal Net Operating Loss (NOL). Enter the
the entity for which you are filing the tax return. Your entity federal NOL carryforward if it is included in line 8 and if it is
type is the same as claimed on your federal tax return. different than the amount available for carryforward for the
Montana tax return.
Decedent’s Estate – taxable estate of a deceased person
Line 15 – Other Additions. To compute Montana taxable
Trust – simple, complex or qualified disability trust
income, certain items have to be added to income. You will
ESBT – for examples and additional information see the need to attach a detailed schedule, if necessary, to the tax
instructions on page 2. return. Examples are:
Grantor Trust – for examples and additional information see • State, local and foreign income taxes based on
the instructions on page 2. income or profits have to be added back to income.
Other – examples include bankruptcy estates and pooled • Compensation and expenditures used to compute
income funds the film production credit have to be included in
the income of the year that the expenditures were
Form PT-WH income tax. If you have income tax withheld
incurred.
from ownership in an S corporation, partnership or
disregarded entity, check the box on the front of Form FID- • If you were the owner of a business that received a
3 and see the instructions for line 51 on page 7. tax credit from the Insure Montana Small Business
Health Insurance program, you are not allowed a
Line Instructions
deduction for the premiums used to calculate the
Lines 1 through 8 – Enter all items of income or loss credit. Because the credit cannot exceed 50% of
reported on your federal income tax return. Attach copies of the premiums, multiply the amount of credit you are
applicable federal schedules and forms. claiming by two and enter the result on this line.
Line 2a – Ordinary Dividend Income. Enter total amount Line 16 – Total Additions. Add lines 10 through 15 and
reported on line 2a of federal Form 1041. Montana taxes enter the result on this line.
dividends as ordinary income and does not recognize the
Montana Subtractions from Federal Taxable Income
federal qualified dividend tax rate.
Line 17 – Interest from U.S. obligations. Enter the
Line 9 – Total Federal Income. Add lines 1 through 8. This
following on this line if included in the amount on line 1:
is your federal total income and must match your federal
total income reported on federal Form 1041. If you are an • Interest income from U.S. obligations. Common
ESBT, see page 2 of these instructions. sources of interest income that may be entered
on this line include U.S. Series E, EE, F, G, and H
Montana Additions to Federal Taxable Income
savings bonds, U.S. Treasury bills and notes, and
Line 10 – Interest and Mutual Fund Dividends from securities issued by the Banks for Cooperatives,
Other States’ State, County or Municipal Bonds. Enter Commodity Credit Corporation, Federal Deposit
the interest income from state and local government Insurance Corporation, Federal Farm Credit
obligations, except for Montana and its political System, Federal Home Loan Banks, and Student
subdivisions, that is exempt from federal income tax and Loan Marketing Association.
the portion of dividends received from a mutual fund that
• Interest income from other securities that is
is attributable to the fund’s investment in the same kinds of
specifically exempted from state income tax by
obligations. Interest and dividends from Montana bonds are
federal statute.
not taxable.
• The portion of dividend income from a mutual fund
Line 11 – Dividends Not Included in Federal Total
attributable to the fund’s investment in the same
Income. Enter the amount of the dividends that you
kinds of securities listed above. Refer to federal
received as Montana source income that are not already
Form 1099-DIV to determine what percentage of
included in your total federal income. Do not include your
dividends qualifies for this exemption.
qualified dividends reported on Form FID-3, line 2b since
these dividends are already in the total of your ordinary Obligations that are guaranteed by the United States
dividends reported on Form FID-3, line 2a. government are not tax exempt. Interest or mutual
fund dividends attributable to Government National
Line 12 – Taxable Federal Refund. If you claimed a
Mortgage Association (Ginnie Mae) bonds, Federal
federal tax deduction, either by withholding or by payment
National Mortgage Association (Fannie Mae) bonds, or
of an estimated tax in a prior year, any refund of that tax is
Federal Home Loan Mortgage Corporation (Freddie Mac)
income in the year it is received.
securities, cannot be subtracted.
Line 13 – Other Recoveries. If you claimed a deduction
Line 18 – State Tax Refunds. If a state tax refund is
in a prior year that reduced the Montana taxable income
included on line 8, deduct it here.
and it was subsequently reimbursed, please show that
reimbursement here.

7. 2008 Montana Income Tax Form FID-3 Instructions Page 5
Line 19 – Other Recoveries. If a recovery was shown as Line 22 – Other Subtractions. Please specify. Attach
income on line 8, but the original deduction did not reduce information if necessary.
Montana taxable income, deduct it here. Line 23 – Total Subtractions. Add lines 17 through 22 and
enter the result on this line.
Line 20 – Partial Pension and Annuity Exemption. If
taxable retirement income is included on line 8, you may Line 24 – Total Montana Income. Add lines 9 and 16, then
be able to exempt up to $3,600 of taxable pension and subtract line 23 and enter the result here.
annuity income. Qualifying pension and annuity income is
Deductions and Exemption
reported on federal Form 1099-R, with a distribution code
7. Premature distributions and early withdrawals of your Line 25 – Interest. Enter the amount from line 10 of federal
retirement income do not qualify for the retirement income Form 1041. Check the box if federal Form 4952 is attached.
exclusion. Early distributions which required payment
Line 26 – Federal Income Tax. Enter 100% of the federal
of the federal 10% additional tax do not qualify for this
income tax paid or accrued within the tax year. As an estate
exemption. Also, if you have received a disability pension,
or trust, the federal income tax deduction is not limited to
which is identified as a distribution code 3 on your federal
the lesser of $5,000 or the amount of federal income tax
Form 1099-R, you should use Montana Form DS-1, 2008
paid or accrued. Do not include state taxes paid.
Disability Income Exemption, to determine your deduction
instead of the retirement income exclusion. Line 27 – Other Taxes. Please specify.
Line 28 – Fiduciary Fees. Enter the amount from line 12 of
Tier I and Tier II Railroad Retirement benefits received from
federal Form 1041.
the Railroad Retirement Board are exempt from Montana
tax. Enter the full amount of Tier II annuity or pension Line 29 – Charitable Deduction. Enter the amount from
benefits reported on line 8 as a reduction to income on line 13 of federal Form 1041.
line 20. To calculate your pension and annuity income
Line 30 – Attorney, Accountant and Tax Return
exclusion, use the worksheet on this page.
Preparer Fees. Enter the amount from line 14 of federal
Partial Pension and Annuity Income Exemption Worksheet Form 1041.
1. Enter the federal total income from line 9
Line 31 – Other Deductions Not Subject to the 2%
here .......................................................... 1.
Floor. Please attach a schedule if applicable.
2. Phase-out limitation. ................................. 2. $30,000
Line 32 – Allowable Miscellaneous Itemized Deductions
If line 1 is smaller than line 2, enter the
Subject to the 2% Floor. Please attach a schedule if
smaller of the pension and annuity income
applicable.
or $3,600 on line 20. Stop here; do not
complete the remainder of this worksheet.
Line 33 – Total Deductions. Add lines 25 through 32 and
3. If line 1 is larger than line 2, subtract line 2 enter here. These are your allowable deductions before
from line 1 and enter the result here......... 3.
distributions and the exemption.
4. Enter the smaller of the pension and
Line 34 – Adjusted Total Income (or Loss). Subtract line
annuity income or $3,600. ........................ 4.
33 from line 24 and enter the result on this line.
5. Double the amount on line 3 and enter the
result here................................................. 5. Line 35 – Income Distribution Deduction. Enter the
amount of the deduction for distributions to beneficiaries.
6. Pension and annuity exclusion. Subtract
line 5 from line 4. If the result is zero or Attach a schedule showing the computation if different from
negative, there is no exclusion. If the the federal deduction.
number is positive, enter the result here
If the estate or trust was required to distribute income
and exclude this amount on Form FID-3,
currently or if it paid, credited, or was required to distribute
line 20. This is your partial pension and
annuity exemption. ................................... 6. any other amounts to beneficiaries during the tax year,
complete Schedule I for all beneficiaries who received an
Line 21 – Montana Net Operating Loss. Use Form
income distribution.
NOL for calculating your net operating loss for tax years
beginning after December 31, 1998. You must carry back Line 36 – Exemption. Each estate and trust is allowed one
the entire amount of your 2008 net operating loss to the two exemption of $2,140.
preceding tax years before the net operating loss unless
Line 37 – Total Income Distribution Deduction. Add lines
you have timely elected to forego your carryback and elect
35 and 36; enter the result here.
to carry forward your net operating loss. Your election to
forego the carryback must be made by the due date of your Line 38 – Taxable Income. Subtract the amount on line 37
tax return and, once it is made, it is irrevocable. from the amount on line 34. This is your Montana taxable
Use Form NOL-Pre 99 for calculating your net operating income.
losses for tax years beginning prior to January 1, 1999.
Line 39 – Enter the taxable income amount from line 38.
Attach your completed NOL Worksheet to your tax return.

8. Page 6 2008 Montana Income Tax Form FID-3 Instructions
Line 40 – Tax Liability. If line 39 is zero or less, enter zero. Line 44 – Total Tax. If the estate or trust is a resident,
add lines 42 and 43; enter the result on this line. If it is a
For resident estates and trusts, use the tax table below to
nonresident, add lines 42a and 43; enter the result on this
compute your tax liability.
line.
2008 Montana Fiduciary Income Tax Table Line 45 – Total Nonrefundable Credits. Enter the
If Your Taxable Multiply amount from Schedule III, line 23, but do not enter an
But Not And This Is
Income Is Your Taxable
amount larger than the amount on line 44. This is your
More Than Subtract Your Tax
More Than Income By
total nonrefundable credits. Please attach the applicable
$0 $2,600 1% (0.010) $0
information if required.
$2,600 $4,600 2% (0.020) $26
Line 46 – Tax Less Nonrefundable Credits. Subtract line
$4,600 $7,000 3% (0.030) $72
45 from line 44. If zero or less, enter zero.
$7,000 $9,500 4% (0.040) $142
$9,500 $12,200 5% (0.050) $237
Recapture Taxes
$12,200 $15,600 6% (0.060) $359
Some deductions and tax credits have provisions requiring
More than $15,600 6.9% (0.069) $499
a recapture of the tax benefit you received in an earlier year
For Example: Taxable Income $6,800 X 3% (0.030) = $204; $204
if you do not meet certain requirements in subsequent tax
Minus $72 = $132 Tax
years.
For nonresident estates and trusts, use Form FID-3,
Line 47 – Endowment Credit Recapture Tax. If you
Schedule II, page 4 to complete the calculation of the tax
previously claimed an endowment credit and you have also
liability.
taken a charitable deduction for a gift that you contributed
Line 41 – Capital Gains Tax Credit. Please see 15-30- to a qualified endowment and you now have received
183, MCA. You can claim a capital gains credit against your the gift back, you are required to recapture the previous
Montana income tax of up to 2% of the net capital gains. credit. The credit will need to be recaptured to the extent
Your net capital gains are the amount you reported on Form it reduced your income tax liability in a previous year.
FID-3, line 4 less the amount of net capital gains distributed In addition, you will need to include in your income any
to a beneficiary. amounts that were previously reported as a deduction.
For example: a capital gain of $46,675 is reported on line Enter here the amount of your endowment credit recapture
4. The income distribution deduction to the beneficiary tax. If, in addition to your recapture tax, part of the amount
included $12,482 of the capital gain. The 2% capital gains that is recaptured was claimed as a charitable contribution
tax credit is computed on the undistributed income of in a prior year, you will have to include in income on line 13,
$34,193. Form FID-3, any recoveries of this prior year deduction that
reduced your tax liability in the year of that deduction.
This credit is nonrefundable and it cannot reduce the
liability below zero. The credit is applied before any other Line 48 – Tax Liability. Add lines 46 and 47; enter the
credits and it cannot be carried back or carried forward. result here.
If the trust or estate is a nonresident, you must apply this Line 49 – Montana Income Tax Withheld. Enter the
credit to the Montana income tax computed on line 40 as if amount of your Montana income tax withheld and reported
it were a resident. on federal Form W-2, box 17 or on federal Form 1099-
R, box 10. When claiming Montana income tax withheld,
Line 42 – Resident Tax After Capital Gains Tax Credit.
you are required to attach a copy of your withholding
Complete this line if you are a resident or nonresident.
statement(s) (federal Form W-2 or 1099-R). Montana
If you are a resident, this is your resident tax after capital mineral royalty tax withheld or income tax withheld as a
gains tax credit. Skip line 42a and go to line 43. result of an ownership interest in a pass-through entity
(Form PT-WH) cannot be reported on this line.
If you are a nonresident, please go to line 42a.
NEW Line 50 – Montana Mineral Royalty Tax Withheld.
Line 42a – Nonresident Tax after Capital Gains Credit.
Effective January 1, 2008, royalty payments made to
Complete Schedule II on page 4 of Form FID-3 to calculate
owners of Montana mineral rights are subject to state
the nonresident tax. Enter the result from line 17 of
income tax withholding if certain thresholds are met. This
Schedule II on this line.
amount should not be confused with amounts deducted
Line 43 – Tax on Lump-Sum Distributions. If you qualify from your royalty payment for production taxes. Enter the
on your federal tax return for special averaging of your amount of the Montana income tax withheld from royalty
lump-sum distribution and have not included it as ordinary payments received during the year. This is generally
pension income in federal adjusted gross income, you must reported on federal Form 1099. If the mineral rights are
pay Montana income tax on this distribution. Your Montana held by a partnership or S corporation for which you
tax liability on the lump-sum distribution is 10% of the have an ownership interest or from which you receive a
federal tax calculated on federal Form 4972. Attach a copy distribution, enter the amount reported to you as your share
of federal Form 4972. of the withholding. Attach a copy of the Form 1099 issued
to the partnership or S corporation and a schedule detailing

9. 2008 Montana Income Tax Form FID-3 Instructions Page 7
the calculation of your portion of the withholding. For more Line 58 – Late File Penalty, Late Pay Penalty and
information, please visit the “Mineral Royalty Withholding” Interest.
icon at mt.gov/revenue.
• Late File Penalty. If you file your tax return after
Line 51- Estimated Tax Payments. If you have made April 15, 2009, or September 15, 2009 if you have
estimated tax payments, enter the total of the estimated a valid extension, you will be assessed a late
tax payments. Include in this amount the 2007 refund file penalty if tax due is reported on line 55. The
that you requested to be applied to the 2008 estimated penalty is equal to $50 or the amount of tax due,
income tax payments. Include on this line any amounts whichever is less. If you are filing your tax return
that are reported to you on Montana Form PT-WH. The late and you have a refund, you are not assessed a
Form PT-WH will show withholding (if applicable) from your late file penalty.
ownership in an S corporation, partnership or disregarded
To calculate your late file penalty, compare the
entity. Do not include in this total any income taxes paid for
amount on line 55 to $50. Your late file penalty is
a previous year since these are not estimated taxes paid
the lesser of these amounts.
for tax year 2008.
• Late Pay Penalty. If you have not paid 100% of
Line 52 – Extension Payments. If you paid an extension
your income tax liability by April 15, 2009, you are
payment on or before April 15, 2009 in order to qualify for
liable for a late payment penalty. Your late payment
an extension to file your tax return, enter that amount on
penalty is equal to 1.2% per month or fraction of a
this line. To determine if you need to make an extension
calendar month on the unpaid balance from April
payment, complete the Extension Payment Calculation
15, 2009 until it is paid. Please remember that an
Worksheet, Montana Form EXT-FID-08. This is a new
extension to file your return does not give you an
worksheet available for estates and trusts to use instead of
extension to pay your tax. To calculate your late
Form EXT-08.
payment penalty, multiply the amount on line 55
Line 53 – Refundable Credits. You may be eligible for one by 1.2% per month or fraction of a calendar month
or more of the four refundable credits that are available on your payment is late. For example, if you do not
your Montana income tax return. Complete Schedule III, have a valid extension and did not pay your tax
page 5 to determine the amount of the refundable credits due until May 10, 2009, your late payment penalty
to enter on this line. Refer to the section of instructions will be 2.4% (two months or fractions of a month
on Montana tax credits found on page 10 for a detailed x 1.2%) of the unpaid tax. In no instance will your
explanation of these refundable credits. late payment penalty exceed 12% (10 months X
1.2%).
Line 54 – Total Payments and Refundable Credits. Add
lines 49 through 53 and enter the result on this line. This is • Interest. If you have not paid 100% of your income
your total payments and refundable credits. tax liability by April 15, 2009, you will have to pay
8% annual interest computed daily on your unpaid
Line 55 – Tax Due. If line 48 is greater than line 54,
balance. As with the late payment penalty, an
subtract line 54 from line 48. This is your tax due.
extension of time to file your return does not extend
Line 56 – Tax Overpaid. If line 54 is greater than line 48,
the due date for paying your income tax so interest
subtract line 48 from line 54. This is your tax overpaid.
accrues from the original due date.
The Amount You Owe
To calculate your interest, multiply the amount on
Line 57 – Interest on Underpayment of Estimated line 55 by 0.02192% (0.0002192) times the number
Taxes. You are required to pay your income tax liability of days after April 15, 2009 your tax was paid.
throughout the year if you expect to owe an income tax
If you owe more than one of the items listed above, enter
liability of at least $500 after you subtract your tax credits
each applicable amount in the following worksheet.
and withholding payments. You can make payments
through withholding, installment payments of estimated Type Amount
taxes, or a combination of both.
Late file penalty
If you did not pay in advance at least 90% of the estate’s Late pay penalty
or trust’s current year tax liability (after applying your
Interest
credits) or 100% of the previous year’s tax liability (after
Total
applying your credits), you may have to pay interest on the
underpayment of your estimated tax. Enter the total on line 58. (You may wish to keep this
worksheet as part of your records for future reference.)
To calculate your interest, please complete Form EST-I,
2008 Underpayment of Estimated Tax by Individuals and Line 59 – Other Penalties. Include on Form FID-3, line 59,
Fiduciaries. You can get this form by visiting our web site at any of the following penalties if they apply to your situation.
mt.gov/revenue or by calling us toll free at (866) 859-2254
• First-Time Home Buyer Savings Account 10%
(in Helena, 444-6900).
Penalty. If you withdrew funds from your first-time

10. Page 8 2008 Montana Income Tax Form FID-3 Instructions
home buyer savings account for purposes other • Line 60c – Agriculture in Montana
than to pay for eligible costs for the purchase Schools Program. Your contributions to
of a single family residence, you are required this program fund the development and
to pay a 10% penalty on the withdrawal unless presentation of educational programs. This
the withdrawal is on the last business day of the program ensures Montana’s young people
business year. Complete Form FTB-P and enter have a better understanding of agriculture
the amount of the penalty on this line. Attach a in our state and how it relates to the rest of
copy of the Form FTB-P to the tax return. the world.
• Medical Care Savings Account 10% Penalty. If • Line 60d – End-Stage Renal Disease
you withdrew funds from your medical care savings Program. Your contributions fund a
account for purposes other than to pay for eligible program for persons suffering from end-
medical costs, you are required to pay a 10% stage renal disease. This program assists
penalty on the withdrawal, unless the withdrawal persons suffering from chronic renal
is on the last business day of your business year. disease in obtaining the medical, nursing,
Complete Form MSA-P and enter the amount of pharmaceutical and technical services
the penalty on this line. Attach a copy of Form necessary to care for the disease.
MSA-P to the tax return.
• Line 60e – Montana Military Family
• Farm and Ranch Risk Management Account Relief Fund. Your contributions to this
10% Penalty. If you have not distributed the program help provide funding for grants
deposits and income from your farm and ranch that aid Montana families in defraying the
risk management account within five years, they costs of food, housing, utilities, medical
are considered distributed. A 10% penalty is services, and other expenses when a wage
required on the amount of tax due on the amount earner has been called to active military
considered distributed. Enter on, this line, the duty.
amount of the farm and ranch risk management
Line 61 – Total Penalties, Interest and Contributions.
account 10% penalty.
Add the amounts on lines 57 through 60, and enter the
If you are required to pay more than one of the penalties result on this line. This is your total penalties, interest and
listed above, enter the sum of the penalties. check-off program contributions.
Line 60 – Contributions to Montana Check-Off Line 62 – Amount You Owe. If you have a tax due
Programs. Montana’s tax statutes provide you with the (amount on line 55), add lines 55 and 61 OR, if you have a
opportunity to contribute, via your income tax return, to the tax overpayment (amount on line 56) and it is less than 61,
following programs. You can contribute any amount to any subtract line 56 from line 61. Enter the result on this line.
one of these five programs. Your contribution will increase This is the amount you owe.
the amount you owe or reduce the amount of your refund. You can use the following two methods to submit your
payment.
• Line 60a – Nongame Wildlife Program.
Your contributions to this program are • Pay the amount due to the Montana Department
used to ensure the well-being of Montana’s of Revenue and include the completed Montana
watchable wildlife species, such as eagles, Fiduciary Tax Payment Voucher that is inserted
herons, bluebirds, great horned owls, in this booklet. Please write your FEIN and “Tax
loons, chipmunks, pikas, flying squirrels Year 2008” on the memo line of the check. Send
and painted turtles. your payment and voucher with your tax return to:
Montana Department of Revenue, PO Box 8021,
• Line 60b – Child Abuse Prevention
Helena, MT 59604-8021.
Program. Your contributions to this
program fund services and activities • You can visit our website at mt.gov/revenue under
related to the prevention of child abuse and downloadable forms to print a voucher to submit
neglect. If you enclose a separate check with your payment. This will ensure the payment is
with your timely filed tax return, you are properly credited to your account.
allowed to take a deduction for the amount
If you cannot pay the entire amount that you owe with your
of the contribution on the tax return you are
tax return, we encourage you to file your return timely and
filing with this contribution.
pay as much as possible. By filing and paying as much
as you can by April 15, 2009, you will not be assessed a
late file penalty, and you will reduce the amount of your
late payment penalties and interest that is assessed
against your outstanding balance. If you need to establish
a payment plan, please call us toll free at (866) 859-2254

11. 2008 Montana Income Tax Form FID-3 Instructions Page 9
(in Helena, 444-6900) as soon as possible to discuss your Enter the applicable undistributed income from page 1 in
options and make payment arrangements. column A and the Montana portion of that undistributed
income in column B of Form FID-3, Schedule II. Include
Line 63 – Overpayment. If you have a tax overpayment
only the income that has not been distributed.
(amount on line 56) and it is greater than line 61, subtract
line 61 from line 56 and enter the result. This is your The following line-by-line instructions are for nonresident
overpayment. estates and trusts that have Montana source income.
Line 64 – Enter the amount of your overpayment from line Line 1 – Interest Income. Enter the undistributed portion
63 that you want applied to the 2009 estimated tax account. of the interest income that was received from an installment
sale of real property in Montana. Include any undistributed
Line 65 – Refund. Subtract line 64 from line 63 and enter
interest that was received from a business or commercial
the result here. This is the amount of your refund. Only
property that is located in Montana and that is included in
refunds more than $1.00 will be issued.
the total federal income on Form FID-3, line 1.
If you wish to use direct deposit, enter your financial
Interest received from financial institutions, notes, dividends
institution’s routing number (RTN#) and your account
on capital stock, royalties from patents and copyrights is
number (ACCT#) in the space provided, and indicate
not considered Montana source income and therefore is not
whether this account is your checking or savings account.
taxable to Montana.
Your routing number will be nine digits and your account
can be up to 17 characters (both numeric and alpha). Line 2 – Ordinary Dividends. Generally, dividends are
If your financial institution is unable to accept the direct not considered Montana source income and should not be
deposit, we will mail you a refund check. A sample of a included on line 2, Column B.
personal check is provided for your convenience.
Line 3 – Business Income or Loss. Enter the
undistributed portion of the net income or loss that is
John Taxpayer 1234
Jane Taxpayer
le reported on Form FID-3, line 3 that was received from any
23 Main Street
p
Anyplace, MT 59000
am trade, business, profession, or occupation carried on in
Pay to the
S Montana. If you have more than one business, complete a
Order of ________________________________________________ $
separate federal Schedule C for each business activity.
____________________________________________________________ Dollars
Do not
Anyplace Bank
Account
Routing include the check Line 4 – Capital Gain or Loss. Enter the undistributed
Anyplace, MT 59000
Number
Number number in the account
portion of the gains or losses that are included in the total
number
I:250000005 I:200000” 86 “ 1234
on Form FID-3, line 4, that were received on the sale or
transfer of tangible property located in Montana.
Schedule I Instructions - Distribution to Report here any gain or loss from tangible property that
Beneficiaries is used or held in connection with the trade, business or
occupation.
The schedule of beneficiaries receiving distributions during
the tax year must be completed. List the name, address, Line 5 – Montana Source Rental Real Estate, Royalties,
social security number or federal employer identification Partnerships, S Corporations, etc. If the estate or trust
number, residency status and distributive share for each is a nonresident entity, enter the undistributed portion of
beneficiary receiving a distribution from the estate or trust the following income or losses that are included in the total
during the tax year. income on Form FID-3, line 5:
Enter the distributions reported to each beneficiary on his • Net rental income or loss from real property and
or her federal Schedule K-1 in spaces provided. The total of tangible personal property located in Montana.
Column G should equal the income distribution deduction
• Net royalties to the extent that the income received
reported on Form FID-3, line 35.
is for the production, fabrication, manufacturing,
Please use the dollar amount and not the percentage. If or other processing in Montana, or the patented
there are more than 10 beneficiaries, attach a separate product is produced in Montana.
schedule.
• Net copyright royalties to the extent that the printing
If you need additional space, you may make copies of and other publication originated in Montana.
Schedule I, or you may use a document formatted similarly
• Partnership income derived from a trade, business,
to Schedule I as a substitute for Schedule I.
occupation or profession carried on in Montana.
Schedule II Instructions – Nonresident Estate • S corporation income derived from a trade,
and Trust Tax, Undistributed Montana Source business, occupation or profession carried on
Income in Montana. S corporation income or loss is a
shareholder’s percentage of the corporation’s net
Note: Schedule II applies only to nonresident estates and income and deductions derived from Montana.
trusts. Attach Schedule K-1(s).

12. Page 10 2008 Montana Income Tax Form FID-3 Instructions
• Estate and trust income derived from a trade, Schedule III Instructions – Montana Tax
business, occupation or profession carried on in Credits
Montana. Estate and trust income or loss is the
There are three categories of credits available on Montana
beneficiary’s share of the income and deductions
Form FID-3. With the exception of the capital gains credit,
from a trust that has nexus in Montana. Attach
which is required to be applied before any other credit,
Schedule K-1(s).
you are not required to apply any of the other credits in a
Line 6 – Farm Income or Loss. Report the farm income particular order.
or loss that was received from the farming activity carried
For detailed instructions and forms, please visit our website
on in Montana. Attach a separate federal Schedule F if
at mt.gov/revenue.
necessary, showing only the Montana farm activity.
Nonrefundable Single-Year Credits
Line 7 – Ordinary Gain or Loss. Enter here an ordinary
gain or loss that was received from the sale or exchange of Line 1 – Credit for Income Tax Paid to Another State
business property located in Montana and reported on the or Country. Please see 15-30-124, MCA. This credit is
federal Form 4797. Attach a copy of the Form 4797. available to resident beneficiaries and to resident estates
and trusts only. If you paid an income tax to another state
Line 8 – Other Income. Enter any other income attributed
or country on income that is also taxable to Montana, you
to Montana that is not identified on lines 1 through 7. This
may be entitled to a credit against your Montana income
includes, but is not limited to:
tax liability for these income taxes paid to another state or
• Montana lottery winnings country. However, if you claimed the foreign tax credit on
your federal tax return, you can claim this credit for foreign
• Non-employee compensation
taxes on your Montana tax return only if you have unused
Line 9 – Montana Source Interest and Mutual Fund
federal credit that is not eligible to be carried back or
Dividends From Other States, County or Municipal
forward to another tax year. If you are a resident and have
Funds. Enter the interest and dividend income from bonds
unused federal credit or paid tax to another state, you will
and obligations of other states or their political subdivisions
need to complete Form FID-3, Schedule IV to determine
that are attributed to Montana.
your available credit.
Line 10 – Montana Source Dividends Not Included in
If all or part of the income reported on this tax return is
Federal Total Income. Enter the amount of the dividends
subject to taxation in another state or country and you
that you received as Montana source income that are not
have filed a tax return and paid a net income tax to a
already included in your total federal income.
state or foreign country, a credit may be claimed against
the Montana income tax. A credit is allowable against the
Line 11 – Montana Source Federal Refund. If a federal
Montana income tax only if the tax paid to a state or foreign
tax deduction was claimed in a prior year, any refund of that
country was based on net income of the same taxable
tax is income in the year it is received.
year and only if the income taxed by the state or foreign
Line 12 – Other Recoveries. If a deduction in a prior year country was derived from sources without Montana. A copy
was claimed and reduced the Montana taxable income, of the tax return filed with any state or foreign country for
and you were subsequently reimbursed, please show that which credit is claimed must be attached to Form FID-3.
reimbursement here. To determine if a credit is available, complete Form FID-3,
Schedule IV.
Line 13 – Other Montana Source Additions. Enter any
other source of Montana income that has not been included If you are a shareholder of an S corporation or a partner
or identified in the lines above. in a partnership and the S corporation or partnership pays
an income tax, excise tax, or franchise tax which was
Line 14 – Total Montana Source Income. Add lines 1
measured by and imposed on net income to another state
through 13; enter the result on this line.
or country, you can claim a credit for your share of these
Line 15 – Nonresident Tax Computation. Divide the taxes paid by the entity.
amount in column B, line 14, by the amount in column
You are not allowed to use other taxes paid by the S
A, line 14 and enter the result on this line. Carry to four
corporation or partnership, such as, but not limited to,
decimal places and do not enter more than 100%.
franchise or license taxes or fees that are not imposed on
Line 16 – Nonresident Estate and Trust Tax. Enter your or measured by net income, gross receipt taxes or gross
resident tax after capital gains credit reported on Form FID- sales taxes.
3, line 42.
When you claim this credit for the taxes paid by the entity,
Line 17 – Nonresident Estate and Trust Tax After you will have to add back to the Montana income your
Capital Gains Tax Credit. Multiply the amount on line 16 share of the S corporation’s or partnership’s federal tax
by the percentage amount on line 15. This is the amount of deduction that is included in your total income. This is
the nonresident tax after the capital gains tax credit. Enter required whether or not the S corporation or partnership
the result on Form FID-3, page 2, line 42a.

13. 2008 Montana Income Tax Form FID-3 Instructions Page 11
separately or non-separately stated the income tax and labor costs incurred but cannot exceed: $500 for
deduction on the federal Form K-1. conversion of a motor vehicle with a gross weight of 10,000
pounds or less; $1,000 for conversion of a motor vehicle
If you are required to file an income tax return in more
with a gross vehicle weight over 10,000 pounds. You have
than one state or country and you are entitled to the credit,
to apply this credit in the year in which the conversion was
complete a separate Schedule IV for each state or country
made. It cannot be carried back or carried forward.
in which an income tax return was filed and tax was paid on
the income that is also taxed to Montana. Line 6 – Health Insurance for Uninsured Montanans
Credit (Form HI). Please see 15-30-185, MCA. An
A credit is not allowed if the other state or country in which
employer can claim a credit for the health insurance
you have filed has allowed a credit against the taxes they
premiums that are paid by that employer for its employees.
have imposed on the net income.
If you are using insurance premiums to calculate the Insure
When calculating the credit on Form FID-3, Schedule IV, do Montana credit (line 27) these premium payments cannot
not include penalties and interest that you paid to the other be used to calculate the Health Insurance for Uninsured
state or country in the calculation. Montanans credit.
Line 7 – Elderly Care Credit (Form ECC). Please see
Line 2 – College Contribution Credit (Form CC). Please
15-30-128, MCA. You can claim a credit for paying certain
see 15-30-163, MCA. Taxpayers who make charitable
expenses of providing care to an elderly family member.
contributions to the general endowment funds of the
The credit is limited to $5,000 per qualifying family member
Montana University System or to the general endowment
in a taxable year and to $10,000 total for two or more family
fund of a Montana private college or its foundation during
members in a taxable year.
the year are allowed a credit in the amount of 10% of the
aggregate of these contributions. The maximum amount Line 8 – Recycle Credit/Deduction (Form RCYL). Please
of credit that can be claimed is $500 per year with no see 15-32-602 and 15-32-603, MCA. A business is entitled
provision for carryback or carryforward. to a credit for investments in equipment or machinery
used to collect, process, or manufacture a product from
Line 3 – Qualified Endowment Credit (Form QEC).
reclaimed material or depreciable property that treats
Please see 15-30-167, MCA. Beneficiaries are entitled to a
soil contaminated by hazardous wastes. The credit is a
credit for 40% of the present value of a planned gift made
percentage (5% to 25%) of the cost of the property, before
during the year to the qualified Montana endowment or for
consideration of trade-in equipment. An exception to this is
20% of a direct contribution to a qualified endowment. The
that the basis will be reduced by any trade-in for which this
maximum amount of the credit that a beneficiary may claim
credit has previously been taken.
is $10,000 with no provision for carryback or carryforward.
The value of the gift that you used when you calculated the Line 9 – Oilseed Crushing and Biodiesel/Biolubricant
credit cannot be claimed as a charitable contribution on Production Credit (Form OSC). Please see 15-32-701
Form FID-3, line 29. To learn more about the endowments and 15-32-702, MCA. A credit can be claimed for the cost
statewide, visit the Governor’s Task Force on Endowed of investments in qualifying depreciable property used to
Philanthropy website at www.endowmontana.org. crush oilseed crops for the purpose of making biodiesel
fuel or biolubricant, or used to construct or equip a facility in
If a charitable gift is recovered in the current year by the
Montana to be used for producing biodiesel or biolubricant.
estate or trust, the estate or trust may have to recapture
This credit can be carried over for seven succeeding years
this year the amount of the credit that was claimed in the
if the facility is crushing oilseed during that tax period.
year the credit was taken on the Montana tax return. The
recapture is reported on Form FID-3, page 2, line 47. If the facility for which the credit is claimed ceases
operations for a period of 12 consecutive months within
Line 4 – Energy Conservation Installation Credit (Form
five years of claiming the credit, the credit is subject to
ENRG-C). Please see 15-32-109, MCA. If the estate or
recapture.
trust is a resident entity, a credit can be claimed for energy
conservation investments made to the residence or other Line 10 – Biodiesel Blending and Storage Credit (Form
buildings. The credit is equal to 25% of the expenses for BBSC). Please see 15-32-703, MCA. A credit can be
a maximum credit of up to $500 per resident taxpayer. claimed for the cost of investments in depreciable property
Examples of the capital investments that qualify for this used for storing or blending biodiesel made from Montana
credit are hot water heaters and household heating or products with petroleum diesel for sale. This credit can be
cooling systems. Please visit our website at mt.gov/ carried over for seven succeeding tax years if the facility
revenue and look for the “Energy Related Tax Relief” icon is blending or storing biodiesel for blending. If the facility
for specific examples of what investments may or may not ceases blending biodiesel for sale for a period of 12
qualify. consecutive months within five years of claiming the credit,
the credit is subject to recapture. If the facility’s biodiesel
Line 5 – Alternative Fuel Credit (Form AFCR). Please
sales are not at least 2% of all diesel sales by the end of
see 15-30-164, MCA. There is a credit for equipment
the third year after the credit is initially claimed, the credit is
and labor costs that you incur in order to convert a motor
subject to recapture.
vehicle licensed in Montana to operate on alternative fuel.
The maximum credit is equal to 50% of the equipment