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Increased MEDIA Tax Credit – Tax News You Can Use

House Bill 340, passed during the 67th Montana Legislative Session, increased the MEDIA Tax Credit cap beginning with tax year 2022.

This bill increased the  total tax credit available to production companies involved in qualified production activities in Montana. The credit increased from $10 million to $12 million, beginning in tax year 2022 .

Initially established in 2019 to enhance Montana’s economy by expanding film and other media production in the state, the MEDIA Credit is administered by the Department of Commerce’s film office in cooperation with the Department of Revenue.

The credit is an incentive for production companies to film in Montana; the credit takes the form of a 20% transferrable income tax credit for both production and compensation expenditures incurred while in the state. Production companies can also receive an additional credit for meeting various other milestones or thresholds. Any unused credit can be carried forward up to 5 years or transferred to another party.

Production companies must apply with the Department of Commerce to receive the credit. The credit is available on a first-come, first-serve basis. The credit’s availability is tracked on the department’s dedicated MEDIA credit webpage. The MEDIA page displays how much of the credit has been reserved, how much is available, and how much is pending. The page also provides further details on the credit as well as links to the related forms.

This bill is subject to the ARPA Savings Clause; if the savings clause were to be triggered, the credit limitation will revert to the previous limitation of $10 million. For 2022, however, the clause was not triggered, thereby assuring that the new maximum will be in effect for this year.