IUFC: Infrastructure User Fee Credit (2024)
Montana · Montana DOR · Used for tax years 2024
Montana Form IUFC calculates the 2024 Infrastructure User Fee Credit. It reports the current-year credit, any share received from a partnership or S corporation, and applicable credit carryforwards or carrybacks.
Who files this form
Form IUFC is used to claim Montana’s Infrastructure User Fee Credit for 2024.
A business may claim the credit for fees it pays to use infrastructure if it was created or expanded as a result of a Montana Board of Investments loan to enhance economic development and create jobs in the basic sector of the economy.
Partners, members, and shareholders of a partnership, S corporation, or LLC taxed as either may claim their portion of the credit. Their share is based on the portion of the entity’s income or loss they report for Montana tax purposes. Those claiming a share must include a completed Form IUFC with Form 2 or Form PTE.
- Individuals, partnerships, and S corporations complete Part I.
- C corporations skip Part I and complete Part II.
What you'll need
- A copy of the Montana Board of Investments letter showing the current year’s interest and principal paid. Include it when claiming the credit.
- A detailed schedule of credit carryforwards or carrybacks, if applicable. For C corporations, provide separate-entity details.
- Your Montana Schedule K-1 (PTE), if you received a share of the credit from a partnership or S corporation, plus the entity’s name and FEIN.
- If you received credits from multiple partnerships or S corporations, a statement identifying each entity and the credit amount it distributed to you.
- For C corporations, each entity’s name, FEIN, and Montana tax liability. The instructions identify Form CIT, page 3, line 10, or Schedule K-Combined, line 7n for an entity on a combined return with more than one entity active in Montana.
How to file
Individuals, partnerships, and S corporations: Complete Part I. Add lines 1, 2, and 3 and enter the total on line 4. Transfer that amount to Form 2, Schedule III – Tax Credits for individuals, or Form PTE, Schedule II for partnerships and S corporations. Partners, members, and shareholders claiming their share must include Form IUFC with Form 2 or Form PTE.
C corporations: Complete Part II, using a column for each entity with a Montana infrastructure loan repayment agreement with the Montana Board of Investments. Use additional pages if needed. For each entity, line 7 is the lesser of its available credit on line 5 or Montana tax liability on line 6. Add the line 7 amounts, including additional pages, on line 8 and transfer the total to Form CIT, Schedule C.
Include the Board of Investments letter and any required schedules or statements. The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Applying carryovers first. Apply the current year’s credit before any credit carryover.
- Entering a carryover on Part I, line 3 for a partnership or S corporation. These entities must not enter an amount on that line.
- Leaving out supporting records. Include the Board of Investments letter and a detailed carryforward or carryback schedule, if applicable.
- Omitting details for multiple pass-through credits. Add the credits together and include a statement identifying each entity and the amount it distributed to you.
- Using calendar-year amounts without adjustment as a fiscal-year C corporation filer. The Board’s letter uses calendar-year amounts. Prorate the credit based on the number of months.
- Exceeding the credit limits. The current-year credit is limited to current-year tax liability, and the total credit claimed may not exceed the loan amount.
Questions people ask
How is the current year’s credit calculated?
It is the total interest and principal paid as reported in the Montana Board of Investments letter. Include a copy of that letter.
Can unused credit be carried to another year?
Yes. The credit may be carried back three tax years or forward seven tax years. Apply the current year’s credit before any carryover, and include a detailed schedule.
How is my share of a partnership or S corporation credit determined?
Your share is based on the portion of the entity’s income or loss you report for Montana tax purposes. Your credit amount is reported on Montana Schedule K-1 (PTE).
What limits apply to the credit?
The credit is limited to your current-year tax liability. The total tax credit claimed may not exceed the loan amount.
Where can I ask questions?
Call (406) 444-6900, or use Montana Relay at 711 for the hearing impaired.