IUFC: Infrastructure User Fee Credit (2025)
Montana · Montana DOR · Used for tax years 2025
Montana Form IUFC calculates the infrastructure user fee credit for 2025. It reports the current-year credit, credits received through partnerships or S corporations, and applicable credit carryforwards or carrybacks, with a separate computation for C corporations.
Who files this form
Form IUFC is used to claim Montana’s infrastructure user fee credit. A business may claim the credit for fees paid 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 apply their share of the credit against their income tax or corporate income tax liability. Their share is based on the portion of the entity’s income or loss they report for Montana tax purposes.
- Individuals, partnerships, and S corporations complete Part I.
- C corporations skip Part I and complete Part II.
- Partners, members, and shareholders claiming their share must include a completed Form IUFC with Form 2 or Form PTE.
What you'll need
- A copy of the Montana Board of Investments letter showing the current year’s interest and principal paid. Include it with your return.
- A detailed schedule of any credit carryforward or carryback, including separate entity amounts when applicable.
- Your Montana Schedule K-1 (PTE), if you received a share of the credit from a partnership or S corporation, plus that entity’s name and FEIN.
- If you received credits from multiple partnerships or S corporations, a statement identifying each entity and the amount it distributed to you.
- For C corporations, each entity’s name, FEIN, and Montana tax liability from Form CIT, page 3, line 10. For a combined return with more than one entity active in Montana, use that entity’s Schedule K-Combined, line 7n.
How to file
Individuals, partnerships, and S corporations: Complete Part I. Enter the current year credit, any distributed share of the credit, and any applicable individual carryforward or carryback. Add lines 1 through 3. Report the line 4 total on Form 2, Schedule III – Tax Credits, or Form PTE, Schedule II, as applicable.
C corporations: Complete Part II with a column for each entity that has 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 all line 7 amounts, including additional pages, on line 8. Report that amount on Form CIT, Schedule C.
Include the required letter and applicable schedules. The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Applying a carryover before the current year credit. Apply the current year credit first.
- Entering an amount on Part I, line 3 for a partnership or S corporation. Those entities must leave that line without an amount.
- Omitting the Board of Investments letter or an applicable detailed carryforward or carryback schedule.
- Combining credits from multiple partnerships or S corporations without including a statement identifying each entity and its distributed credit.
- Using the full calendar-year letter amount for a fiscal-year C corporation. The instructions require prorating the credit based on the number of months.
- Claiming more than the limits allow. The current-year credit is limited to current-year tax liability, and the total credit claimed cannot exceed the loan amount.
Questions people ask
How is the current year credit calculated?
It is the total interest and principal paid as reported in the Montana Board of Investments letter.
Can unused credit be carried to another year?
Yes. It may be carried back three tax years or forward seven tax years. Apply the current year credit before any credit carryover.
How is a partner’s or shareholder’s share determined?
It is based on the portion of the entity’s income or loss reported for Montana tax purposes. The distributed credit is reported on Montana Schedule K-1 (PTE).
Where can I get help?
Call (406) 444-6900, or use Montana Relay at 711 for the hearing impaired.