MCT: MEDIA Credit Transfer (Form MCT) (2024)
Montana · Montana DOR · Used for tax years 2024
Montana Form MCT notifies the Department of Revenue of a Montana MEDIA credit transfer. It records the transferor and transferee, the credit reference number, the amount transferred, the credit balances before and after the transfer, and the 2% transfer fee.
Who files this form
Form MCT must be completed when a Montana MEDIA credit is transferred from a seller (the transferor) to a buyer (the transferee). It notifies the Department of Revenue of the transfer.
The transferor is responsible for submitting the form and paying the 2% transfer fee. Both parties must complete their respective sections. The transferor may be the production company that generated the credit or a previous buyer who is reselling it.
What you'll need
Have the following information and payment ready:
- Names, FEINs or SSNs, and mailing addresses for both the transferor and transferee.
- The Unique Credit Reference Number (UCRN) issued by the Department of Revenue for the credit.
- The transferor’s credit balance before the transfer, the amount transferred, and the balance afterward.
- Both parties’ signatures, printed names, and signature dates.
- A check for the transfer fee, equal to 2% of the value of the credit transferred.
How to file
Complete both parties’ information, enter the UCRN and credit amounts, and have both parties sign and date Form MCT. If transferring credits associated with different UCRNs, complete a separate Form MCT for each transfer.
The transferor must submit Form MCT and remit the 2% fee by check. The fee must be remitted within 30 days of the transfer. Make the check payable to Montana Department of Revenue.
The submission instructions printed with the form direct you to send the form and check to:
Montana Department of Revenue
Attn: Media Credit Transfer Fee
PO Box 5835
Helena, MT 59604-6642
The supplied text contains conflicting ZIP codes. The payment address on the form itself lists the same department, attention line, and PO Box, but uses Helena, MT 59604-5835. For questions, the form lists (406) 444-6900, or Montana Relay at 711 for the hearing impaired.
Common mistakes
- Missing the fee payment window. Failure to remit the 2% fee within 30 days makes the transfer invalid, and the transferee may not claim the credit.
- Combining balances for different UCRNs. Track each credit’s balance separately after every transfer. Transfers involving different UCRNs require separate Forms MCT, even for the same buyer.
- Assuming a transfer extends the credit’s life. A transfer does not extend the five-year carryforward period.
- Overlooking the buyer’s risk. The Department of Revenue may recapture or disallow the credit if the transferor did not have rights to it. The transferee’s recourse is against the transferor, not the department.
Questions people ask
What is the UCRN?
The Unique Credit Reference Number is issued by the Department of Revenue to the production company when the credit is approved and validated. It must be provided when transferring the credit.
How often can a MEDIA credit be transferred?
A MEDIA credit can be transferred only once per calendar year.
Is there a minimum price for a transferred credit?
Yes. The minimum transfer value is 85% of the credit’s value. For example, a buyer must pay at least $8,500 for a $10,000 credit.
Does a partnership need Form MCT when passing the credit through to its owners?
No. A credit flowing through from a partnership to its owners is not a transfer requiring Form MCT or the 2% fee. Owners may later transfer the credit or claim it on their individual income tax return using Form Media-Claim.
Does buying a credit restart its carryforward period?
No. The credit may be carried forward for five years from issuance, and a transfer does not extend that period. The printed example says a credit issued for tax year 2021 and transferred in 2024 may still only be carried forward through tax year 2025.