Schedule III: Schedule III – Tax Credits (2025)
Montana · Montana DOR · Used for tax years 2025
Montana Form 2 Schedule III reports your nonrefundable and refundable tax credits for 2025. It also calculates the credit for income taxes paid to another state or country, separately for ordinary income and net long-term capital gains.
Who files this form
Use 2025 Montana Form 2, Schedule III to report the tax credits listed on the schedule, including nonrefundable and refundable credits.
Part II calculates the credit for income taxes paid to another state or country. Complete a separate Part II page for each state or country.
What you'll need
Enter your name and Social Security number on the schedule.
Include the following forms if you claim the related credit:
- Qualified endowment credit: Form QEC.
- Recycle credit: Form RCYL.
- Trades education and training credit: Form TETC.
- Historic property preservation credit: federal Form 3468.
- Infrastructure users fee credit: Form IUFC.
- Jobs growth incentive credit: Form JGI.
- Adoption credit: Form ADPT.
The schedule also asks for credit confirmation codes for the innovative educational program and student scholarship organization credits, a CGR Account ID for the contractor’s gross receipts tax credit, a UCRN for the MEDIA Credit, and a credit certificate number for the jobs growth incentive credit. For a carryforward from an expired or repealed credit, it asks for a tax credit code.
To complete Part II, have the income and tax liability amounts for the other state or country. The calculation also uses federal income and capital gain amounts, Montana tax amounts, and, for part-year residents and mixed residency filers, specified amounts from Schedule II.
Common mistakes
- Do not combine multiple states or countries on one Part II page. Complete a separate page for each, then report the total of all Part II, line 21 amounts on Part I, line 1.
- Exclude net long-term capital gains from the ordinary-income amounts where Part II directs you to do so. Report the capital gain amounts in the separate capital gains section.
- Round Part II, lines 6, 8, 16, and 18 to six decimal places. Do not enter more than 1.000000.
- If you have multiple CGR accounts, mark the box on Part I, line 8.
- Transfer the nonrefundable credit total from Part I, line 14 to Form 2, page 1, line 9. Transfer the refundable credit total from Part I, line 17 to Form 2, page 1, line 17.
Questions people ask
Which credits are listed as refundable?
The adoption credit and unlocking public lands credit are listed as refundable. Add them on Part I, line 17.
How do I total my nonrefundable credits?
Add Part I, lines 1 through 13. Enter the total on line 14 and on Form 2, page 1, line 9.
How is the credit for taxes paid to another state or country calculated?
Part II calculates separate credits for Montana ordinary income tax and Montana net long-term capital gains tax. Line 10 uses the smallest amount from lines 4, 7, and 9. Line 20 uses the smallest amount from lines 14, 17, and 19. Add lines 10 and 20 on line 21.
Does Part II have special entries for part-year residents and mixed residency filers?
Yes. These filers enter Schedule II, line 16 on Part II, line 3; Schedule II, line 21 on Part II, line 13; and Schedule II, line 24 on Part II, line 15.