TETC: Trades Education and Training Credit (2024)
Montana · Montana DOR · Used for tax years 2024
Montana Form TETC is used to claim the Trades Education and Training Credit for employers. It reports eligible employees, their trade professions, and education or training expenses, and calculates a credit equal to 50% of qualified expenses, limited to $2,000 per eligible employ
Who files this form
Employers claiming the 2024 Trades Education and Training Credit must include Form TETC with their Montana tax return.
The credit is for employers that incur expenses providing eligible employees with education or training for a trade profession. An eligible employee works, or is expected to work, in a trade profession in Montana for at least 6 months of the year in which the education or training occurs. The trade profession must be on the list included with the form.
What you'll need
To complete Form TETC, have the following information ready:
- Your name as it appears on your Montana tax return and your FEIN or SSN.
- Each eligible employee’s name, SSN, and trade profession from the form’s list.
- Education or training expenses for each employee.
- Amounts deducted elsewhere or paid through a grant or similar program.
If you claim the credit for more than 15 employees, attach a statement with the same information requested in the table. Online education must provide suitable proof of completion.
How to file
Complete Form TETC and include it with your Montana tax return when claiming the credit.
- Enter your name and FEIN or SSN.
- In Columns A through C, enter each eligible employee’s name, SSN, and listed trade profession.
- In Column D, enter each employee’s education or training expense.
- In Column E, enter amounts deducted elsewhere or paid through grants or similar programs.
- Subtract Column E from Column D and enter the result in Column F.
- Multiply Column F by 50% and enter the result in Column G.
- In Column H, enter the smaller of Column G or $2,000.
- Add Column H amounts. Enter the smaller of that total or $25,000 as your credit.
The provided text does not specify a mailing address or electronic filing method.
Common mistakes
- Claiming both a deduction and a credit for the same expense. You cannot do both. The form says that if you deducted training and education expenses from taxable income, report them as an addition to income on your Montana income tax return.
- Including grant-funded expenses in the credit. Expenses paid through a grant or similar program cannot be used to figure the credit. Report those amounts in Column E.
- Exceeding the limits. The credit cannot exceed $2,000 per eligible employee or $25,000 total.
- Carrying excess credit to another year. This credit is nonrefundable, and excess credit cannot be carried to another tax year.
- Leaving out required attachments. Include Form TETC with your return, and attach a statement with the table information if claiming more than 15 employees.
Questions people ask
How much is the credit?
The credit equals 50% of qualified trades education and training expenses incurred during the year, up to $2,000 per eligible employee and $25,000 total.
What expenses qualify?
Qualified expenses are paid to a third party to help an employee develop additional techniques and skills in a trade profession. They include tuition, fees, books, supplies, and equipment required as part of a qualified training method.
What training methods qualify?
Training may be classroom-based, with the employee traveling to the educator or trainer; on-site, with the educator or trainer traveling to the business and customizing training to the employer’s needs; or online and interactive. Online training must give the employee access to the educator or trainer, involve demonstrating or practicing the subject matter, and provide suitable proof of completion.
Where can I ask questions?
Call (406) 444-6900, or Montana Relay at 711 for the hearing impaired.