Montana R&D Tax Credits Content

Montana does not offer a state-specific R&D tax credit, but businesses can claim the federal R&D tax credit for qualified research expenses incurred in Montana. Contact Strike Tax to maximize your savings.

Qualifying activities must be technological, aimed at developing or improving a business component, eliminate uncertainty, and involve experimentation. Examples include product innovation or process improvements in industries like agriculture or energy. Strike Tax can identify qualifying projects.

Yes, startups can claim the federal R&D credit, including a payroll tax offset of up to $500,000 annually for up to five years if gross receipts are under $5 million and no receipts for more than five years. Strike Tax can guide eligibility.

Maintain contemporaneous records such as project descriptions, time tracking, wage allocations, supply costs, and contract research agreements. For 2025, Form 6765 requires detailed business component information in Section G for claims over certain thresholds. Strike Tax ensures audit-ready documentation.

Attach Form 6765 to your federal tax return. In Montana, report the federal credit on your state return if it impacts state taxes. Strike Tax streamlines the process.

Montana has no state R&D credit, so there are no state-specific changes. For federal credits, starting in 2025, Section G of Form 6765 is required for all claims, mandating detailed reporting of business components to enhance compliance. The IRS has also extended transition relief for certain refund claims. Strike Tax can help navigate these updates.

Federal R&D credits can be carried forward for up to 20 years or back 1 year to offset tax liability. In Montana, this applies directly to federal filings, with no state interaction. Strike Tax optimizes carryforward strategies for maximum value.

Retain 3–6 years of documentation, including payroll records, project timelines, expense invoices, and uncertainty/ experimentation logs. Montana-based activities must align with IRC §41 standards. Strike Tax prepares audit defenses to protect your claims.

Yes, the federal R&D credit is available nationwide for qualified research expenses (QREs), regardless of location, as long as they meet IRC §41 criteria. Montana businesses can claim QREs from anywhere, but focus on in-state innovation for grant synergies. Strike Tax verifies nationwide eligibility.

The federal R&D credit reduces federal taxable income, which flows through to Montana's individual or corporate income tax calculations. No direct state credit exists, but it indirectly lowers Montana liability. Strike Tax ensures seamless federal-state alignment.