Montana Film Production Credit

Film Production Credit
Form FPC (Obsolete)
Clear Form

MONTANA
FPC
Rev 04 14

2014 Film Production Credit
15-31-901 through 15-31-911, MCA

Name (as it appears on your Montana tax return)
Social Security
Number

-

-

OR

Federal Employer
Identification Number

-

If this credit is passed through to you from a partnership or S corporation, enter the entity’s name, FEIN and the
percentage used to report the partnership or S corporation’s income or loss for Montana income tax purposes.
Name_____________________________________ FEIN 	

-

	Percentage____________ %

Film Certification Number issued by the Montana Department of Commerce____________________________________
Employment Production Credit
1.	 Enter your 2014 employment production credit from Schedule I,
Column E, line 19 here. This is your employment production credit................................ 1.___________________
	
Employment Production Credit Election: The taxpayer can make a one-time election to claim the employment
production credit as follows:
•	 the credit may be refunded, or
•	 the credit may be applied against the 2014 tax liability with any unused credit carried forward for the four
succeeding tax years.
	
If the production company is a C corporation, sole proprietorship, or a limited liability company taxed as a C
corporation, the election is made by the production company. If the production company is an S corporation, a
partnership, or a limited liability company taxed as an S corporation or partnership, the election is made by each of
the shareholders, partners or members for their share of the credit, and not by the entity.
Mark the box below for your election.
	

q

Carryover Credit	

q

Refundable Credit

Qualified Expenditures Credit
2.	 Enter your 2014 qualified expenditures credit from Schedule II, Column D, line 23 here.
This is your qualified expenditures credit.......................................................................... 2.___________________
The qualified expenditures credit portion of your film production credit is required to be refunded for tax year 2014 if your
tax liability is less than the amount of the credit. If you are claiming the Qualified Expenditures Credit, a corporate officer,
partner or member is required to certify that all Montana vendors were paid in full.
Certification Statement
I,_____________________________________________ , certify under penalty of false swearing, as provided in 15-31908(2)(b), MCA, that each Montana vendor has been paid in full for all goods and services purchased in connection with
the state-certified production.
	
	

____________________ 	
Date	

	
	

_______________________________________________________
Signature of Corporate Officer, Partner, or Member
_______________________________________________________
Printed Name and Title

Total Film Production Credit
3.	 Add lines 1 and 2. This is your total film production credit............................................... 3.___________________
►You are required to complete a separate Form FPC for each qualifying production for which you are applying for the
production credit.
Where to Report Your Credit
► Individuals: Form 2, Schedule V
► C corporations: Form CIT, Schedule C

► S corporations: Form CLT-4S, Schedule II
► Partnerships: Form PR-1, Schedule II

Clear Page
Form FPC, Page 2 - 2014	

SSN	

-

-

	

OR	 FEIN	

-

Schedule I, Employment Production Credit
►► If you have more than 16 cast and crew members participating in a qualified production, you may use additional
copies of Schedule I.
►► Do not include the compensation listed below as a deduction when computing your net income for corporation
income tax or individual income tax purposes.
Column A

Enter the names alphabetically, by
last name, of all Montana residents
who are participating as a cast or
crew member in the production.

Column B

Enter the participant’s
Social Security
Number.

Column C

Column D

If the participant
is a Montana
resident and you
marked “yes” in
Do you
Column C, enter
have a
the first $50,000
declaration
Enter the total amount
or less of actual
of
of compensation paid
compensation
residency
during your production
paid to each
(Form
to each resident listed
Montana
FPC-RD)
in Column A.
resident. (Do not
on file?
enter an amount
Mark “yes”
in Column E if
or “no.”
the participant is
not a Montana
resident.)

1. Enter on line 1, column E, the aggregate amount of compensation paid to Montana residents

previously reported at the completion of principal photography. Include a copy of your previously
submitted Form FPC-PP with this application.................................................................................. 1.

2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.

Column E

q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no
q	yes
q	no

18. Add the amounts in Column E and enter the result here.............................................................. 18.
19. Multiply the amount in Column E, line 18 by 0.14 (14%) and enter the results here

and on page 1, line 1. This is your employment production credit.......................................... 19.

Clear Page
Form FPC, Page 3 - 2014	 SSN	

-

-

	

OR	 FEIN	

-

Schedule II, Qualified Expenditures Credit
►► If you have more than 21 qualified expenditures, you may use additional copies of Schedule II.
►► Do not include the expenditures listed below as a deduction when computing your net income for corporation income
tax or individual income tax purposes.
Column A
Column B
Column C
Column D
Enter the name of the business
Enter a brief description of the qualified
Enter the date
Enter the total
or individual to which a qualified
expenditure (i.e. lumber, lodging, meals, of the qualified amount of
expenditure was made.
maintenance, etc.).
expenditure.
the qualified
expenditure.
1. Enter in line 1, column D, the aggregate amount of expenditures previously reported at the
completion of principal photography. Include a copy of your previously submitted Form FPC-PP
with this application......................................................................................................................... 1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22. Add the amounts in Column D and enter the result here.............................................................. 22.
23. Multiply the amount in Column D, line 22 by 0.09 (9%) and enter the result here and
on page 1, line 2. This is your qualified expenditures credit.................................................... 23.

If you file your Montana tax return electronically, you do not need to mail this form to us unless we ask you for a copy.
When you file electronically, you represent that you have retained the required documents in your tax records and will
provide them upon the department’s request.

Form FPC General Instructions
What is a “state-certified production?”
A state certified production is a production that is
certified by the Montana Department of Commerce
and is produced by a production company that has a
national or regional distribution plan that includes, but is
not limited to, a major theatrical exhibition, film festival,
television network, cable television programming,
magazine advertising, or video or internet distribution.
How do I certify my production and obtain a Film
Certification Number?
To obtain certification, you have to file an application
with the Montana Department of Commerce. You can
request an application form by contacting the Montana
Department of Commerce Film Office at (406) 841-2876
(in Montana) or 800-553-4563 (out-of-state), or e-mail
them at [email protected]. Once the Montana Film
Office reviews and approves your application, they will
assign a certification number to your production and
notify the Montana Department of Revenue.
How do I determine the amount of compensation
I paid to a Montana resident when calculating my
employment production credit?
Include the salaries, wages and any other compensation
such as related taxable benefits that are reported as
social security wages or taxable benefits on federal
Form W-2. Report the eligible compensation expenses
that were paid to Montana residents during your
production. Do not include amounts paid to independent
contractors for contract labor that are reportable on
federal Form 1099-MISC.
How do I determine the amount of my qualified
expenditures when calculating my qualified
expenditures credit?
The expenditures that qualify for this credit are those
made by you in Montana that are directly related to
your state-certified production. This includes, but may
not be limited to, expenses for lodging, restaurant and
food expenses, location fees, lumber and construction
materials, rental of production equipment and vehicles,
and supplies and materials that will be used in the
production.
The employment production credit is based on the
amount of compensation that I paid to Montana
residents. How do I determine if the individual I
employ is a Montana resident?
During the hiring process, the production company is
required to obtain a declaration of residency form, Form
FPC-RD, for each Montana resident. The form, along
with the supporting evidence listed, must be retained in
your company records. See Form FPC-RD for detailed
information defining a Montana resident.

As a pass-through entity, how do I complete Form
FPC and report the credit information to the owners
of my pass-through entity?
An S corporation, partnership or limited liability company
completes Form FPC, along with Schedules I and II,
but does not make the Employment Production Credit
Election. The election is made by each of the owners of
your pass-through entity for their portion of the credit.
Attach Form FPC to your Montana information return,
Form CLT-4S or PR-1.
On the Montana Schedule K-1, provide your owners’
shares of the credit, compensation and expenses
relating to these credits. The amount of film production
credits, compensation and qualified expenditures that
are required to be added back to income are allocated
to each of your owners based on the same proportion
that is used to report their income or loss for state tax
purposes.
How do I complete Form FPC and obtain the credits
if I am an owner in a pass-through entity?
As a shareholder of an S corporation, a partner of a
partnership, or a member of a limited liability company
that has qualified for the film production credit, you are
entitled to apply the portion of the credit that has been
passed through to you against your tax liability. Your
portion of the credit can be obtained from the Montana
Schedule K-1 that you received from the entity. In
addition to reporting your portion of the credit, you will
need to provide the partnership’s or C corporation’s
name and Federal Employer Identification Number.
You are required to complete your personal information
on the top of Form FPC, page 1. Report the amount of
your credit and make the election to have any unused
employment production credit refunded or to have it
carried forward and applied against your tax liabilities
in the next succeeding four years. If you are a partner
or shareholder in more than one partnership or S
corporation, you will need to complete a separate Form
FPC for each entity you are receiving the credit from.

Film Production Credit
A production company will first need to complete Form
FPC, Schedules I and II, before it can calculate the film
production credit.
Schedule I Employment Production Credit
Column E, Line 1 – Enter on Column E, line 1, the total
amount of qualified compensation previously submitted,
and include a copy of your previously submitted Form
FPC-PP with the application.
Column A – Enter the names alphabetically by last
name of all resident cast and crew members who
were employed by the production company during the

production. Do not include in this list any compensation
that you have elected to treat as qualified expenditures.
Do not include nonresidents who did not perform
services in Montana.
If you have more than 16 cast and crew members
participating in the qualified production, you may use
additional copies of Schedule I.
Column B – Enter the social security number of each
cast or crew member.
Column C – Before you can claim the cast or crew
member as a Montana resident, you will need to
have the individual complete Montana Form FPC-RD,
Montana Declaration of Residency. You are required to
maintain the forms in your company records and provide
us a copy if requested.
Column D – Enter the total amount of compensation
that you paid to each Montana resident during your
production.
Include the amount of social security wages and taxable
benefits that is reported on federal Form W-2. Do not
include amounts paid to independent contractors for
contract labor reportable on federal Form 1099-MISC.
Column E – Your employment production credit is
limited to 14% of the first $50,000 of compensation paid
to each Montana resident. Add the amounts in Column E
and enter on line 18. Multiply the amount by 0.14 (14%)
and enter the result on line 19. Enter the result on Form
FPC, page 1, line 1. This is your employment production
credit.
Schedule II Qualified Expenditures Credit
Column D, Line 1 – Enter on Column D, line 1, the total
amount of qualified expenditures previously submitted,
and include a copy of your previously submitted Form
FPC-PP with the application.
Column A – Enter the name of the business or
individual that you paid. Do not include any expenses
that you previously submitted and reported on line 1.
Refer to page 1 of the instructions for a definition of
qualified expenditures.
Column B – Enter a brief description of the qualified
expenditures (i.e. lumber, lodging, meals, maintenance,
etc.).
Column C – Enter the date you paid the qualified
expenditure.
Column D – Enter the total amount of each qualified
expenditure. Add the amounts in Column D and enter on
line 22. Multiply the amount by 0.09 (9%) and enter the
result on line 23. Enter the result on Form FPC, page 1,
line 2. This is your qualified expenditures credit.

Total Film Production Credit
Line 1 – Enter your employment production credit from
Schedule I, Column E, line 19.
If the production company is a C corporation, sole
proprietorship or limited liability company taxed
as a C corporation, the election is made by the
production company. If the production company is
an S corporation, a partnership, or a limited liability
company that elects to be taxed as an S corporation
or partnership, the election is made by each of the
shareholders, partners, or members for their share of the
credit, and not by the entity.
The election is a one time irrevocable election to
treat any unused employment production credit as a
carryforward credit that can be carried forward up to four
succeeding tax years and applied against any further
tax liabilities or to have it refunded to you upon filing this
year’s tax return.
Line 2 – Enter your qualified expenditures credit from
Schedule II, Column D, line 23 on line 2.
Line 3 – Add the amount on lines 1 and 2 and enter the
result on line 3. This is your combined film production
credit.
Recapture of previously claimed credits. If the
Department of Commerce revokes a production
company’s state certification, the production company
is required to refund any amount of the employment
production or qualified expenditures credit claimed and
to pay penalties and accrued interest as if the amount
required to be refunded is unpaid tax.

Administrative Rules of Montana: Title 42, Chapter
4, Subchapter 33
Questions? Call us toll free at (866) 859-2254 (in
Helena, 444-6900).