Montana: Credit and deduction for recycling of material extended

Abstract

Under. S.B. 358, the termination date of the Montana corporation license, corporation income, and personal income tax credit for investment in property to process reclaimable material and the deduction for the purchase of recycled material has been extended and the amount of the credit has been changed.

The termination date of the Montana corporation license (income), corporation income, and personal income tax credit for investment in property to process reclaimable material and the deduction for the purchase of recycled material has been extended and the amount of the credit has been changed.

Termination date extended: The termination date of

* the credit allowed an individual, corporation, partnership, or small business against the corporation license (income), corporation income tax or the personal income tax for investments in depreciable property to collect or process reclaimable material or to manufacture a product from reclaimed material and

* the deduction from gross corporate income allowed in computing net income or from adjusted gross individual income allowed in computing taxable income in an amount equal to 10% of a taxpayer's expenditures for the purchase of recycled material is extended to December 31, 2001. Previously, the credit and deduction were scheduled to terminate on December 31, 1995.

* 25% of the cost of the property on the first $250,000 invested,

* 15% of the cost of the property on the next $250,000 invested, and

* 5% of the cost of the property on the next $500,000 invested.

A credit may not be claimed for investments in depreciable property in excess of $1 million.

Upon the termination of this schedule on December 31, 1997, the amount of the credit will revert to 25% of the cost of the property purchased to collect or process reclaimable material or to manufacture a product from reclaimed material, which may be claimed only in the year in which the property was purchased. (Ch. 542 (S.B. 358), Laws 1995, effective as noted above.)