Contractor's Gross Receipt Tax Credit
Eligibility
To qualify, you must:
- Be a contractor performing public construction work under a government contract.
- Pay the 1% gross receipts tax as part of your work.
Contributions
The credit is based on the license fees paid with the 1% gross receipts tax.
Benefit
Taxpayers may either claim a nonrefundable income tax credit or a refund for personal property taxes and certain fees paid on assets used in their contracting business.
The income tax credit can offset individual income tax or corporate income tax. It cannot offset any taxes owed by a pass-through entity.
This credit can also be used to request a refund of personal property taxes and motor vehicles fees you used as a contractor, including:
- County Option Tax
- Light Vehicle Registration Fee
- Permanent Light Vehicle Registration Fee
- Truck Flat Fee
To claim a refund of personal property taxes and fees, file the Contractor's Gross Receipts Application for Refund of Personal Property Taxes and Motor Vehicle Fees Paid (Form CGR-3) on our TransAction Portal.
Carryover
This credit can be carried forward up to five years.
Forms and Resources
- Contractor's Gross Receipts Tax
- Montana Business Tax Guide: Public Contractor's 1% Gross Receipts Tax