(1) A credit for increases in qualified research expenses and basic research payments is allowed to a qualified corporation, an individual, a small business corporation, a partnership, a limited liability partnership, or a limited liability company. Except as specifically limited by Montana law, 15-31-150 , MCA, this credit is determined in accordance with 26 USC 41 as that section read on July 1, 1996.

(2) A taxpayer must file form RSCH providing information as prescribed on the form, which includes a copy of the form filed with the IRS to claim the federal credit for increasing research activities. If amounts paid or incurred do not apply to the federal credit after a termination date provided in 26 USC 41, a taxpayer whose expenses qualify for the Montana credit after the termination date must submit with form RSCH the information required on the federal form for the tax year immediately preceding the tax year in which the termination occurred.

(3) Form RSCH may be obtained from the department upon request or is available on the department's web site under the downloadable forms at www.discoveringmontana.com/revenue.

(4) Form RSCH must be filed with the tax return and mailed to the Department of Revenue, P.O. Box 5805, Helena, Montana 59604-5805 for individual taxpayers and P.O. Box 8021, Helena, Montana 59604-8021 for corporations, small business corporations, partnerships, limited liability partnerships and limited liability companies.