(1) An expense not specifically listed in 15-31-903, MCA, may still be considered a qualified expenditure.
(2) In order for any expenditure to be properly considered a qualified expenditure, a production company shall demonstrate that:
(a) the production company made the expenditure;
(b) the expenditure occurred in Montana;
(c) the expenditure was not made for goods and services obtained outside Montana; and
(d) the expenditure was directly tied to the state certified production.
(3) Qualified expenditures may include compensation paid to persons for contract labor, as a loan out, or extras that may be reported on a federal Form 1099-MISC, so long as the compensation otherwise meets the criteria listed in 15-31-903, MCA. With respect to loan outs, the following conditions must also be satisfied:
(a) The loan out, whether a limited liability company, corporation, S corporation, or partnership must be incorporated or organized under the laws of Montana; and
(b) The individual who owns/operates the loan out must be a Montana resident.
(4) Qualified expenditures may not include payments made for payroll taxes. However, payments made for mandatory insurance coverage may qualify to the extent the payment occurred in Montana and was directly tied to a state certified production.
(5) Qualified expenditures may include reimbursed expenses to the extent the original expenditure met the conditions under (2)(b), (c), and (d). The expenditure must:
(a) have occurred in Montana;
(b) was not made for goods and services obtained outside Montana; and
(c) was directly tied to the state certified production.
(6) Unsubstantiated per diem allowances, for example, $20 per day to cover gas or other incidentals, paid to employees, contract labor, or extras while working in Montana, are considered to be qualified expenditures.
(7) The credit may not be claimed unless the production company certifies, in writing, that each vendor in Montana has been paid in full for all goods and services purchased in connection with the production.