(1) A resident or a nonresident taxpayer is allowed a credit against the taxpayer's Montana income tax liability for public contractor's gross receipts tax paid pursuant to the provisions of 15-50-205 and 15-50-206, MCA. The credit is allowed with respect to the taxpayer's Montana income tax liability determined for the taxable year in which the net income from contracts subject to the gross receipts tax is reported. If the taxpayer reports income from contracts on a percentage of completion basis, the credit must be allocated accordingly. The amount of credit allowable is the net public contractor's gross receipts tax (after personal property tax credit) actually imposed and paid by the taxpayer but not in excess of the taxpayer's Montana income tax liability. Any excess credit may be carried forward for up to five taxable periods.

(2) In the event the public contractor's gross receipts tax is paid by a partnership, S corporation, limited liability company, or limited liability partnership, the members, partners, or shareholders are entitled to the credit for the tax as the respective interests appears.