Line 16 – Historic Property Preservation Credit
You can claim a credit against your income tax liability for your own qualified rehabilitation expenditures. The allowable Montana credit is 25% of the federal rehabilitation credit provided for in IRC Section 47(a)(2). The credit may not be allocated between spouses unless the property is used by a small business corporation or a partnership in which they are shareholders or partners. When you claim this credit, you will have to include a copy of your federal Form 3468 with your tax return. If the federal credit was transferred to you, the owner who transferred it, not you, has to claim the Montana credit.
Please note: The credit previously allowed for creating a conservation easement, which was an alternative to the credit described above, expired on December 31, 2011. Therefore, no credit can be claimed for a conservation easement created after 2011. Unused amounts from a credit for an easement claimed prior to January 1, 2012 can be carried forward up to six years after the easement was created.