The Montana R&D tax credit, explained
Montana does not have a state R&D tax credit today. Its old credit stopped generating new value after 2010 and was repealed in 2019.
Last verified July 2026 against Montana Department of Revenue guidance.
The short answer
No, Montana does not have a state R&D tax credit today. Montana used to offer a research credit under a since repealed statute, but the law stopped allowing new claims after December 31, 2010, and the credit was formally removed from the Montana Code in 2019.
Where that leaves Montana startups
That does not affect the federal R&D credit, which Montana companies can still claim in full. The federal credit is worth roughly 6% to 10% of qualified research spend, and it applies the same way in Montana as anywhere else in the country.
How it stacks with the federal credit
Without a state credit, the full value of R&D tax savings for a Montana company comes from the federal credit. Startups under $5 million in revenue can apply that credit against up to $500,000 a year in payroll taxes, even with no income tax liability yet, which matters most for early stage Montana companies that are not yet profitable.
There is no state credit to stack on top of the federal number in Montana, so the math is simpler: one credit, one calculation, applied against federal tax or federal payroll tax.
Example: a Montana engineering firm with 6 employees and an average salary of $90,000 spends about $540,000 a year on qualified research. At roughly 7% of that spend, the federal credit comes to about $37,800. If the company is a pre-revenue startup under $5 million in revenue, it can apply that credit dollar for dollar against its payroll taxes instead of waiting for income tax liability.
Takes about 60 seconds. No signup.
Claiming the federal credit instead
Since Montana has no state credit, there is no state form or state agency application involved for R&D purposes. Montana companies claim only the federal credit, using the same four part test that applies nationwide: the work must be technological, aimed at eliminating uncertainty, involve a process of experimentation, and support a new or improved business component.
The federal credit is claimed on federal Form 6765 and filed with the company's federal tax return. Claimship preps the federal research study and the Form 6765 package. The company's CPA files the federal return.
Official source: Montana Department of Revenue.
Carryforward and deadlines
There is no Montana R&D credit deadline or application to track, since the credit no longer exists. Companies only need to follow the federal filing deadline for Form 6765, which is filed with the federal tax return.