MT Incentives | Finance, Loans, IRB, Workforce Development

A comprehensive list of Montana financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.


https://businessfacilities.com/2015/01/mt-incentives-and-workforce-development-guide/
A comprehensive list of Montana financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.
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Montana Incentives and Workforce Development Guide

MT Incentives | Finance, Loans, IRB, Workforce Development

For a list of Montana economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

 

FINANCING

Big Sky Economic Development Trust Fund Grant Program: Created by the 2005 Montana Legislature, this state funded grant program provides funds assistance for expanding the economy and creating new jobs. This program provides two types of funding:

  1. Job Creation: Grant or loan funding to local or tribal governments to assist basic sector businesses with the reimbursement of eligible expenses associated with its expansion and creation of net new jobs. Examples of eligible expenses include purchase of land or buildings, lease rate reduction, equipment purchases or wages of the net new jobs. Reimbursement is based on the number of net new, BSTF eligible jobs created and associated expenses. Businesses may receive up to $5,000 for each eligible net new job created or up to $7,500 for each eligible net new job created in a high-poverty county. Eligible businesses must meet the definition of a Basic Sector Business, and eligible jobs must meet program requirements for hours worked and pay thresholds.
  2. Planning: Provides grant funding to eligible economic development organizations to assist businesses and/or other entities that have a need to hire outside consults for planning activities that will help to expand the economy and/or create jobs. Examples include feasibility studies, Preliminary Engineering or Architectural Reports.

Please see the program website for additional information: marketmt.com/BSTF.

Big Sky Film Grant: The Montana Big Sky Film Grant was created to build partnerships with filmmakers and production companies by providing funding to enable the creation of jobs related to filmmaking production; to enhance the marketing of Montana’s tourism regions, people, history, and overall quality of life; and to support Montana’s filmmaking community. Filmmakers and production companies can apply to the Montana Department of Commerce Film Office. For more information please see the Big Sky Film Grant section of montanafilm.com.

Certified Regional Development Corporations: Provides revolving loan funds to businesses in their regions. There are 11 Certified Regional Development Corporations in Montana that provide financing, technical assistance, training, application assistance, and other services to the communities in their counties. The Montana Department of Commerce provides financial support to these corporations to facilitate economic development across Montana. Revolving loan funds are designed to assist new and/or expanding businesses create jobs. Please visit the website at marketmt.com/Programs/CRDC/CRDCs

Community Development Block Grant (CDBG) – Economic Development Program: Montana’s CDBG Economic Development program is designed to stimulate economic development activity by assisting Montana’s private sector to create or retain jobs for low- to moderate-income (LMI) Montanans, i.e. individuals earning less than 80% of the area median income. The program can assist businesses by making fixed-rate financing available to them at low interest rates, and can offer payment deferrals, lower payments in the first year, and interest-only payments. CDBG-ED funds are intended to be used in situations where a funding gap exists and alternative sources of public and private financing are not adequate.

More specific information is found on the Community Development Division website at comdev.mt.gov/Programs/CDBG; however, a brief summary of activities is provided below:

  • Planning Grants: Eligible planning activities include, but are not limited to, economic or business development plans, including community needs assessments, downtown revitalization studies, feasibility studies, Preliminary Architectural Reports, and Preliminary Engineering Reports.
  • Economic Development Projects: Local governments may apply for funding that will create or retain jobs for projects that increase business opportunities or maintain business operations. Funding may be used for working capital, equipment purchases, infrastructure improvements, constructions costs, job training, or other eligible business expenses. Applicants must submit documentation to demonstrate historical and current financial details, business planning, hiring plans, and other information to meet program eligibility.

Indian Country Economic Development Program: The Indian Country Economic Development Program is a state funded program to provide economic development funding to the eight tribal governments and communities in Montana to address their economic development needs. Funding is available in the following categories:

  • Native American Business Advisors (NABA): A total of $120,000 is available to fund eight NABA applications ($15,0000 per award) in each of the tribal nation areas. The grant is to support the activities of Native American community-based organizations, tribal colleges, and tribal government organizations that support private sector business development on reservations and in tribal communities. These entities offer business and credit counseling and application support to Native American businesses in Montana.
  • Indian Equity Fund (IEF) Small Business Grant: Assists start-up or expanding Native American businesses in Montana. The funds can be used for a variety of activities such as the purchase of new equipment or the development of a new product line. A total of $320,000 is available to fund Native American business applications in each of the eight tribal nation areas with a total of $14,000 maximum award per approved application. Enrolled members of Montana¹s federally recognized tribes in Montana and enrolled members of the Little Shell Tribe residing in Montana are eligible applicants.
  • Tribal Business Planning Grants: Assists tribal governments in deploying comprehensive business planning strategies and activities. The governing bodies of each of Montana’s eight tribal governments are eligible applicants and can apply for up to $28,000 for a total of $224,000 in grant funds. Eligible activities include business plan development, market analysis, feasibility study, physical business infrastructure planning, legal and financial infrastructure development, matching funds for the State Tribal Economic Development (STED) Commission Indian Equity Fund.

More information can be found on the website at marketmt.com/ICP.

Intermediary Relending Program: U.S. Department of Agriculture (USDA) Rural Development offers the Intermediary Relending Program. This program allows intermediaries to borrow up to $2 million under its first financing and up to $1 million at a time thereafter. Total aggregate debt is capped at $15 million. The maximum loan amount in years past was $750,000. Eligible projects include acquisition, construction, purchase or development of land, equipment, working capital, and feasibility studies. Here is the Intermediary Relending Program (IRP) information at the USDA website. For a list of Montana IRP lenders, see this website.

Microbusiness Development Corporations: The Montana Department of Commerce certifies Microbusiness Development Corporations around the state that can provide loan financing to microbusinesses. Loans can be made for up to $100,000 to qualified Montana microbusinesses. A qualified microbusiness has fewer than 10 full-time equivalent employees and gross annual revenue of less than $1 million. Microbusiness Development Corporations can provide capital to businesses in addition to training and technical assistance. To see the map of Microbusiness Development Corporations in your area and further information on this program, see the website at marketmt.com/MBFP/MBDCs.

Montana Board of Investments Programs ­ In-State Loan Programs: The objective of the Board’s In-State Loan Programs is to diversify, strengthen, and stabilize the Montana economy. The Board has designed a series of loan programs that can be tailored to meet the individual needs of borrowers. The Board is only able to participate in loans to businesses and individuals through commercial financial institutions and is willing to work with businesses to assist in developing a loan package to best meet business needs. In-State Loan Programs include the Business Loan Participation Program, the Link Deposit Business Loan Program, the Value-Added Business Loan Program, the Infrastructure Loan Program, and the Intermediary Relending Loan Program. All are funded from the Permanent Coal Tax Trust. For general requirements for these programs, or to view/download application forms, visit https://investmentmt.com/LoanPrograms

Trade Show Assistance Program: Grants for exhibiting at domestic trade shows. Website: https://marketmt.com/Export

State Trade Expansion Program (STEP): Exporting could be the right next move for your business, and our STEP grant can help. The Montana STEP grant, funded in part by a grant from the U.S. Small Business Administration, helps new and experienced exporters with expanding in to new international markets. Exporters can get a 50% reimbursement of the cost of international marketing activities to help offset the risk of trying out new markets or new tactics.

Eligible Program Activities:

  1. International Trade Show Exhibition– up to $10,000 reimbursement + up to $2,000 travel stipend
    2. Language Translation Services & Production Fees – up to $3,000 reimbursement
    3. U.S. Commercial Service Programs – up to $5,000 reimbursement + up to $2,000 travel stipend
    4. International Compliance Testing – up to $3,000 reimbursement
    5. Montana Online Global Program – up to $3,000 reimbursement
    6. International Travel Stipend – up to $2,000 reimbursement

Web address: https://marketmt.com/STEP

Montana SBIR/STTR Matching Fund Program: The purpose of Montana SBIR/STTR Matching Funds Program is to foster job creation and economic development in the state by providing matching funds to eligible businesses meeting the criteria set forth in the guidelines. It is designed to grant funds to Montana companies that have been awarded a Small Business Innovation Research Program or Small Business Technology Transfer Program Phase I award and that, if the opportunity to do so is available, intend to apply for a federal SBIR/STTR Phase II award. The Federal SBIR/STTR Program provides for funding competitions in two phases that are relevant to the Montana program:

  • Stage I ­ to conduct feasibility research
  • Stage II ­ to expand and develop Phase I results and develop commercially viable innovations

For information on the guidelines for this program, see the website at marketmt.com/MSMFP.

Montana Wood Products Revolving Loan Fund: A state and federally funded program with two funding pools available to assist wood and timber related businesses, the EDA Wood Products Revolving Loan Fund and the State Wood Products Revolving Loan Fund. Eligible businesses may apply for up to $20,000 per job created or retained. Businesses are required to make a matching financial contribution to their proposals. Funds are available depending on the amount of loan repayments received each year. See website at: marketmt.com/WPRLF

The Native American Collateral Support (NACS) Program: NACS addresses the lack of access to capital for Native American-owned businesses by providing collateral support security for lenders making loans with Native American-owned businesses that only lack in sufficient collateral/equity for a business loan according to their loan risk profiles. (All other aspects of the credit analysis are satisfactory: cash flow, climate, character, and credit-worthiness). A total loan pool of $500,000 is available for lenders to access for their borrowers. More information can be found at marketmt.com/nacs.

Montana Innovation Partnership (MTIP): The Montana Innovation Partnership powered by Montana State University TechLink promotes technology-based economic development in the state through education and expert technical assistance for SBIR/STTR proposals.   Website: https://montanainnovationpartnership.org/

Tourism Grant Program: The Montana Office of Tourism and Business Development¹s Tourism Grant Program awards funds to projects that strengthen Montana’s economy through the development and enhancement of the state¹s tourism industry. The Tourism Grant Program offers funding in three categories:

  1. Tourism Digital Development – Eligible projects include, but are not limited to:
    • Website development or enhancement
    • Responsive website design
    • Strategic collaborative marketing initiatives that build off the Montana Brand
  2. Tourism Infrastructure – Eligible projects include, but are not limited to:
    • Project “brick & mortar” costs associated with remodeling old or preserving existing tourism and recreation attractions, historical sites and artifacts
    • Visitor way-finding signage production or installation
  3. Tourism Event Paid Media Advertising – Eligible projects include, but are not limited to:
    • National magazine advertising
    • National digital advertising

For more information on the Tourism Grant Program, please visit marketmt.com/grants.

Alternative Energy Revolving Loan Program: The Montana Department of Environmental Quality offers the Alternative Energy Revolving Loan Program. This program provides a financing option to Montana homeowners, small businesses, non-profits, and government entities to install alternative energy systems. The program has traditionally been funded by air quality penalties collected by the Department of Environmental Quality. Energy from these renewable systems is intended for use by the owner—although net-metering is allowed for systems that generate electricity. Energy conservation measures installed in conjunction with an alternative energy project may be funded through the program, limited to 20% of the loan amount. Learn more about the Alternative Energy Revolving Loan Program.

 Master Loan Program: The Master Loan Program enables qualified borrowers to access the tax-exempt capital markets at investment grade interest rates. Documents are standardized and bonds can be marketed for more than one borrower at a time, reducing the costs of issuance for each.

Program Structure

  • Loans tailored to meet the Borrower’s current and future capital financing needs
  • Credit support provided by the Montana Board of Investments results in a lower interest rate
  • Terms of up to 20 years
  • Bonds marketed for a single borrower or a group of borrowers with each borrower responsible only for its own series of bonds
  • Capitalized interest funding is available during the construction period

https://mtfacilityfinance.com/Programs/MasterLoan

Montana Capital Assistance Program: The purpose of the Montana Capital Assistance Program (“MCAP”) is to assist Critical Access Hospitals (CAH), small rural hospitals (those with less than 50 beds), or other eligible health care facilities with the development of a Capital Improvement Plan (CIP) to assess the feasibility of proposed capital expenditures. The Montana Facility Finance Authority provides funding for this program which is administered by the Montana Health Research and Education Foundation, the 501 (c)(3) organization of MHA, an Association of Montana Health Care Providers.

MCAP services available through the Foundation are designed to assist a facility in developing a CIP for presentation to various lenders, including the Authority, for financing. The Authority has financing programs tailored for specific facilities based upon their creditworthiness and the nature of their capital improvements. https://mtfacilityfinance.com/Programs/MTCapitalAssistance

 

TAX INCENTIVES

The State of Montana, local development organizations, and local governments may assist with tax credits, abatements, and exemptions. These incentives include the following types:

Class 17 Property tax classification for qualifying data centers:  25,000 square feet of new or expanded area, where the total cost of land, improvements, personal property, and software is at least $50 million invested during a 48-month period with construction commencing after January 1, 2019. https://marketmt.com/RIS/DataCenters

Data Center Tax Incentive : Developers of qualified data centers in Montana may qualify for a tax incentive. The project must be 300,000 square feet or larger and have a total investment of $150 million. Developers may qualify for a reduced tax rate for a 15-year period. This incentive is meant to augment Montana’s already attractive data center attributes, including a skilled workforce, low operating and utility costs, and established data infrastructure. Click here for more.

Alternative Energy Investment Tax Credit: Commercial and net metering alternative energy investments of $5,000 or more are eligible for up to 35% tax credit against individual or corporate tax on income generated by the investment. The credit may only be taken against net income produced by the eligible equipment or by certain associated business activities. Associated facilities, manufacturing plants producing alternative energy equipment, and new or expanded businesses using the energy generated by the alternative energy investment may use the tax credit. The credit must be taken the year the equipment is placed in service; however, any portion of the tax credit that exceeds the amount of tax to be paid may be carried over and applied against state tax liability for the following seven years. A project of 5 MWs or larger on a reservation may carry the credit over for 15 years if it has an employment agreement with the tribal government.

Alternative Fuels Property Tax Exemption: Provides an exemption from property assessment for qualifying non-fossil fuel energy generating systems installed. The maximum exemption amount per year is $100,000 for a commercial property. The value of the qualifying non-fossil fuel energy generating system must be included in the assessed value of the property prior to its exemption. The exemption lasts for a period not to exceed 10 years from the year of installation.

Clean Energy Abatements:  Major property tax abatements were created in 2007 available for the following facilities:

  • Electrical transmission lines that move renewable or other qualifying clean power as well as the land under transmission lines
  • Renewable energy manufacturing plant and equipment
  • Clean energy research and development equipment
  • Plants producing liquid fuels, synthetic gas and electricity such as cellulosic ethanol or coal gasification with carbon sequestration
  • Pipelines and equipment for carrying CO2 for sequestration, dedicated pipelines for ethanol, biodiesel and liquid fuel from clean coal technology with carbon sequestration

MEDIA Act: The Montana Economic Development Industry Advancement (MEDIA) Act, a tax credit for film productions in Montana, was signed into law by Governor Steve Bullock on May 7, 2019, it becomes effective July 1, 2019. The MEDIA Act provides for a 20% production expenditure transferable tax credit, with additional components that can increase the credit to a maximum of 35% of total base film production investment. https://www.montanafilm.com/incentive-packages/media-act/

New Market Tax Credits: Can help communities attract capital to good projects on favorable terms. The program provides an incentive to debt and equity investors in the form of a 39% federal income tax credit for investing capital into qualified projects in eligible low-income areas. Eligible investment types include most real estate projects and operating businesses (with some exceptions). Total project size of at least $3 million, project in a designated low-income census tract with either a poverty rate of 20% or greater or Gross Median Income of 80% of less of the state average, strong economic development and/or community impact, such as helping to create or retain jobs; acting as the catalyst for larger development, infusing sources of new investment capital into an under-served, low-income area; and creating new access to community services such as education, healthcare, child & elder care and retail services.

New or Expanding Industry Wage Credit: A new or expanding manufacturing corporation in Montana may receive a corporation license tax credit of 1% of wages paid to new employees for the first three years of operation and expenses.

Property Tax Abatements: Property tax abatement is available to certain new or expanding businesses. The governing body of the affected county or the incorporated city or town must approve, by resolution, the abatement. The tax benefit received is a percentage multiplier applied to the increase in taxable value of the qualifying improvements or modernized processes. The tax benefit applies to the number of mills levied and assessed for high school district and elementary school district purposes and to the number of mills levied and assessed by the local governing body approving the benefit. New/expanding industries will be taxed at 50% of taxable value for the first five years after a construction permit is issued. The tax rate is raised incrementally over the next five years to 100%.

 

WORKFORCE DEVELOPMENT

Incumbent Workforce Training Grant Program: The Montana Department of Labor and Industry¹s Incumbent Workforce Training Grant Program is available to businesses with no more than 50 employees in the state. Training is available to employees who have been employed at least six months, with up to $2,000 available for full-time employees and $1,000 for part-time employees. Businesses must be able to contribute matching funds. Training grant dollars may be used for approved training, travel, or instructional materials.

Primary Sector Workforce Training Program: The Montana Department of Commerce manages a state funded workforce training program. Eligible businesses must meet the definition of a Primary Sector Business and provide a financial match. Businesses may apply for up to $5,000 per net new full-time job created for documented training expenses. Businesses must meet minimums for number of hours worked and thresholds for employee compensation. Businesses can apply directly to the Montana Department of Commerce for this program. For more information on this program, please see the website at marketmt.com/WTG.

Montana Registered Apprentice Program: Registered apprenticeships are a highly customizable, earn-while-you-learn training program that increases retention and provides a career pathway to higher wages. Currently, more than 90 different occupations are available across Montana in a variety of industries that are helping businesses effectively build a highly skilled workforce. Click here for more.

Apprenticeship Tax Credit: Beginning in the 2018 tax year, businesses can receive a $750 tax credit for each new apprentice or $1,500 for each new apprentice who is a veteran. The credit may be applied for each qualified apprentice’s training program for the length of the training period, up to five years. Click here for more.

Loan Participation Program: The Montana Board of Investments can purchase up to 80% of your commercial loan, and rates can be reduced by .05% for each job created with a maximum reduction of 2.5% (for 50 new jobs). Click here for more.

Value-Added Business Loan Program: The Montana Board of Investments can purchase a percentage of your commercial loan (up to 75% for this program) with terms of up to 15 years. Depending on the number of jobs associated with your project, you could receive a 2% interest rate for the first five years of the loan. Click here for more.

Corporate Income Tax Credits

For more information about the following credits, click here.

  • Alternative Energy Production Credit
  • Alternative Fuel Credit
  • Biodiesel/Bio Lubricant Production Facilities Credit
  • Biodiesel Blending and Storage Credit
  • Capital Gains and Dividends from Small Business Investment Company Tax Exemption
  • College Contribution Credit
  • Contractor’s Gross Receipts Tax Credit
  • Dependent Care Assistance Credit
  • Disability Insurance for Uninsured Montanans Credit
  • Donation of Exploration Information Deduction
  • Empowerment Zone Tax Credit
  • Energy Conservation Investments Deduction
  • Film Employment Production Credit
  • Film Qualified Expenditures Credit
  • Geothermal System Credit
  • Historic Buildings Preservation Credit
  • Increase Research and Development Activities Credit
  • Infrastructure User Fee Credit
  • Insure Montana Small Business Health Insurance Credit
  • Mineral and Coal Exploration Incentive Credit
  • New/Expanded Industry Credit
  • Oilseed Crushing Facility Credit
  • Qualified Endowment Credit
  • Recycle Credit
  • Recycle Deduction
  • Research and Development Firms Tax Exemption
  • Temporary Emergency Lodging Credit
  • Unlocking State Lands Credit

 

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