Commercial and net metering alternative energy investments of $5,000 or more are eligible for a tax credit of up to 35% against individual or corporate tax on income generated by the investment. The investment must be depreciable. The credit is applied only against taxes due as a consequence of taxable or net income produced by:
This credit is available to taxpayers purchasing an existing facility as well as to those building a new facility. While net metered systems are eligible, the tax credit is only for any income generated by the system.
A "net metering system" means a facility for the production of electrical energy that:
(a) uses solar, wind, or hydropower for fuel;
(b) has a generating capacity of 50 kilowatts or less;
(c) is located on the customer-generator's premises;
(d) operates in parallel with the utility's distribution facilities; and
(e) is intended primarily to offset part or all of the customer-generator's requirements for electricity.
The tax 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 7 years. If a project sized 5 megawatts (MW) or larger is installed on an Indian reservation in Montana, a credit may be extended through the 15th tax year succeeding the tax year of installation, provided that the installation meets other specified criteria.
Taxpayers may not take this credit in conjunction with any other state energy or state investment tax benefits, or with the property tax exemption for non-fossil energy property.
|Incentive Type:||Personal Tax Credit|
|Administrator:||Montana Department of Revenue|
|Eligible Renewable/Other Technologies:||
|Incentive Amount:||35%; participant investment must be greater than or equal to $5,000.|
|Maximum Incentive:||Not specified.|
|Eligible System Size:||Not specified.|
|Equipment Requirements:||System must be new and in compliance with all applicable performance and safety standards.|
|Carryover Provisions:||Unused credit may be carried over for 7 years. See below for criteria to qualify for a 15-year carryover.|
|Technologies:||Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Landfill Gas, Wind (Small), Hydroelectric (Small), Fuel Cells using Renewable Fuels|
|Parameters:||The incentive is 35.00 %|
|Name:||MCA § 15-32-401 et seq.|
|Name:||Information Specialist - MT Dept. of Rev.|
|Organization:||Montana Department of Revenue|
P.O. Box 8018
Helena MT 59604-5805
1520 East Sixth Ave.
Helena MT 59620
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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