Corporate Income Tax Credit for Alternative Fuel Motor Vehicle Conversion

Summary

An individual or business is allowed a state income tax credit for equipment and labor costs incurred to convert a motor vehicle licensed in Montana to operate on alternative fuel. The maximum credit that may be claimed in a year is up to 50% of the equipment and labor costs incurred but no more than $500 for conversion of a vehicle with a gross weight of 10,000 pounds or less or $1,000 for heavier vehicles. "Alternative fuel" means natural gas, liquefied petroleum gas, liquefied natural gas, hydrogen, electricity or any other fuel if at least 85% of the fuel is methanol, ethanol or other alcohol, ether, or any combination of them. The credit allowed under this section may not exceed the taxpayer's income tax liability and there is no carryback or carryforward of the credit. Use Department of Revenue form AFCR to claim this exemption.