Montana generating plants producing one megawatt (MW) or more with an alternative renewable energy source are eligible for the new or expanded industry property tax reduction. This incentive reduces the local mill levy during the first nine years of operation, subject to approval by the local government. If approved, the facility is taxed at 50% of its taxable value in the first five years following the issuance of the construction permit. Each year thereafter, the tax reduction decreases and the taxable value percentage is increased in equal increments until the full taxable value is attained in the tenth year. The tax reduction applies only to taxes levied for the local high schools and elementary schools and for the local government offering the reduction.
The taxable value varies, depending on the property ownership. If owned by a utility, an exempt wholesale generator or certain other electricity producers, the property is class 13 property and would otherwise be taxed at 6% of assessed value. If owned by an electric cooperative, the property is class 5 and would otherwise be taxed at 3% of assessed value. Certain electric cooperatives fall under class 7 or class 9 and property owned by those cooperatives is taxed at 8% of assessed value and 12% of assessed value, respectively. If owned by any other business, the real property is class 4 and would otherwise be taxed at 2.47% of assessed value. Personal property is class 8 with a tax rate of up to 3% of assessed value. The assessed value of class 4 property is adjusted every six years, and the assessed value of the other classes is adjusted yearly.
|Incentive Type:||Property Tax Incentive|
|Eligible Renewable/Other Technologies:||
|Incentive Amount:||Taxable value reduced by 50% for 5 years; reduction in taxable value declines each year thereafter until there is no reduction in tenth year.|
|Eligible System Size:||Minimum size: 1 MW|
|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 50.00 %, The incentive has a minimum of 5.00 Years|
|Name:||MCA § 15-24-1401 et seq|
|Name:||Information Specialist - MT Dept. of Rev.|
|Organization:||Montana Department of Revenue|
P.O. Box 8018
Helena MT 59604-5805
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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