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Montana

Montana

Incentives/Policies for Renewables & Efficiency

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Alternative Energy Investment Tax Credit (Corporate)   

Last DSIRE Review: 07/16/2013
Program Overview:
State: Montana
Incentive Type: Corporate Tax Credit
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Small Hydroelectric, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Industrial
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 forward 7 years. See below for criteria to qualify for a 15-year carryover.
Start Date:1/1/2002
Expiration Date:None
Web Site: http://www.deq.mt.gov/Energy/renewable/taxincentrenew.mcpx#15-32-...
Authority 1:
Date Enacted:
Date Effective:
Expiration Date:
MCA ยง 15-32-401 et seq.
5/5/2001
1/1/2002
None
Summary:

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:

  • A manufacturing plant that is located in Montana and that produces alternative energy generating equipment;
  • A new business facility or the expanded portion of an existing business facility that supplies basic energy needed from the alternative energy generating equipment, on a direct contract sales basis; or
  • The alternative energy generating equipment itself.

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.


 
Contact:
  Information Specialist - MT Dept. of Rev.
Montana Department of Revenue
P.O. Box 5805
Helena, MT 59604-5805
Phone: (406) 444-6900
Web Site: http://mt.gov/revenue/
 
  Kathi Montgomery
Montana Department of Environmental Quality
Energy Planning & Renewable Energy
1520 East Sixth Ave.
PO Box 200901
Helena, MT 59620
Phone: (406) 444-6586
Fax: (406) 444-6836
E-Mail: kmontgomery@mt.gov
Web Site: http://deq.mt.gov/energy/default.mcpx
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.