Alternative Energy Investment Tax Credit (Montana)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Montana

Name Alternative Energy Investment Tax Credit
Incentive Type Industry Recruitment/Support
Applicable Sector Commercial, Industrial
Eligible Technologies Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Small Hydroelectric, Fuel Cells using Renewable Fuels
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 35% tax credit

Start Date 2002-01-01
Expiration Date None

Maximum Incentive Not specified.

Terms Participant investment must be greater than or equal to 5,000. Unused credit may be carried forward 7 years. See below for criteria to qualify for a 15-year carryover.
Program Administrator Montana Department of Revenue
Date added to DSIRE 2001-07-29
Last DSIRE Review 2014-10-23

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


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.

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 Contact

Contact Name Information Specialist - MT Dept. of Rev.
Department Montana Department of Revenue

Address P.O. Box 5805

Place Helena, Montana
Zip/Postal Code 59604-5805
Phone (406) 444-6900

Contact Name Garrett Martin
Department Montana Department of Environmental Quality
Division Energy Planning & Renewable Energy
Address 1520 East Sixth Ave
Address 2 PO Box 200901
Place Helena, Montana
Zip/Postal Code 59620-0901
Phone (406) 444-6582


Authorities (Please contact the if there are any file problems.)

Authority 1: MCA § 15-32-401 et seq.
Date Effective 2002-01-01
Date Enacted 2001-05-05
Expiration Date None

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"