Alternative Energy Investment Tax Credit (Personal) (Montana)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Alternative Energy Investment Tax Credit (Personal)|
|Incentive Type||Personal Tax Credit|
|Applicable Sector||Commercial, Industrial|
|Eligible Technologies||Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Small Hydroelectric, Fuel Cells using Renewable Fuels|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||35%; participant investment must be greater than or equal to 5,000.|
|Carryover Provisions||Unused credit may be carried over for 7 years. See below for criteria to qualify for a 15-year carryover.|
|Eligible System Size||No size restrictions specified.|
|Equipment Requirements||System must be new and in compliance with all applicable performance and safety standards.|
|Maximum Incentive||Not specified.|
|Program Administrator||Montana Department of Revenue|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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 Name||Information Specialist - MT Dept. of Rev.|
|Department||Montana Department of Revenue|
|Address||P.O. Box 5805|
|Contact Name||Kathi Montgomery|
|Department||Montana Department of Environmental Quality|
|Division||Energy Planning & Renewable Energy|
|Address||1520 East Sixth Ave.|
|Address 2||PO Box 200901|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||MCA § 15-32-401 et seq.|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.