Corporate Property Tax Reduction for New/Expanded Generating Facilities (Montana)

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Summary

Last modified on December 17, 2014.

Financial Incentive Program

Place Montana

Name Corporate Property Tax Reduction for New/Expanded Generating Facilities
Incentive Type Property Tax Incentive
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 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



Expiration Date none


















Website http://www.deq.mt.gov/Energy/renewable/taxincentrenew.mcpx#15-24-1401
Date added to DSIRE 2003-10-01
Last DSIRE Review 2014-10-22



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


Summary

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 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


Email DORCustomerAssistance@mt.gov
Website https://revenue.mt.gov/
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


Email gmartin@mt.gov
Website http://deq.mt.gov/energy/default.mcpx
     

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

Authority 1: MCA § 15-24-1401 et seq

Date Enacted 1981



















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

References

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