Property Tax Abatement for Production and Manufacturing Facilities (Montana)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Montana

Name Property Tax Abatement for Production and Manufacturing Facilities
Incentive Type Industry Recruitment/Support
Applicable Sector Commercial, Industrial, Manufacturers
Eligible Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Municipal Solid Waste, CHP/Cogeneration, Hydrogen, Solar Pool Heating, Anaerobic Digestion, Fuel Cells using Renewable Fuels
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 50% tax abatement







Start Date 2007-05-25


















Program Administrator Montana Department of Revenue
Website http://deq.mt.gov/Energy/PropertyTaxIncentives.mcpx
Date added to DSIRE 2007-06-01
Last DSIRE Review 2014-10-21



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


Summary

In May 2007, Montana enacted legislation (H.B. 3) that allows a property tax abatement for new renewable energy production facilities, new renewable energy manufacturing facilities, and renewable energy research and development equipment. Eligible facilities and equipment are assessed at 50% of their taxable value.

Qualifying renewable energy manufacturing facilities are those that (1) produce materials, components or systems to convert solar, wind, geothermal, biomass, biogas or waste heat resources into useful energy, and (2) whose annual production of renewable energy equipment makes up at least half of the facility's total production. Fuel cells and components of fuel cells that generate energy using non-fossil fuels are also eligible. Qualifying renewable energy production facilities include biomass gasification, biomass, biogas and geothermal facilities. Qualifying renewable energy research and development equipment is considered to be equipment used primarily for research and development of the efficient use of renewable energy sources.

Under this policy, these facilities are assessed at 50% of their taxable value* for the construction period and the first 15 years after the facility commences operation, not to exceed 19 years. To qualify for the tax abatement, facilities must begin construction after June 1, 2007. Additionally, all renewable energy research and development equipment up to $1 million in value may qualify for a 50% property tax abatement if it is placed into service after June 30, 2007. The portion of the equipment used for renewable energy research and development in excess of $1 million in value does not qualify for the abatement. All production facilities, manufacturing facilities, and research and development equipment must be approved by the Montana Department of Environmental Quality in order to qualify for the abatement.

For the purposes of this policy, "renewable energy" is defined as energy from solar, wind, geothermal, biomass, biogas, non petroleum-based fuel cells, and waste heat sources. "Biomass" means any renewable organic matter, including dedicated energy crops and trees, agricultural food and feed crops, agricultural crop wastes and residues, wood wastes and residues, aquatic plants, animal wastes, municipal wastes, and other organic waste materials.

*These types of facilities are categorized as “Class 14” property, which is taxed at 3% of the property’s market value. A facility that qualifies for the 50% property tax abatement is therefore subject to property tax equal to 1.5% of the property’s market value.


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 § 15-24-3111
Date Effective 2007-05-25
Date Enacted 2007-05-25


Authority 2: MCA § 15-6-157
Date Effective 2007-05-25
Date Enacted 2007-05-25


Authority 3: ARM 17.80.201 and 17.80.202
Date Effective 2008-05-23
Date Enacted 03/2008

















  • 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"