Solar & Battery Regulation & Incentive Programs

Alternative Energy Investment Tax Credit

Program Overview


Category:
Financial Incentive
Program Type:
Industry Recruitment/Support
Implementing Sector:
State
State:
Montana
Eligible Storage Technologies:
Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Landfill Gas, Wind (Small), Hydroelectric (Small), Fuel Cells using Renewable Fuels
Website:
http://deq.mt.gov/Energy/EnergizeMT/Renewable/TaxIncentRenew
Incentive Amount:
35% tax credit
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.
Administrator:
Montana Department of Revenue
Applicable Sectors:
Commercial, Industrial
Start Date:
01/01/2002
Last Updated:
10/27/2016

Eligibility Criteria

EligibilitySectorsTechnologies
%35.0000
Commercial
Industrial
Geothermal Electric
Solar Thermal Electric
Solar Photovoltaics
Wind (All)
Biomass
Landfill Gas
Renewable Energy
Wind (Small)
Hydroelectric (Small)
Fuel Cells using Renewable Fuels

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.

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 a tribal 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.


Authorities

NameEnacted DateEffective DateExpired Date
MCA § 15-32-401 et seq.5/5/20011/1/2002None