Alternative Energy Investment Tax Credit (Corporate) (Montana)

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place	Montana
Name	Alternative Energy Investment Tax Credit (Corporate)
Incentive Type	Corporate 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
Active Incentive	Yes
Implementing Sector	State/Territory
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 forward 7 years. See below for criteria to qualify for a 15-year carryover.
Eligible System Size	Not specified.
Equipment Requirements	System must be new and in compliance with all applicable performance and safety standards.
Start Date	2002-01-01
Expiration Date	None The date "None" was not understood.
Maximum Incentive	Not specified.
Program Administrator	Montana Department of Revenue
Website	http://www.deq.mt.gov/Energy/renewable/taxincentrenew.mcpx#15-32-401
References	DSIREDatabase of State Incentives for Renewables and Efficiency

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.

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.

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	Kathi Montgomery
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
Phone	(406) 444-6586
Email	kmontgomery@mt.gov
Website	http://deq.mt.gov/energy/default.mcpx

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.