Clean and Green Property Tax Incentives (Montana)

From Open Energy Information

Last modified on February 12, 2015.

EZFeed Policy

Place Montana

Applies to States or Provinces Montana
Name Clean and Green Property Tax Incentives
Policy Category Financial Incentive
Policy Type Property Tax Incentive
Affected Technologies Biomass/Biogas, Coal with CCS, Concentrating Solar Power, Energy Storage, Fuel Cells, Geothermal Electric, Hydroelectric, Hydroelectric (Small), Natural Gas, Nuclear, Solar Photovoltaics, Wind energy
Active Policy Yes
Implementing Sector State/Province

Start Date 2007

Program Administrator Montana Department of Environmental Quality
Primary Website

Last Review 2014-09-15
Last Substantive Modification
to Summary


In 2007, the Montana Legislature passed House Bill 3 (May special session) that established property tax incentives to encourage energy projects with less environmental impact than conventional facilities. The “Clean and Green” incentives come in three forms.

First, certain facilities and equipment can be classified as either Class 14 or Class 15 Property (15-6-157 and 15-6-158, MCA). These classes are taxed at 3 percent of market value; previously, these facilities may have been taxed at a higher percent of their market value. To qualify for the 3% tax rate, the standard prevailing wages for heavy construction must be paid during construction and some other qualifications may also apply.

Second, high-voltage direct-current converter stations that are constructed in a location and manner so that the station can direct power to two different regional power grids can be classified as Class 16 property. Class 16 property is taxed at 2.25 percent of market value.

Third, a subset of Class 14, 15, and 16 properties are eligible for a property tax abatement of 50 percent for up to 19 years (15-24-3101 et seq. MCA). This abatement applies to all mills levied against the qualifying facility or equipment. For qualifying clean advanced coal research and development equipment or for renewable energy research and development equipment, only the first $1 million of the value receives the abatement.

The Montana Department of Environmental Quality must certify that certain transmission lines, carbon dioxide pipelines and liquid fuel pipelines qualify as Class 14 or 15 property. The Department also certifies any facility or equipment seeking the property tax abatement. A taxpayer starts the process by filling out the appropriate application. Projects eligible for these property tax classifications and abatements are likely to have unique characteristics, so a follow-up interview or inspection may be necessary.

Policy Contact

Contact Name Paul Cartwright
Department Montana Department of Environmental Quality

Phone 406-841-5234


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

Authority 1: 15-6-157

Authority 2: 15-6-158

Authority 3: 15-24-3101