Local Government Revenue Bonds (Montana)

From Open Energy Information

Last modified on February 12, 2015.

EZFeed Policy

Place Montana

Name Local Government Revenue Bonds (Montana)
Policy Category Financial Incentive
Policy Type Bond Program
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 Local

Program Administrator Montana Department of Environmental Quality
Primary Website http://www.deq.mt.gov/Energy/Renewable/TaxIncentRenew.mcpx
Applicable Jurisdiction Any interested county or municipality.

Last Review 2014-09-15


Limited obligation local government bonds ("special revenue bonds") may be issued for qualified electric energy generation facilities, including those powered by renewables. These bonds generally are secured by the project itself. The taxing power or general credit of the government may not be used to secure the bonds. Local governments may not operate any project financed by the sale of revenue bonds as a business except to lease it to some other party.

These bonds are exempt from state taxes and may qualify for federal tax incentives. The tax-exemption feature allows funds to be borrowed at a significantly lower rate (1-2 percent) than possible with taxable bonds. There are various restrictions on how such bonds may be used. Because of the legal complexity of a bond issue, retaining bond counsel is important.

The total amount of special revenue bonds that can be issued by state and local governments combined is capped, which theoretically could limit a government’s ability to issue new bonds for a generation facility.

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

Authority 1: 90-5-1 MCA