Residential Alternative Energy System Tax Credit (Montana)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Montana

Name Residential Alternative Energy System Tax Credit
Incentive Type Personal Tax Credit
Applicable Sector Residential
Eligible Technologies Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Small Hydroelectric, Fuel Cells using Renewable Fuels
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100%
Carryover Provisions Excess credit may be carried forward four years

Eligible System Size Hydroelectric systems not to have generation capacity greater than 1 MW
Equipment Requirements Systems 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 500 per individual taxpayer; up to 1,000 per household

Program Administrator Montana Department of Environmental Quality

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


Residential taxpayers who install an energy system using a recognized non-fossil form of energy on their home after December 31, 2001 are eligible for a tax credit equal to the amount of the cost of the system and installation of the system, not to exceed $500. This cap is for individual taxpayers, so married taxpayers filing jointly can get a tax credit of up to $1,000 per household. The tax credit may be carried over for the following four taxable years.

Recognized non-fossil forms of energy generation means:

1. A system that captures energy or converts energy sources into usable sources, including electricity, by using:

  • solar energy, including passive solar systems;
  • wind;
  • solid waste;
  • the decomposition of organic wastes;
  • geothermal;
  • fuel cells that do not require hydrocarbon fuel; or
  • an alternative energy system;

2. A system that produces electric power from biomass or solid wood wastes; or

3. A small system that uses water power by means of an impoundment that is not over 20 acres in surface area.

Incentive Contact

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

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


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

Authority 1: MCA § 15-32-201
Date Effective 2002-01-01
Date Enacted 2001
Expiration Date none

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


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