Montana Clean Energy Tax Credits

Montana clean energy tax credits and low-interest loans help reduce upfront costs for individuals who improve the energy efficiency of their homes or install renewable energy systems on their property.

Montana Tax Credits
  • Montana Energy Conservation and Installation Tax Credit – Montana residents can claim a credit for energy conservation investments made to a home or other building. The credit is equal to 25% of expenses for the system up to a maximum credit of $500.
  • Alternative Energy System Credit – An income tax credit for individuals who install non-fossil fuel forms of energy including but not limited to wind, solar, and geothermal systems. The credit cannot exceed $500 per individual or $1,000 per married couple. Any remaining balance of the credit can be carried forward and applied to future income tax liabilities for a period of four succeeding tax years.
  • Property Tax exemption for renewable energy facilities under one megawatt – New generating facilities with a nameplate capacity of less than one megawatt and that use an alternative energy resource are exempt from property taxes for the first five years after starting operation.
  • Personal income tax credits for installing a residential geothermal system – A taxpayer who installs a geothermal or geothermal heat-pump system in the taxpayer’s principal dwelling, or the builder of a house, can claim a tax credit based on the installation costs of the system, not to exceed $1,500.

For more information on these and other state tax incentives go to the Montana Department of Environmental Quality website.

Renewable Energy Loans

Alternative Energy Revolving Loan Program – State program that offers low-interest loans for up to $40,000 with interest payments up to 10 years. The loans help fund alternative energy systems that generate energy for the building occupant’s own use, or for net metering. Energy conservation measures installed in conjunction with the alternative energy project may be funded but are limited to 20 percent of the loan amount.

For more information on alternative energy loans visit Montana Department of Environmental Quality website.

Federal Tax Credits

Over 40 federal tax incentives exist that encourage energy conservation and renewable energy production. Many are targeted at utility-scale power plants and corporate customers with large tax payments, however important residential and small business incentives exist as well. These include:

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