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 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 up to a maximum credit of $500.
- Alternative Energy System Credit – and income tax credit for individuals who install nonfossil 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 1Megawatt – New generating facilities with a nameplate capacity of less than 1MW and that use an alternative energy resource are exempt from property taxes for the first 5 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 Revenue’s website.
Renewable Energy Loans
Alternative Energy Revolving Loan Program – 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.
Federal Tax Credits
Several energy efficiency tax credits expired at the end of 2011 and Congress has not extended them. These include individual income tax credits for:
- Residential insulation, windows, heating and cooling systems and water heaters
- New homes that use half the energy of a home building to baseline energy codes
- High efficiency refrigerators, clothes washers and dishwashers
Five federal tax incentives remain in place:
- New and retrofitted commercial buildings that use half of the energy of model codes
- Plug-in electric drive vehicles
- Combined heat and powered systems
- On-site renewable energy systems
- Fuel cells and micro turbines