Green Building Incentives
Building green can save valuable dollars and energy. According to the Montana Governor's Climate Change Report, building more efficient structures is the most cost effective way to reduce greenhouse gases. While installing renewable energy sources in your home or business may demand capital costs, Montana is one of only a handful of states to offer tax credit programs as well as loans for renewable energy. Individuals and business owners can take advantage of the following incentives to make your house or business more efficient, save energy, and, at the same time, save money.
New home federal tax credit: New homeowners can claim a credit of $2,000 if the new home, site-built or manufactured, saves at least 50% of the heating and cooling energy of a comparable home of national model code. Alternatively, for new manufactured homes, also claim a $1,000 credit for homes that save 30% or that qualifies for the U.S. EPA Energy Star Homes program.
American Council for an Energy-Efficient Economy
Smart Energy Living -- Heating
Smart Energy Living -- Cooling
Improving existing homes federal tax credit: Individuals can claim 30% back for the cost of adding new qualified energy property to the home. This property includes certain electric heat pump water heaters; electric heat pumps; geothermal heat pumps; central air conditioners; natural gas, propane, or oil water heaters; qualified furnaces and water boilers; certain fans used in furnaces. Claim 30% of costs, with a limit of $2,000, for installing qualified solar electric property or qualified solar water heating property.See Form 5695, Residential Energy Credits.
Renewable energy property state tax exemption: Individuals can claim property state tax exemption for 10 years and up to $20,000 for a single-family home (and $100,000 for all multi-family structures) of the assessed value of non-fossil forms of energy generation equipment, including solar, photovoltaics, passive solar, wind, solid waste, decomposition of organic wastes, geothermal, fuel cells that do not require hydrocarbon fuel, small hydropower plants, and low-emission wood or biomass combustors are exempt from property taxes for 10 years following installation.
Contact the Department of Revenue at 406-444-6900; use state tax form AB-14.
Personal income state tax credit: Individuals and business owners can claim a state tax credit of up to $1,500 for installing a geothermal heat-pump system or up to $500 for installing a recognized non-fossil form of energy generation or heating, including low-emission wood or biomass combustion devices in the home or business.
Contact the Department of Revenue at 406-444-6900; use state tax forms ENRG-A and ENRG-B.
Wind energy tax credits: Individuals and business owners can claim a state credit of up to $500 for the installation of a wind electricity generating system or in facilities that manufacture wind energy equipment. Electricity from wind generation is exempt from the wholesale energy transaction federal tax of .015 cents/k Wh transmitted.
Use state tax form ENRG-B.
American Wind Energy Association
Bioenergy federal tax credit: Individuals and business owners can claim a tax credit of up to $3,400 for purchase of hybrid and advanced lean-burn diesel vehicles. Electric vehicles are eligible for a one-time tax credit of 10% of the vehicle cost, up to $4,000 a vehicle.
Fuel Efficient Vehicle Tax Incentives Information Center
New Commercial buildings: Businesses using an alternative renewable energy source can claim a state tax credit of 1% of new wages from corporate income taxes paid in state during the first three years of operation, but only if total full-time jobs increase by 30% or more.
Contact the Department of Revenue at 406-444-1758.
Administrative Rules of Montana
Commercial alternative energy investment state tax credit: Business investments of at least $5,000 are eligible for up to 35% tax credit against corporate income tax.
Contact the Department of Revenue, 406-444-6900; use state tax form AEPC for individuals or for businesses.
Ways to make your home high-efficiency: Install better-insulated foundations, walls, and ceilings; high-efficiency windows; well-sealed framing and air ducts; high-efficiency heating and cooling systems.
Solar TodayDepartment of Environmental Quality
Financial Assistance
Individuals and business owners can receive a low-interest loan for up to $40,000 with repayment up to ten years for installing alternative energy systems. Contact Kathi Montgomery at the Department of Environmental Quality at (406) 841-5243.
For eligible beginning agricultural operators, private agricultural lenders offer lower interest loans up to $250,000 for the production of energy using an alternative renewable energy source. To learn more about the Beginning Farm/Ranch Loan Program, contact the Department of Agriculture at (406) 444-2402.
Montana offers loans of up to $35,000 to businesses with no more than ten full-time employees and a gross annual revenue of less than $500,00o that use an alternative renewable energy source. Contact the Department of Commerce's MicroBusiness Finance Program at (406) 841-2751.
Utility funding programsLincoln Electric offers loans or cash-back rebates on qualifying systems. Receive a $60 energy credit on your bill when you purchase a qualifying energy-efficient electric water heater. Through LEC's GreenPower program, members are able to purchase 100 percent GreenPower for their home or business, or purchase 100 kWh blocks of wind powered generation for only $1.50 per block.
Call 1-406-889-3301 or toll free 1-800-442-2994.
Yellowstone Valley Electric offers rebates for purchasing energy efficient add-on heat pumps, geothermal heat pumps, water heaters, dishwashers, refrigerators, and washing machines.
Contact Brandon Wittman at (406) 348-3411, or at bwittman@yvec.com. Learn more at http://www.yvec.com.
NorthWestern Energy provides funding for renewable energy projects, as well as a full rebate for purchases of compact fluorescent lights (CFLs) and hardwired CFL fixtures.
Call (888) 700-6878 or visit http://www.northwesternenergy.com/energy/renewables/renewable_energy.htm.
Missoula Electric provides a $60 rebate toward energy efficient water heaters.
Call Missoula Electric Cooperative, Inc. at (406) 541-4433 or 1-800-352-5200
Flathead Electric offers a $1000 rebate on energy efficient air-source heat pumps $2000 rebate on geothermal heat pumps. Flathead Electric allows customers to replace a portion of their normal power supply with an equal amount of Environmentally Friendly Power.
Contact Janice Weaver at (406) 751-4483 or visit http://www.flatheadelectric.com/.
Energy West Montana offers low- and no-interest loans for improvement such as new furnaces, water heaters, and windows.
Contact Edward Kacer, Director of Operations, at 406-791-7500, or at ejkacer@ewst.com.