Alternative Energy Production Credit (Form APEC)

December 30, 2021

This credit was repealed by the 2021 Montana State Legislature. You may not claim this credit after Tax Year 2021. You may still carry forward any remaining tax credit until the carryforward period expires.

The Alternative Energy Production Credit allows individuals and businesses to claim a credit for a percentage of the costs associated with installing alternative energy production equipment.

Eligibility

Any individual, corporation, partnership, or small business with qualifying expenditures.

Qualifying Expenditures

A $5000 or more investment in property:

  • Depreciable under the Internal Revenue Code for a commercial or net metering system
  • Located in Montana
  • Which Generates energy through alternative energy, such as:
    • Solar Energy
    • Wind Energy
    • Geothermal Energy
    • Conversion of Biomass
    • Fuel cells that do not require hydrocarbon fuel
    • Small hydroelectrical generators producing less than 1 megawatt
    • Methane from solid waste

Benefit

35% of eligible expenditure, reduced for any grants provided by state or federal governments for that system.

Carry Over

The credit must be claimed in the first year the asset is in service and can be carried forward up to seven years.

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