The Alternative Energy Production credit is for people and businesses with newly installed alternative energy systems.

Eligibility

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

Expenditures

A $5,000 or larger investment in property:

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

Benefit

A tax credit for 35% of the eligible costs, reduced for any grants provided by state or federal governments.

This credit may only be taken against taxes due for:

• Manufacturing plants in Montana producing alternative energy generating equipment,
• A new facility or the expanded portion of an existing facility powered by the alternative energy generating equipment on a direct contract sales basis, or
• The alternative energy generating equipment being claimed in the credit.

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.

This credit may be carried over up to 15 years if it is a wind energy investment:

• 5 megawatts or larger
• Located on a Montana Indian Reservation, and
• You sign an employment agreement with the tribal government of the reservation where the commercial system would be constructed regarding the training and employment of tribal members in the construction, operation and maintenance of the commercial system.

(15-32-402 and 15-32-404, MCA)

Forms

You may calculate this credit using the Alternative Energy Production Credit (Form AEPC).

Related Laws

15-32-402 and 15-32-404, MCA

ARM 42.4 Subchapter 41