Montana law exempts capital investments in non-residential buildings that generate energy from non-fossil sources from property tax. Exemptions cannot exceed $100,000 and are exempt for ten years after installation. To claim the exemption, use Montana Department of Revenue Form AB-14.
The Montana Energy Office operates a revolving fund to provide low-interest loans to local governments, non-profits, and businesses under 100 employees for renewable energy and efficiency projects. The program offers loans up to $40,000 with no down payment at an interest rate of 3.5% on
Commercial properties and large residential developments in participating municipalities can apply for financing that covers 100% of the upfront costs for renewable energy and energy efficiency projects. Eligible properties include commercial, industrial, non-profit, mixed-use, agricultural, and multi-family units. Projects greater than $100,000 may be eligible
The Montana Department of Environmental Quality provides grants for development and demonstration of energy storage systems using a wide range of renewable energy resources. The department gives individual grants up to $500,000. Eligible grant recipients include entities of the Montana university system, agricultural research centers,
Under Montana property tax, properties that produce renewable energy and begin construction after June 1, 2007, are taxed between 1.5% and 12% of their market value depending on their class.
In 2021, Montana created a new tax classification for green hydrogen, alongside new tax incentives for the technology. Under the law, any facility producing hydrogen without emitting greenhouse gasses, storing or transporting such hydrogen, or generating electricity from such hydrogen will be taxed at a
Energy efficiency building standards apply to new construction and major renovation projects of state owned or state leased buildings. Buildings must exceed the International Energy Conservation Code by at least 20%, where cost-effective. The Montana Department of Labor, Montana university system, and other state agencies
Generation plants that produce at least 1 MW of energy using an alternative renewable energy source can receive industry property tax reductions. In the first 5 years of construction from the permit issue date, qualifying improvements or modernizations that contribute to new industry or expansion
A business can deduct from corporate taxes a portion of a capital investment that supports energy conservation, up to $3,600. Energy conservation investments that reduce energy waste or reduce energy usage are eligible.
Regulated electric utilities across Montana are required to offer customers a green power option from renewable resources. Specific renewable energy types and program administration policies vary by utility.
