If you are filing a return which requires one or more Montana forms to be attached, you can still file electronically. Do not mail a paper copy of your Montana income tax return or accompanying attachments. Maintain a complete copy of your return and attachments for future reference. The department will contact you if a paper copy of your return or attachments is needed.
Alternative Energy Systems Credit
You may claim a credit for a percentage of the cost of installing a geothermal or an alternative energy system. Examples of these systems are solar energy, wind energy, and low emission wood or biomass combustion devices.
Qualifying Expenditures:
- Geothermal System: Installation cost including such cost, but not limited to, trenching, well drilling, casing, ground source pumps, ductwork, and design and labor.
- Nonfossil form of energy generation systems include such systems as wind and solar systems and expenditures include cost of the system, installation cost less any grants received.
- Low emission wood or biomass combustion device cost includes the cost of the system including the installation cost.
Benefits:
- The credit for the installation of a Geothermal System in a taxpayer's principal dwelling is entitled to a credit not to exceed $1,500. The amount of the credit not used in the year in which the installation is made may be carried forward against taxes imposed under chapter 30 for the 7 succeeding tax years. The entire mount of the credit not used in the year that it was earned must be carried first to the earliest tax year in which the credit may be applied and then to each succeeding tax year.
- The credit for the installation of a recognized nonfossil form of energy generation system in the taxpayer's principal dwelling is the cost of the system, including installation costs, less grants received, not to exceed $500 against the income tax liability imposed. The credit is deducted from the taxpayer's income tax liability for the taxable year in which the energy system was acquired. Any excess credit not claimed in the year of installation may be carried forward for 4 succeeding taxable years. A recognized nonfossil form of energy generation includes solar, wind, solid waste, decomposed organic waste, geothermal, fuel cell and alternative energy systems.
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