Personal Income Tax Credit for Alternative Fuel Motor Vehicle Conversion

June 08, 2004

Summary

An individual or business is allowed a state income tax credit for equipment and labor costs incurred to convert a motor vehicle licensed in Montana to operate on alternative fuel. The maximum credit that may be claimed in a year is up to 50% of the equipment and labor costs incurred but no more than $500 for conversion of a vehicle with a gross weight of 10,000 pounds or less or $1,000 for heavier vehicles. "Alternative fuel" means natural gas, liquefied petroleum gas, liquefied natural gas, hydrogen, electricity or any other fuel if at least 85% of the fuel is methanol, ethanol or other alcohol, ether, or any combination of them. The credit allowed under this section may not exceed the taxpayer's income tax liability and there is no carryback or carryforward of the credit. Use Department of Revenue form AFCR to claim this exemption.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Montana
Incentive Type:	Personal Tax Credit
Web Site:	http://www.deq.state.mt.us/energy/Renewable/TaxIncentRenew.asp#15-30-164
Administrator:	Montana Department of Revenue
Start Date:
Eligible Renewable/Other Technologies:	Renewable Fuel Vehicles
Incentive Amount:	Up to 50% of the equipment and labor costs incurred
Maximum Incentive:	$500 for vehicle with a gross weight of 10,000 pounds or less or $1,000 for heavier vehicles
Carryover Provisions:	No carryback or carryforward of the credit

Authorities

Name:	15-30-164 MCA
Date Enacted:	1993

Contact

Name:	Information Specialist - MT Dept. of Rev.
Organization:	Montana Department of Revenue
Address:	P.O. Box 8018 Helena MT 59604-5805
Phone:	(406) 444-6900
Email:	DORCustomerAssistance@mt.gov

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.