Renewable Energy Systems Exemption

October 28, 2024

Summary

Montana's property tax exemption for recognized non-fossil forms of energy generation and low emission wood or biomass combustion devices may be claimed for 10 years after installation of the property. The exemption is allowed for up to $20,000 in value for single-family residential dwellings and up to $100,000 in value for multi-family residential dwellings or non-residential structures. This property is class 4 property and otherwise would be taxed on 2.54% of assessed value in tax year 2013 and 2.47% in tax years after 2013.

Recognized forms of energy generation include solar photovoltaics, passive solar, wind, solid waste, decomposition of organic wastes, geothermal, small hydropower plants, low-emission wood or biomass combustion systems, and fuel cells that do not require hydrocarbon fuel.

Use Montana Department of Revenue Form AB-14 to claim this exemption.

Program Overview

Implementing Sector:	State
Category:	Financial Incentive
State:	Montana
Incentive Type:	Property Tax Incentive
Web Site:	https://mtrevenue.gov/publications/application-for-tax-incentive-assessment-of-energy-generating-property-form-ab-14/
Administrator:	Montana Department of Revenue
Start Date:
Eligible Renewable/Other Technologies:	Solar - Passive Solar Water Heat Solar Space Heat Geothermal Electric Solar Thermal Electric Solar Thermal Process Heat Solar Photovoltaics Wind (All) Biomass Geothermal Heat Pumps Municipal Solid Waste Landfill Gas Solar Pool Heating Wind (Small) Hydroelectric (Small) Geothermal Direct-Use Anaerobic Digestion Fuel Cells using Renewable Fuels
Incentive Amount:	100% for 10 years.
Maximum Incentive:	Based on investment of $20,000 for single family, and on investment of $100,000 for multi-family, non-residential.

Incentives

This program has 1 incentives

Technologies:	Solar - Passive, Solar Water Heat, Solar Space Heat, Geothermal Electric, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Wind (All), Biomass, Geothermal Heat Pumps, Municipal Solid Waste, Landfill Gas, Solar Pool Heating, Wind (Small), Hydroelectric (Small), Geothermal Direct-Use, Fuel Cells using Renewable Fuels
Sectors:	Commercial, Industrial, Residential, Agricultural
Parameters:	The incentive is 100.00 %, The incentive has a minimum of 10.00 Years

Authorities

Name:	MCA § 15-6-224
Date Enacted:	2005
Expiration Date:	none

Name:

MCA § 15-32-102

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.