Montana: Residential Alternative Energy System Tax Credit
Tax credits for solar space/water heaters, solar panels, wind, biomass, hydroelectric fuels cells and geothermal heat pumps for up to $4,500.
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Residential taxpayers who install an energy system using a recognized non-fossil form of energy on their home after December 31, 2001 are eligible for a tax credit equal to the amount of the cost of the system and installation of the system, not to exceed $500. This cap is for individual taxpayers, so married taxpayers filing jointly can get a tax credit of up to $1,000 per household. The tax credit may be carried over for the following four taxable years.
Recognized non-fossil forms of energy generation means:
1. A system that captures energy or converts energy sources into usable sources, including electricity, by using:
- solar energy, including passive solar systems;
- wind;
- solid waste;
- the decomposition of organic wastes;
- geothermal;
- fuel cells that do not require hydrocarbon fuel; or
- an alternative energy system;
3. A small system that uses water power by means of an impoundment that is not over 20 acres in surface area.