Montana Alternative Energy Systems Credit

Alternative Energy Systems Credit  

**The Alternative Energy Systems Credit was relealed and may not be claimed after tax year 2021.  You may carry forward any unused portion of your credit for up to 4 years, until tax year 2025, or until it has been exhausted, whichever comes first.**

Nonfossil form of energy: If you are a resident of Montana, you can claim a credit against your income tax liability for the cost of purchasing and installing an energy system that uses a recognized nonfossil form of energy such as, but not limited to, solar energy, wind energy, solid waste and organic waste in your principal home. Your total credit cannot exceed $500 per taxpayer. Any balance of your credit that is not used in 2020 can be carried forward and applied to future income tax liabilities for a period of four succeeding tax years. You are not allowed to claim both the alternative energy systems credit and the geothermal systems credit for the same investment.

Low emission wood or biomass combustion: If you are a resident of Montana, you can claim a credit against your income tax liability for the cost of purchasing and installing an energy system using a low emission wood or biomass combustion device, such as a pellet or wood stove in your principal home. You can also claim the credit for installing certain outdoor hydronic heaters or masonry heaters. Your total credit cannot exceed $500 per taxpayer. Any balance of your credit that is not used in 2020 can be carried forward and applied to future income tax liabilities for a period of four succeeding tax years.

When you claim this credit, you will have to include a copy of Form ENRG-B with your tax return.