Energy Related Tax Relief | Montana Department of Revenue
Valid: Always Valid
Amount: 25% of cost of capital investment (up $500 for individual; up to $1,000 for a married couple filing jointly)
Description: Individual taxpayers may claim a credit against their income tax liability for up to 25% of the costs of investment for energy conservation purposes in a building. The maximum credit is $500 per individual (a married couple filing jointly can claim a tax credit of $1,000). The credit must be claimed in the year that the expenditure is made. It is nonrefundable and may not be carried over to future years. For doors, windows, and skylights in new construction, only the amount spent to surpass the applicable state or federal construction and energy standards may be used.
About Energy Conservation Installation Credit
The Department of Revenue encourages citizens to weatherize their homes and take advantage of the Energy Conservation Installation Credit when individual income tax returns are filed. The credit is applied against a taxpayer's income tax liability. Montana resident individuals can claim the credit for energy conservation investments made to a home or other building. The credit is equal to 25% of expenses, up to a maximum credit of $500. Two or more people may each qualify for the credit for their share of investments in the same building. For example, a married couple who jointly own their home may each claim a credit up to $500 or $1,000 for the couple if the investments were paid with joint funds or each spouse used their own funds.
INVESTMENTS THAT QUALIFY FOR THE ENERGY CONSERVATION CREDIT
- Heat recovery ventilators (HRV) meeting the CSA C439-00 standard
- Heating and cooling systems that meet or exceed the following ratings:
- Split system central air conditioning with an EER greater than or equal to 13 and SEER greater than or equal to 16
- Package system central air conditioning with an EER greater than or equal to 12 and SEER greater than or equal to 14
- Split system air source heat pumps with an HSPF greater than or equal to 8.5, EER greater than or equal to 12.5 and SEER greater than or equal to 15
- Package system air source heat pumps with an EER greater than or equal to 12 and SEER greater than or equal to 14
- Natural gas or propane furnaces with an AFUE greater than or equal to 95 Oil furnaces with an AFUE greater than or equal to 90
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