Energy Conservation Tax Incentives

Many home and small business energy investments are eligible for state and federal tax incentives. And some utilities offer rebates for certain energy upgrades. And of course the present is always a good time to invest in energy conservation and renewable energy.

Most incentives are in the form of tax credits. Qualifying investments must be placed in service during the year the credit is claimed.

These renewable energy projects at the federal level include 30 percent of qualified investments being eligible, with uncapped credits for federal taxes expected to continue through 2019. The credit decreases in 2020 and will eventually expire in 2021. Of course, all credits are subtracted from net taxes owed.

For the 2017 tax year, the Montana state credit remains at 25 percent of eligible investments, up to $500 per taxpayer. The Montana credit can be claimed each year that eligible improvements are completed.

These fact sheets have been prepared to offer information and resources for specific investment areas and are for those filing based on investments made in 2017.

Energy Efficiency Tax Credit Fact Sheets

For More Information on Tax Incentives

Utility Incentive Information

  • NorthWestern Energy
  • Montana-Dakota Utilities
  • Energy West
  • The DSIRE website offers a profile of utility and electric co-op information for Montana
  • Universal System Benefits (USB) Funds:
    • Most Montana utilities have long participated in and funded energy efficiency and low income energy assistance activities through their electric and natural gas rates. In the restructuring of Montana’s energy industry, it was decided that continuing such activities was important for Montanans. Therefore, the Montana Legislature established the Universal System Benefits (USB) Charge. NorthWestern Energy and Montana-Dakota Utilities are required to collect USB funds from their customers to fund eligible activities, including energy efficiency programs, low-income energy assistance, and activities to develop renewable energy resources. This regulated charge is listed as "USBC" on your billing statement. Contact your local utility to find out about financial assistance for energy conservation projects.

Federal Tax Incentives