Home | Quick Tips | Appliances | Building Shell | Energy Audits | Lighting | Publications | Utility Programs
Energy Conservation... In Your Home
Tax Credit and Incentives
Energy efficiency improvements can reduce your Montana tax bill as well as your monthly energy bills. Montana homeowners are eligible for a tax credit for a portion of the costs of installing additional insulation, caulking materials or other measures that reduce energy use and lower your utility bills. The amount of the tax credit is 25 percent of the investments you make to improve the energy efficiency of your home. The maximum amount of the credit for each tax year is $500 per taxpayer.
The Montana Department of Revenue has determined that all of the following conservation investments are eligible for the credit:
- For existing homes: insulating floors, walls and ceilings
- High efficiency heating systems (ENERGY STAR rated)
- Sealing and insulating duct work or piping in non-heated areas
- Hot water tank insulation blankets
- Storm windows
- Programmable or set-back thermostats
- Replacement of incandescent light fixtures with high efficiency lighting fixtures. This applies only to permanent fixtures, not to efficient light bulbs such as compact fluorescents installed in existing fixtures.
- Energy efficient windows
This is only a partial list of items that may qualify. Go to Tax Incentives for Homeowners for fact sheets that offer more details on products that qualify.
The Energy Conservation Tax credit can be used both for new construction and remodeling projects. However, for new construction and remodeling projects the tax credit is allowed ONLY for the portion of the cost and materials that is above established standards of construction.
You apply for the tax credit by completing tax form "ENRG-C" for individual income taxpayers. The energy conservation credit is allowed ONLY for the year the energy conservation improvements are placed in service.
Click here to get the Montana Department of Revenue tax forms.
Federal Energy Bill Tax Credits
Federal tax incentives for investments in energy conservation are available. For 2009 and 2010, many qualifying investments are calculated at 30 percent of the cost, capped at $1,500 per taxpayer. The $200 cap on energy-efficient replacement windows has been removed for 2009 and 2010. Certain investments in on-site renewable energy will be calculated at 30 percent with no cap. For more information about federal tax incentives and an overview of tax incentives of the economic stimulus package, see the Federal Tax Incentives Assistance Project. A series of tax incentive fact sheets is also available.
