Energy Conservation Tax Incentives
Many home and small business energy investments are eligible for significant state and federal tax incentives. And some utilities offer rebates for certain energy upgrades. Now is always the best time to invest in energy conservation and renewable energy.
Most of these incentives are in the form of tax credits. Qualifying investments must be placed in service during the year the credit is claimed. The 2009 and 2010 tax years offered a window of opportunity for many of the federal credits. However, most of the federal credits have rolled back to where they were for 2008 and previous tax years.
For 2011, the maximum federal credit for insulation and most home conservation improvements is limited to $500. Further, that cap is on all credits claimed since 2006. Consequently, if a homeowner has claimed $500 or more in energy conservation credits in previous years, a claim in 2011 will be ineligible.
Certain investments in renewable energy projects remain more expansive, with uncapped credits for federal taxes. And, of course, all credits are subtracted from net taxes owed.
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 the 2010 tax year.
Energy Efficiency Tax Credit Fact Sheets
- Part 1 Insulation and the Building Envelope
- Part 2 Replacement Windows
- Part 3 Renewable Energy Applications: Wind and Solar
- Part 4 Ground-Source Heat Pumps
- Part 5 Biomass (Wood) Stoves
- Part 6 Furnaces, Boilers and Air Conditioning
- Part 7 Domestic Hot Water Heaters
For More Information on Tax Incentives
- Montana Incentives for Renewable Energy
- Energy Related Tax Relief Information from the Montana Department of Revenue
Utility Incentive Information
Federal Tax Incentives
