Alternative Energy Systems Credit - General Instructions printable pdf download

Alternative Energy Systems Credit – General Instructions

The credit(s) from Form ENRG-B is allowed only to Montana residents who complete installation of an

alternative energy system in their principal dwelling. The credit(s) must be claimed against the taxpayer’s

liability for the year the energy system was acquired and placed in service. If the amount of the tax credit(s)

exceeds your income tax liability for the year, the excess is carried over to the next succeeding tax year or

years until the total credit(s) is absorbed. In no case can the credit(s) be carried over after the fourth taxable

year succeeding the year in which the energy system was acquired.

Geothermal Energy System Credit

“Geothermal system” means a system that transfers energy either from the ground, by way of a closed loop,

or from ground water, by way of an open loop, for the purpose of heating or cooling a residential building. A

qualifying system shall transfer energy either from the ground, ground water or surface water. It should also

have a heat pump utilizing a refrigerant cycle. If the system does no contain a heat pump, utilizing a

refrigerant cycle, the “energy conservation purpose” of the system must be explained.

For the purpose of the Geothermal Energy System Credit installation cost include the cost of : (a) trenching,

well drilling, casing and downhole heat exchangers; (b) piping, control devices, and pumps that move heat

from the earth to heat or cool the building; (c) ground source or ground coupled heat pumps; (d) liquid-to-air

heat exchanger, ductwork, and fans installed with a ground heat well that pump heat from a well into a

building; and (e) design and labor.

Alternative Energy System Credit

“Recognized nonfossil forms of energy generation,” means a system that captures energy or converts energy

sources into usable sources, including electricity, by using:

solar energy, including passive solar systems;

wind;

solid waste;

he decomposition of organic wastes;

geothermal;

fuel cells that do not require hydrocarbon fuel; or

an “alternative energy system” a system or equipment used to convert energy sources into usable

sources using fuel cells that do not require hydrocarbon fuel, geothermal systems, low emission

wood or biomass, wind, photovoltaics, geothermal, small hydropower plants under 1 megawatt, and

other recognized nonfossil forms of energy generation.

a system that produces electric power from biomass or solid wood wastes; or

a small system that uses water power by means of an impoundment that is not over 20 acres in

surface area.

“Low emission wood or biomass combustion device,” means a noncatalytic stove or furnace that:

is specifically designed to burn wood pellets or other nonfossil biomass pellets.

has a particulate emission rate of less than 4.1 grams per hour when tested in conformance with the

standard method for measuring the emissions and efficiencies of residential wood stoves, as adopted

by the department of environmental quality.

has an air-to-fuel ratio of 35 to 1 or greater when tested in conformance with the standard method for

measuring the air-to-fuel ratio and minimum achievable burn rates for wood-fired appliances, as

adopted by the department of environmental quality.

burns wood or other nonfossil biomass and has a particulate emission rate of less than 4.1 grams per

hour when tested in conformance with the standard method of measuring the emissions and

efficiencies of residential wood stoves, as adopted by the department of environmental quality.

Questions? Please call (406)444-6900 or TDD (406)444-2830 for hearing impaired.

Alternative Energy Systems Credit - General Instructions

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