Fillable Form Enrg-B - Alternative Energy System Credit

Form ENRG-B Instructions

What is a recognized nonfossil form of energy

I installed a wood burning stove in my principal

generation?

dwelling this year but I am unable to claim the

full amount of my credit because my income tax

A recognized nonfossil form of energy generation means:

liability is less than $500. Can I carry my unused

• a system that captures energy or converts energy

credit forward?

sources into usable sources, including electricity, by

Yes. You can carry forward any unused portion of your

using:

credit for four succeeding tax years.

• solar energy, including passive solar systems

Complete the carryforward section on the form to determine

• wind

the amount of credit that can be carried forward.

• solid waste

Your total credit reported in the year of installation and in

subsequent years cannot exceed the maximum credit of

• the decomposition of organic waste

$500 per taxpayer for each installation. For example, you

• geothermal

are a single individual who purchased and installed an

alternative energy system for $4,000 in 2011. You took a

• fuel cells that do not require hydrocarbon fuel; or

$500 alternative energy system credit on your 2011 tax

• a system that produces electric power from biomass or

return. You are not entitled to any additional credit for that

solid wood wastes; or

installation in any tax year following 2011.

• a small system that uses water power by means of an

My spouse and I jointly own our principal

impoundment that is not over 20 acres in surface area.

dwelling. Can we both qualify for the alternative

What is a low-emission wood or biomass

energy system credit?

combustion device?

If you both paid for the installation of any one alternative

energy system and the total cost was $1,000 or more, you

A low-emission wood or biomass combustion device

can each claim up to $500. If the cost of the system was

means:

less than $1,000, you may allocate the credit between you

• a wood-burning appliance that:

and your spouse, but neither spouse can claim more

than $500.

• is certiﬁ ed by the U.S. environmental protection

agency pursuant to 40 CFR 60.533, or

I made repairs to my alternative energy system

• uses wood pellets as its primary source of fuel; or

this year. Am I entitled to claim this credit for the

• an outdoor hydronic heater qualiﬁ ed for the phase 2

cost of my repairs?

white tag under the U.S. Environmental Protection

No. Repairs to your existing alternative energy system

Agency Method 28 OWHH; or

are not installation costs that entitle you to an additional

• a masonry heater constructed or installed in compliance

alternative energy system credit.

with the requirements for masonry heaters in the

For example: In 2012, you replaced damaged solar panels

International Residential Code for One- and Two-Family

that were installed in your principal home in 2009, at which

Dwellings.

time you claimed an alternative energy system credit of

$500. You are not entitled to an additional $500 credit for

Who qualiﬁ es for the alternative energy system

the repairs and replacement of parts to your existing solar

credit?

system.

The alternative energy systems credit is available only to

Montana resident individuals who install a qualifying system

Please visit our website at revenue.mt.gov for additional

or device in their principal dwelling.

information regarding energy-related tax relief options. The

website includes information such as answers to frequently

asked questions and links to other related sites.

In 2012, I paid for an alternative energy system but

installation wasn’t complete until 2013. When can

Administrative Rules of Montana: 42.4.104 through

I take the credit?

42.4.121

You can claim the credit in 2013 when installation is

Questions? Call us toll free (866) 859-2254 (in Helena,

complete and the system is ﬁ rst in service. You can include

444-6900) or TDD (406) 444-2830 for the hearing impaired.

the amount paid in 2012 when calculating your credit for

2013.

Form Enrg-B - Alternative Energy System Credit - 2012 Page 3

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