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Combined Heat and Power Partnership

Alternative Energy Investment Tax Credit (Corporate)

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated11/16/2012
Incentive TypeTax
Incentive Administrator/Contact OfficeMontana Department of Revenue
Incentive Initiation Date1/1/2002
Incentive Size and Funding SourceCommercial and net metering alternative energy investments of $5,000 or more are eligible for a tax credit of up to 35% against individual or corporate tax on income generated by the investment. The investment must be depreciable. The credit is applied only against taxes due as a consequence of taxable or net income produced by:
  • A manufacturing plant that is located in Montana and that produces alternative energy generating equipment.
  • A new business facility or the expanded portion of an existing business facility that supplies basic energy needed from the alternative energy generating equipment on a direct contract sales basis.
  • The alternative energy generating equipment itself.
Taxpayers may not take this credit in conjunction with any other state energy or state investment tax benefits, or with the property tax exemption for non-fossil energy property.
Eligible RecipientThis credit is available to taxpayers purchasing an existing facility as well as to those building a new facility. While net metered systems are eligible, the tax credit is only for any income generated by the system.
Eligible FuelLandfill Gas; Woody Biomass; Biogas; Other
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Application Form(s)Tax Form AEPC (PDF)
Other Incentive DetailsThe tax credit must be taken the year the equipment is placed in service; however, any portion of the tax credit that exceeds the amount of tax to be paid may be carried over and applied against state tax liability for the following 7 years.

If a project sized 5 megawatts (MW) or larger is installed on an Indian reservation in Montana, a credit may be extended through the 15th tax year succeeding the tax year of installation, provided that the installation meets other specified criteria.

Applicants should use state tax form AEPC for individuals or for businesses. Form is updated annually.
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