Energy Related Tax Relief
The following information is provided to assist you in understanding the Energy Conservation Installation Credit as well as other energy credits and incentives. The information is available in brochure format.
Energy Conservation Installation Credit
The Department of Revenue encourages citizens to weatherize their homes and take advantage of the Energy Conservation Installation Credit when individual income tax returns are filed.
The credit is applied against a taxpayer's income tax liability. Montana resident individuals can claim the credit for energy conservation investments made to a home or other building. The credit is equal to 25% of expenses, up to a maximum credit of $500. Two or more people may each qualify for the credit, as long as the building in which the investment is made is owned by all of the people claiming the credit. For example, a married couple who jointly own their home may each claim a credit up to $500 each or $1,000 for the couple.
The following investments qualify for the energy conservation credit:
- Insulation of floors, walls, ceilings and roofs in existing buildings
- Insulation in the floors, walls, ceilings and roofs of a new building, to the extent that it exceeds the current International Energy Conservation Code with Montana amendments as adopted by the Montana Department of Labor and Industry
- Insulation of heating and air conditioning pipes, insulation and sealing of heating, ventilation and air conditioning (HVAC) ducts, and insulation of hot water heaters and tanks
- Windows that result in a reduction of energy consumption
- Storm doors and insulated exterior doors
- Caulking and weather stripping of an existing structure
- Devices which limit the flow of hot water from shower heads and lavatories
- Heat recovery ventilators (HRV)
- Glass fireplace doors on existing fireplaces
- Exhaust fans to reduce air conditioning requirements
- Replacement of incandescent light fixtures with fixtures of a more efficient type such as those with electronic ballast and compact or linear fluorescent lamps and LED lights
- Lighting controls with cutoff switches to permit the selective use of lights
- Programmable thermostats
- Installation of new domestic water heaters, heating or cooling systems, so long as the new system uses energy more efficiently than the prior system
Examples of improvements that do NOT qualify
If you qualify for this credit, you will need to complete Form ENRG-C and attach it when you file your individual income tax return. Qualifying expenditures purchased and installed in 2009 can be reported as a credit on your 2009 individual income tax return. For more information, see 2009 American Recovery and Reinvestment Act immediately below. Please include Form ENRG-C.
2009 American Recovery and Reinvestment Act
Information regarding this federal act’s energy conservation tax credits and incentives, which shows a side-by-side comparison of the federal and Montana energy credits by product type and an interactive calculator that calculates the amount of your federal and Montana credit.
Other Energy Related Tax Relief
Information on other energy credits and incentives, including the Alternative Energy Systems Credit and the Geothermal Systems Credit.
Warm Hearts/Warm Homes
Information regarding the Governor’s Warm Hearts Warm Homes initiative, including how you can get help for paying your energy bill and what can you do to save energy in your home.
- Frequently Asked Questions
- Montana Department of Environmental Quality - Energize Montana
- Administrative Rules: Please note that the effective dates for the administrative rules vary.
For personal assistance or more information, please call us toll-free at (866) 859-2254 (in Helena 444-6900).
