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Rule Title: TAX YEAR FOR CLAIMING THE ENERGY CONSERVATION CREDIT AND MULTIPLE UNITS OR INVESTORS
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Department: REVENUE
Chapter: TAX CREDITS
Subchapter: Individual - Energy Conservation Installation Credit
 
Latest version of the adopted rule presented in Administrative Rules of Montana (ARM):

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42.4.205    TAX YEAR FOR CLAIMING THE ENERGY CONSERVATION CREDIT AND MULTIPLE UNITS OR INVESTORS

(1) The energy conservation credit is available in the tax year that the taxpayer paid for and completed the installation of the energy conservation investments.

(2) For an existing building, an example of how the credit would be applied is:

(a) The taxpayer purchased and completed installation of a qualifying furnace in the taxpayer's home during October of year one, half of the total price of the furnace was paid for in year one and the other half in year two. The energy conservation credit is available in tax year one only and the taxpayer is not entitled to an additional energy conservation credit for the second half payment made in year two.

(b) The taxpayer purchased a qualifying hot water heater in year one but did not have it installed until spring of year two. The energy conservation credit is available in year two only and the taxpayer can include the money expended in year one to purchase the hot water heater in calculating the credit.

(c) The taxpayer made a down payment in December of year one to have qualifying windows installed in the spring of year two. After the installation was completed in the spring, final payment was made. The energy conservation credit is available in year two only and the taxpayer can include the money expended in year one for the down payment in calculating the credit.

(3) For new construction, the energy conservation credit is available in the tax year that the construction is completed. An example of how the credit would be applied is:

(a) The taxpayer began construction of a new home in year one and finished it in year two. The taxpayer made investments in energy conservation measures that qualify for the credit according to the rules in this subchapter. The energy conservation credit is available in year two only and the taxpayer is not entitled to an energy conservation credit for year one even though the construction began in year one.

(4) A taxpayer who purchases a newly constructed manufactured or modular home may claim the credit if they purchase the ENERGY STAR upgrade package. The amount paid for the package is considered the qualifying expenditure for the purpose of determining the amount of credit. For example, a taxpayer who spends an additional $1,800 for an ENERGY STAR upgrade can claim a credit of $450.

(5) For multi-unit buildings such as apartment complexes and condominiums, an energy conservation credit will be allowed for each unit when it can be demonstrated that the expense was attributed to a specific unit. Examples of these expenditures are:

(a) a qualifying furnace that only serves one unit of a multi-unit building would qualify as one expenditure and one credit;

(b) a qualifying furnace that serves all units of a multi-unit building is considered only one energy conservation investment and would qualify as one expenditure and one credit; or

(c) installation of a qualifying furnace in each unit of a multi-unit building would qualify as a separate expenditure and credit for each unit.

(6) The energy conservation credit is available to all owners of a building who invest in energy conservation expenditures. Examples of this application are:

(a) A husband and wife replace windows and exterior doors with qualifying investments in their existing home for a total cost of $6,000. Each spouse is entitled to a maximum $500 energy conservation credit. ($6,000 x .25 = $1,500 with a maximum credit of $500 per individual.)

(b) Four individuals who own a commercial building replace windows, exterior doors and the heating system with qualifying investments for a total cost of $20,000. Each individual is entitled to a maximum $500 energy conservation credit. ($20,000 x .25 = $5,000 with a maximum credit of $500 for each individual.)

History: 15-1-201, 15-32-105, MCA; IMP, 15-32-102, 15-32-105, 15-32-106, 15-32-109, MCA; NEW, 2006 MAR p. 357, Eff. 2/10/06; AMD, 2008 MAR p. 387, Eff. 2/29/08; AMD, 2010 MAR p. 1406, Eff. 6/11/10.


 

 
MAR Notices Effective From Effective To History Notes
42-2-826 6/11/2010 Current History: 15-1-201, 15-32-105, MCA; IMP, 15-32-102, 15-32-105, 15-32-106, 15-32-109, MCA; NEW, 2006 MAR p. 357, Eff. 2/10/06; AMD, 2008 MAR p. 387, Eff. 2/29/08; AMD, 2010 MAR p. 1406, Eff. 6/11/10.
42-2-790 2/29/2008 6/11/2010 History: 15-1-201, 15-32-105, MCA; IMP, 15-32-102, 15-32-105, 15-32-106, 15-32-109, MCA; NEW, 2006 MAR p. 357, Eff. 2/10/06; AMD, 2008 MAR p. 387, Eff. 2/29/08.
2/10/2006 2/29/2008 History: 15-32-105, MCA; IMP, 15-32-105, 15-32-109, MCA; NEW, 2006 MAR p. 357, Eff. 2/10/06.
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