BEFORE THE DEPARTMENT OF REVENUE
OF THE STATE OF MONTANA
In the matter of the proposed amendment of ARM 42.4.201, 42.4.203, 42.4.204, and 42.4.206 relating to Individual Energy Conservation Installation Credit
TO: All Concerned Persons
1. On December 18, 2008, at 1:00 p.m., a public hearing will be held in the 4-East Conference Room (Fourth Floor) of the Sam W. Mitchell Building, at Helena, Montana, to consider the amendment of the above-stated rules.
Individuals planning to attend the hearing shall enter the building through the east doors of the Sam W. Mitchell Building, 125 North Roberts, Helena, Montana.
2. The Department of Revenue will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Revenue no later than 5:00 p.m., December 5, 2008, to advise us of the nature of the accommodation that you need. Please contact Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-3696; or e-mail firstname.lastname@example.org.
3. The rules proposed to be amended provide as follows, stricken matter interlined, new matter underlined:
42.4.201 DEFINITIONS (1) through (9) remain the same.
(10) "IECC" means the
2003 current International Energy Conservation Code, which is the current energy code version adopted by the state of Montana and enforced statewide as adopted by the Montana Department of Labor and Industry.
(11) through (14) remain the same.
AUTH: 15-1-201, 15-32-105, MCA
IMP: 15-32-105, 15-32-109, MCA
REASONABLE NECESSITY: The department is proposing to amend ARM 42.4.201 to amend the definition of IECC so that the term does not have to be amended each time the term is redefined by the International Energy Conservation Code and to clarify that the version of the code to be used by the Department of Revenue is the code that has been adopted by the Department of Labor and Industry.
42.4.203 CREDIT FOR ENERGY CONSERVATION INVESTMENT
(1) and (1)(a) remain the same.
(b) The purchase by the first owner or construction of a new ENERGY STAR Qualified site-built home can be considered the equivalent of investing $2,000 for energy conservation purposes resulting in a total credit of $500 ($2,000 * 25%). The $500 may be allocated among the individuals who purchased the home. Verification must be made by a third party accredited by the federal Environmental Protection Agency to rate homes under the ENERGY STAR program. The resale of an ENERGY STAR home does not qualify for the credit.
(c) The purchase by the first owner or construction of a new site-built home certified as attaining a Silver or Gold level under the Montana Building Industry Association Green Building program and having an ENERGY STAR heating system can be considered the equivalent of investing $2,000 for energy conservation purposes resulting in a total credit of $500 ($2,000 * 25%). The $500 may be allocated among the individuals who purchased the home. Certification must be made by a National Green Building Certification verifier accredited by the National Association of Home Builders. The resale of a Montana Building Industry Association Green Building certified home does not qualify for the credit.
(2) remains the same.
(3) A credit under 15-32-109, MCA, will not be allowed for an investment for which a credit under 15-32-115 or 15-32-201, MCA, is claimed.
(3) through (5) remain the same but are renumbered (4) through (6).
AUTH: 15-1-201, MCA
IMP: 15-32-106, 15-32-109, MCA
REASONABLE NECESSITY: The department is proposing to amend ARM 42.4.203 to provide another alternative for calculating the credit when constructing a new home. Certification of a new home as attaining a Silver or Gold level under the Montana Building Industry Association Green Building program demonstrates the home meets or exceeds the new construction standards as outlined in ARM 42.4.206. The department is adding new (3) because the three energy-related credits appear to be similar, leading to confusion among taxpayers. New (3) is necessary to clarify that each credit is distinct and only one of the credits can be claimed for each investment.
42.4.204 CAPITAL INVESTMENTS FOR QUALIFYING ENERGY CONSERVATION CREDIT (1) through (1)(b) remain the same.
(c) insulation of heating and air conditioning pipes,
and insulation and sealing of heating, ventilation, and air conditioning (HVAC) ducts, located in nonheated areas and insulation of hot-water heaters and tanks;
(d) through (h) remain the same.
waste heat recovery devices ventilators (HRV);
(j) through (n) remain the same.
(o) installation of new domestic water heaters, heating or cooling systems, so long as the replacement
or installation of the new system reduces the waste or dissipation of energy, or reduces the amount of energy required. has an efficiency rating higher than the prior system.
(2) remains the same.
AUTH: 15-1-201, 15-32-105, MCA
IMP: 15-32-102, 15-32-105, 15-32-106, 15-32-109, MCA
REASONABLE NECESSITY: The department is proposing to amend ARM 42.4.204 to provide clarity through an objective standard for eligible equipment and to align the terms in the rules with those used by industry.
42.4.206 NEW CONSTRUCTION STANDARDS (1) For new construction, the energy-conserving expenditure must meet or exceed the following equipment standards:
(a) through (2)(h) remain the same.
AUTH: 15-32-105, MCA
IMP: 15-32-105, 15-32-109, MCA
REASONABLE NECESSITY: The department is proposing to amend ARM 42.4.206 to clarify that new construction must meet the standards listed in ARM 42.4.206(1) in order to conform to Montana building codes.
4. Concerned persons may submit their data, views, or arguments, either orally or in writing, at the hearing. Written data, views, or arguments may also be submitted to: Cleo Anderson, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-5828; fax (406) 444-3696; or e-mail email@example.com and must be received no later than December 30, 2008.
5. Cleo Anderson, Department of Revenue, Director's Office, has been designated to preside over and conduct the hearing.
6. An electronic copy of this Notice of Public Hearing is available through the department's site on the World Wide Web at www.mt.gov/revenue, under "for your reference"; "DOR administrative rules"; and "upcoming events and proposed rule changes." The department strives to make the electronic copy of this Notice of Public Hearing conform to the official version of the Notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the Notice and the electronic version of the Notice, only the official printed text will be considered. In addition, although the department strives to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.
7. The Department of Revenue maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding particular subject matter or matters. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the person in 4 above or faxed to the office at (406) 444-3696, or may be made by completing a request form at any rules hearing held by the Department of Revenue.
8. The bill sponsor notice requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was notified on October 31, 2008 by electronic mail. For previous rule projects involving the same bill, the primary sponsor was give appropriate notice.
/s/ Cleo Anderson /s/ Dan R. Bucks
CLEO ANDERSON DAN R. BUCKS
Rule Reviewer Director of Revenue
Certified to Secretary of State November 17, 2008