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(1) For energy generating systems installed to existing structures and not integral to the structure's original construction, the energy generating system must be one that fits the description in 15-32-102 , MCA, and one that is either generally recognized as a nonfossil energy generating system (recognized by the Department of Environmental Quality or the alternative energy industry) or one that the applicant can demonstrate is energy generating.

(2) Systems determined to be acceptable include, but are not limited, to the following:

(a) Solar greenhouses, sun porches, and like structures that are properly situated, constructed, and ducted to the buildings for which they provide energy to be reasonably considered a complete or supplementary energy source for that building.

(b) Solar collectors with systems for providing energy to existing structures (example: solar energy panels) .

(c) Components of a structure that have been altered for energy collection, storage, and/or distribution to benefit the rest of the structure. An example would be enclosed porches with the addition of triple glazed windows. The value added by the triple glazed windows is exempt.

(d) Stoves or furnaces, or catalytic converters added to stoves or furnaces which burn wood or other nonfossil biomass and which have an emission rate of less than six grams per hour.

(3) Energy generating systems which are standard components of conventional structures do not qualify for the property tax exemption or the income tax credit. Components recognized as nonstandard include, but are not limited to, the following:

(a) Windows installed in excess of "double-glazing."

(b) Thermal collection masses such as brick, stonework, and other types that were not present in the original structure and were not installed for a purpose other than energy storage.

(c) Energy collection, generation, and distribution equipment related solely to recognized nonfossil energy generation systems.

(4) The predominant use of an applicant's system will be determined as other than energy generating if it possesses any two of the following characteristics:

(a) It is a structure that will be occupied more than four hours in a day.

(b) It is a structure that serves as a regularly used entry way to the building for which it provides energy.

(c) It is a structure that receives heat from a source other than the energy it generates.

(d) It is a structure that contains more space than is reasonably necessary for energy collection, generation, and distribution (about 200 to 230 sq. ft. to provide heat to a building with at least 1,000 sq. ft. of living area) .

(e) It is part of the living area of the structure for which it provides energy.

(5) In determining the amount of property tax exemption and the calculation of the income tax credit for energy generating systems installed to existing structure, the following criteria must be met:

(a) The system must qualify for the property tax exemption and the income tax credit.

(b) The system description should be recorded on the property diagram located on the appraisal record card for property tax exemption purposes.

(c) No value for the system should be recorded on the appraisal record card for the property tax exemption.

(6) The property tax exemption will apply by excluding the energy system from valuation for a period as determined in ARM 42.19.1104.

History: 15-1-201, 15-32-203, MCA; IMP, 15-6-201, 15-32-102, 15-32-201, 15-32-202, MCA; NEW, 1986 MAR p. 2011, Eff. 12/12/86; AMD, 2000 MAR p. 3560, Eff. 12/22/00; AMD, 2004 MAR p. 1965, Eff. 8/20/04.

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