(1) Eligible investments for the energy conservation credit in new construction are the investments that exceed the requirements of the IECC with Montana amendments as described in ARM 42.4.206. An example of a correct application is:

(a) Example, if a taxpayer installs an ENERGY STAR qualified furnace in a new construction project, the incremental cost of equipment and installation costs above a conventional furnace required by code qualifies for the energy conservation credit.

(2) For investments in existing buildings, a credit will be given for capital investments that are recognized to substantially reduce the waste or dissipation of energy, or reduce the amount of energy required for proper utilization of the building.

(3) A credit will not be allowed for capital investments that are directly used in a production or manufacturing processor rendering a service to customers.

(4) Only investments in buildings located in Montana qualify for the energy conservation credit.

(5) See ARM 42.4.118 for filing requirements.