Montana Administrative Register Notice 42-2-913 No. 15   08/07/2014    
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In the matter of the amendment of ARM 42.4.204, 42.4.209, 42.4.1702, and 42.4.2403 pertaining to tax credits regarding energy conservation installation, temporary emergency lodging, and health insurance claims









TO: All Concerned Persons


1. On September 16, 2014, at 11 a.m., the Department of Revenue will hold a public hearing in the Third Floor Reception Area Conference Room of the Sam W. Mitchell Building, located at 125 North Roberts, Helena, Montana, to consider the proposed amendment of the above-stated rules. The conference room is most readily accessed by entering through the east doors of the building.


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, please advise the department of the nature of the accommodation needed, no later than 5 p.m. on August 25, 2014. Please contact Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail lalogan@mt.gov.


3. The rules as proposed to be amended provide as follows, new matter underlined, deleted matter interlined:


42.4.204 CAPITAL INVESTMENTS FOR QUALIFYING ENERGY CONSERVATION CREDIT (1) The following capital investments are those that exclusively qualify for the conservation of energy credit:

(a) through (n) remain the same.

(o) replacement of an existing domestic water heater or heating or cooling system with:

(i) a new one of the same style or type that has a higher efficiency rating, whether or not the new water heater or heating or cooling system meets or exceeds the established standards for new construction provided in ARM 42.4.205 42.4.206; and

(ii) through (3) remain the same.


AUTH15-1-201, 15-32-105, MCA

IMP15-32-102, 15-32-105, 15-32-106, 15-32-109, MCA


REASONABLE NECESSITY: The department proposes amending ARM 42.4.204 as a matter of housekeeping to correct an internal rule reference error.


42.4.209 STANDARDS AND RATINGS (1) remains the same.

(2) For doors and windows installed on or after January 1, 2015, only the additional cost expended to exceed the requirements of the IECC as amended and adopted by the Montana Department of Labor and Industry qualifies for the credit. An individual calculates the additional cost by comparing the actual amount expended to the estimated, retail cost of installing an item that is substantially similar in style and design and that also meets the required rating. For example, the credit cannot be based on comparing the retail cost of an ornate, solid-wood door to the cost of a less ornate, fiberglass door.


AUTH15-1-201, 15-32-105, MCA

IMP:  15-32-102, 15-32-105, 15-32-106, 15-32-109, MCA


REASONABLE NECESSITY: ARM 42.4.208 provides for periodic review of the rules in this subchapter, including taking into consideration recommendations from the Montana Department of Environmental Quality (DEQ). Therefore, the department proposes amending ARM 42.4.209 to add in new (2) based on a recommendation from DEQ.

Information provided by the DEQ shows that the ratings prescribed in the rule for doors, windows, and skylights are only slightly better than what current building codes require for new construction. The difference in cost between a window that meets the current building code and the rating required in this rule can be as little as $25. Because the purpose of the credit is to provide an incentive to take extra steps in the interest of energy conservation, only the additional cost of exceeding building codes qualifies for the credit.


42.4.1702 CREDIT FOR TEMPORARY EMERGENCY LODGING (1) The owner or operator of an establishment in Montana that is licensed by the Montana Department of Public Health and Human Services (DPHHS) to provide lodging may claim the credit described in (2) against the taxes imposed in 15-30-2103, or 15-31-101, MCA, for furnishing temporary lodging in Montana, at no cost, to an individual who has been referred by a DPHHS designated charitable organization because the individual is in temporary immediate danger from an assault or potential assault by a partner or family member. The list of organizations designated by DPHHS as authorized to make a referral is available at http://www.dphhs.mt.gov/PHSD/Food-consumer/emergency-lodging.shtml. Additional information regarding the program is also available at this web site www.dphhs.mt.gov/publichealth/fcs/emergencylodging.shtml.

(2) through (9) remain the same.


AUTH15-1-201, 15-30-2620, 15-31-501, MCA

IMP15-30-2103, 15-30-2381, 15-31-101, 15-31-102, 15-31-171, MCA


REASONABLE NECESSITY: The department proposes amending ARM 42.4.1702 as a matter of housekeeping to update a web site address and reference.


42.4.2403 REDUCTION OF DEDUCTIONS ALLOWED FOR INSURANCE CLAIMS (1) through (1)(b) remain the same.

(c) The reduction of the deduction by an employer that is a C corporation must be made by entering the appropriate amount on Form CLT-4 CIT, line 2(f), "Additions Premiums used to calculate the Insure Montana Credit".

(d) remains the same.

(e) The reduction of the deduction by an employer that is an S corporation must be made by entering the appropriate amount on Form CLT-4S, line 15c, "Other additions", and on the Montana Schedule K-1s of the shareholders, line 13 3, "Other additions".

(f) and (2) remain the same.


AUTH15-30-2104, MCA

IMP15-30-2368, 15-31-130, 33-22-2006, 33-22-2007, MCA


REASONABLE NECESSITY: The department proposes amending ARM 42.4.2403 as a matter of housekeeping to update a form name and line reference detail in (1)(c), and to change an incorrect line reference in (1)(e).


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: Laurie Logan, Department of Revenue, Director's Office, P.O. Box 7701, Helena, Montana 59604-7701; telephone (406) 444-7905; fax (406) 444-3696; or e-mail lalogan@mt.gov and must be received no later than  September 23, 2014.


5. Laurie Logan, Department of Revenue, Director's Office, has been designated to preside over and conduct this hearing.


6. 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 notice regarding particular subject matter or matters. Notices will be sent by e-mail unless a mailing preference is noted in the request. A 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.


7. An electronic copy of this notice is available on the department's web site at revenue.mt.govSelect the Administrative Rules link under the Other Resources section located in the body of the homepage, and open the Proposal Notices section within. The department strives to make the electronic copy of this notice 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. While the department also strives to keep its web site accessible at all times, in some instances it may be temporarily unavailable due to system maintenance or technical problems.


8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.


9. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rules will not significantly and directly impact small businesses.


/s/ Laurie Logan                               /s/ Alan Peura, Deputy Director, acting for

LAURIE LOGAN                              MIKE KADAS

Rule Reviewer                                 Director of Revenue


Certified to the Secretary of State July 28, 2014.



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