INCENTIVE PROGRAMS:

·         LINCOLN/FLATHEAD ELECTRIC

·         NW ENERGY

·         MONTANA INCENTIVES FOR RENEWABLES AND EFFICIENCY

·         FEDERAL TAX CREDITS FOR ENERGY EFFICIENCY

                This is an outline of incentive programs available that could apply in a renovation.  Review the specifics within each of these programs before beginning your project in order to ensure your ability to qualify.  For example, some programs require an installer with a special qualification in order for the rebate to apply.   

FLATHEAD ELECTRIC                                     http://www.flatheadelectric.com

·         Energy Fix Residential Insulation Rebate

                Flathead Electric Cooperative will pay rebates for new properly installed insulation in your           electrically heated home. This offer is for existing homes only and does not apply to new   construction.

·         Energy Fix Residential Prime Window Replacement Rebate

                Flathead Electric Cooperative is offering rebates for qualifying models of replacement windows                in electrically heated homes. In order to qualify:

                >Existing windows must be either single pane wood or metal frame (with or without      storm windows) or double pane windows with metal frames.

                                >Prime window replacements must meet Energy Star requirements and have a U-value                                               of .30 or less.

·         Air Source Heat Pump Rebate

                Flathead Electric Cooperative will pay you a $1,000 rebate if you purchase and install a    qualifying model.

·         Ground Source Heat Pump Rebate

                Flathead Electric Cooperative will pay you a rebate if you purchase and install a qualifying             model.

·         Energy Star Appliance Rebate

                Flathead Electric Cooperative will pay you a rebate if you purchase and install the following         Energy Star rated model appliances.

                                >Clothes Washer – $70.00 with an electric water heater; $25.00 with a gas water heater

                                >Refrigerator – $25.00

                                >Dishwasher – $25.00

                                >Freezer – $25.00

·         Electric Water Heater Rebate

                Flathead Electric Cooperative will pay you a $60 rebate if you purchase and install a high                efficiency model.

                Note: Look for a .93 (or higher) energy factor for 60 gallons or less, and a .91 energy factor for    61 gallons or over. Call the Co-op if there are any questions.

                Install the tank in our service territory.

 

Contact: Don Newton
Energy Services Coordinator
Flathead Electric Cooperative
(406)-751-4485

 

NW ENERGY

Rebates for Homeowners  : Visit http://www.northwesternenergy.com to review the details

Programmable Thermostat Rebate  
If you purchase an ENERGY STAR programmable thermostat and install it in an existing home, you are  eligible for a $30 rebate.

Efficient Water Measures Rebates  
If you install measures that save water and the energy used to heat it, you may qualify for rebates. 

Insulation Rebate  
If you improve the insulation levels in your home, you may be eligible for a rebate.

High Efficiency Natural Gas Equipment Rebates 
If you buy high efficiency equipment when you replace your furnace, boiler, or water heating equipment, you may be eligible for a rebate through the E+ Natural Gas Savings Rebate Program.  Rebates are also available for boiler controls and natural gas convection ovens. 

Improvements to Existing Natural Gas Equipment Rebate 
If you make qualifying improvements to your existing natural gas furnace or boiler, you may be eligible for a rebate through the E+ Natural Gas Savings Rebate Program. 

Switch from Electric to Natural Gas Rebates   
If you switch your electric heat or water heat to regulated natural gas, you may be eligible for a rebate under our E+ Residential Electric Savings Program. 

 MONTANA INCENTIVES FOR RENEWABLES AND EFFICIENCY

A.      Residential Geothermal Systems Credit

Incentive Type:

Personal Tax Credit

 

Eligible Renewable/Other Technologies:

Geothermal Heat Pumps

Applicable Sectors:

Residential

Amount:

100%

Maximum Incentive:

$1,500

Carryover Provisions:

Credit not used in the year in which the system is installed may be carried forward for the 7 succeeding tax years.

Website:

http://www.deq.state.mt.us/
energy/Renewable/TaxIncentRenew.asp#15-32-115

Authority 1:

MCA § 15-32-115

Date Enacted:

5/5/2001

Effective Date:

1/1/2002

Expiration Date:

None

 

Summary:

 

A resident taxpayer of Montana who installs a geothermal heating or cooling system in their principal dwelling can claim a tax credit based on the installation costs of the system, not to exceed $1,500.  
 

Contact:

 

Kathi Montgomery
Montana Department of Environmental Quality
Planning, Prevention, and Assistance
1100 North Last Chance Gulch
PO Box 200902
Helena, MT 59620
Phone: (406) 841-5243
Fax: (406) 444-6836
E-Mail:
[email protected]
Web site: http://www.deq.state.mt.us/ppa/

 

 

Information Specialist – MT Dept. of Rev.
Montana Department of Revenue
P.O. Box 5805
Helena, MT 59604-5805
Phone: (406) 444-6900
Web site:
http://www.state.mt.us/revenue

Use Montana Department of Revenue Tax Form ENRG-C (you can find this form at:  http://mt.gov/revenue/formsandresources/07forms/2007_ENRG-A.pdf) to take this credit.  

 

 

B.      Energy Conservation Installation Credit

 

Incentive Type:

Personal Tax Credit

 

Eligible Efficiency Technologies:

Water Heaters, Chillers, Furnaces, Boilers, Heat pumps, Air conditioners, Programmable Thermostats, Caulking/Weather-stripping, Building Insulation, Windows, Doors

Applicable Sectors:

Residential, Multi-Family Residential

Amount:

25% of cost of capital investment

Maximum Incentive:

$500

Website:

http://mt.gov/
revenue/forindividuals/individualincome/incentivesiit.asp#conservation

Authority 1:

M.C.A. §15-32-109

 

Summary:

 

Individual taxpayers may claim a credit against their tax liability for up to 25% of the costs of investment for energy conservation purposes in a building. The maximum credit is $500 for investment in the physical attributes of a building or in a water, heating or cooling system. The credit must be claimed in the year that the expenditure is made. For new construction, only the portion of the work that surpasses any applicable state or federal construction standards may be used.  
 
Use Montana Department of Revenue Tax Form
ENRG-C (you can find this form at:  http://mt.gov/revenue/formsandresources/07forms/2007_ENRG-A.pdf) to take this credit.  

 

 

 

Contact:

Incentive Type:

Personal Tax Credit

 

Eligible Renewable/Other

 

Technologies:

Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Low-Emission Wood Stoves, Small

 

Hydroelectric, Fuel Cells using Renewable Fuels

Applicable Sectors:

Residential

Amount:

100%

Maximum Incentive:

$500

Carryover Provisions:

Excess credit may be carried forward four years.

Eligible System Size:

Hydroelectric systems not to have generation capacity greater than 1 MW

Equipment/Installation Requirements:

Systems must be new and in compliance with all applicable performance and safety standards.

Authority 1:

MCA § 15-32-201

Date Enacted:

2001

Effective Date:

1/1/2002

Expiration Date:

none

Website:

http://www.deq.state.mt.us/
energy/Renewable/TaxIncentRenew.asp#15-32-201

 

Contact:

Public Information Officer
Montana Department of Revenue
P.O. Box 5805
Helena, MT 59604-5805
Phone: (406) 444-6900
Web site:
http://www.state.mt.us/revenue/css/default.asp

 

 

 

C.      Residential Alternative Energy System Tax Credit

 

 

Summary:

 

Residential taxpayers who install an energy system using a recognized non-fossil form of energy on their home after 12/31/01 are eligible for a tax credit equal to the amount of the cost of the system and installation of the system, not to exceed $500. The tax credit may be carried over for the next four taxable years.  
 
Recognized non-fossil forms of energy generation means:  
1. A system that captures energy or converts energy sources into usable sources, including electricity, by using:

solar energy, including passive solar systems;  

wind;  

solid waste;  

the decomposition of organic wastes;  

geothermal;  

fuel cells that do not require hydrocarbon fuel; or  

an alternative energy system;

2. A system that produces electric power from biomass or solid wood wastes; or  
3. A small system that uses water power by means of an impoundment that is not over 20 acres in surface area.

 

Contact:

 

Kathi Montgomery
Montana Department of Environmental Quality
Planning, Prevention, and Assistance
1100 North Last Chance Gulch
PO Box 200902
Helena, MT 59620
Phone: (406) 841-5243
Fax: (406) 444-6836
E-Mail:
[email protected]
Web site: http://www.deq.state.mt.us/ppa/

 

 

Information Specialist – MT Dept. of Rev.
Montana Department of Revenue
P.O. Box 5805
Helena, MT 59604-5805
Phone: (406) 444-6900
Web site:
http://www.state.mt.us/revenue

FEDERAL TAX CREDITS FOR ENERGY EFFICIENCY

Tax credits are available for qualified solar water heating and photovoltaic systems. The credits are available for systems placed in service” from January 1, 2006 through December 31, 2016. The tax credit is for 30% of the cost of the system, up to $2,000. After December 31, 2008, this $2,000 cap will be removed for photovoltaic systems (but not solar water heaters). This credit is completely separate from the $500 home improvement credit.

 

Contact:

 

Public Information – IRS
Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, DC 20224
Phone: (800) 829-1040
Web site:
http://www.irs.gov

_____________________________________________________________________________________

ENERGY STAR : (Federal $500 Home Improvement Credit)

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits#c1

Home Improvements

Home improvement tax credits are now available for home improvements “placed in service” from January 1, 2009 through December 31, 2009.

Home improvement tax credits are available for insulation, replacement windows, water heaters, certain high efficiency heating and cooling equipment, and biomass stoves. See chart. The maximum amount that a taxpayer may claim from all of these tax credits combined is $500 over the lifetime of the tax credit (2006, 2007 & 2009).

If you are building a new home, you can qualify for the tax credit for photovoltaics, solar water heaters, small wind systems and fuel cells, but not the tax credits for windows, doors, insulation, roofs, HVAC, or non-solar water heaters. The Internal Revenue Service (IRS) guidance for consumers: IRS Notice 2006-26

 

Product Category

Product Type

Tax Credit Specification

Tax Credit

Notes

Windows & Doors

Exterior Windows and Skylights

ENERGY STAR qualified OR meets IECC1

10% of cost, up to $2002 for all windows, skylights and storm windows

All ENERGY STAR labeled windows and skylights qualify for tax credit.Learn more about ENERGY STAR qualified windows and skylights.

*        Installation costs are not included.

*        For tax purposes, save your receipt and either the ENERGY STAR label from all your new windows OR the Manufacturer’s Certification Statement.

*        Must be “placed into service” between Jan. 1–Dec. 31, 2009.

*        Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Insulation

Insulation

Meets 2000 IECC & Amendments

10% of cost, up to $5002

*        For insulation to qualify, its primary purpose must be to insulate. (example: vapor retarders are covered, siding does not qualify).

*        Must be expected to last 5 years OR have a 2 year warranty

*        Installation costs are not included.

*        Manufacturer’s Certification Statement3 required.

*        For tax purposes, save your receipt and the Manufacturer’s Certification Statement.

*        Must be “placed into service” between Jan. 1–Dec. 31, 2009.

*        Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

HVAC

Central A/C

Split Systems:
EER >=12.5
SEER >= 15

Package systems:
EER >= 12
SEER >= 14

$3002

For a list of qualified products, go to the Consortium for Energy Efficiency product directory , click on the Air Conditioners and in the “CEE Tier” enter “Residential Tier 2.”

Note — not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR specification:
Split Systems: EER >= 12 & SEER >= 14.5
Package systems: EER >= 11 & SEER >= 14

*        Manufacturer’s Certification Statement3 required.

*        For tax purposes, save your receipt and the Manufacturer’s Certification Statement.

*        Must be “placed into service” between Jan. 1–Dec. 31, 2009.

*        Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Air Source Heat Pumps

HSPF >= 9
EER >= 13
SEER >= 15

$300²

Note — not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR specification:
Split systems: HSPF >= 8.2 & EER >= 11.5 & SEER >= 14
Package systems: HSPF >= 8 & EER >= 11 & SEER >= 14

*        Manufacturer’s Certification Statement³ required.

*        For tax purposes, save your receipt and the Manufacturer’s Certification Statement.

*        Must be “placed into service” between Jan. 1–Dec. 31, 2009.

*        Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Geo-Thermal Heat Pump

Same criteria as ENERGY STAR:

Closed Loop:
EER >= 14.1
COP >= 3.3

Open Loop:
EER >= 16.2
COP >= 3.6

Direct Expansion:
EER >= 15
COP >= 3.5

30% of the cost, up to $2,000.

All ENERGY STAR labeled geo-thermal heat pumps qualify for the tax credit.

*        Manufacturer’s Certification Statement3 required.

*        For tax purposes, save your receipt and the Manufacturer’s Certification Statement.

*        Use IRS Form 5695

*        Must be “placed into service” between Jan. 1, 2008–Dec. 31, 2016.

Gas, Oil, Propane Furnace or Hot Water Boiler

Furnaces:
AFUE >= 95

Boiler:
AFUE >= 95

$1502

For a list of qualifying products go to the Gas Appliance Manufacturing Association

Note — not all ENERGY STAR products will qualify for the tax credit.

ENERGY STAR specification:
Furances: AFUE >= 90
Boilers: AFUE >= 85

*        Manufacturer’s Certification Statement3 required.

*        For tax purposes, save your receipt and the Manufacturer’s Certification Statement.

*        Must be “placed into service” between Jan. 1–Dec. 31, 2009.

*        Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Advanced Main Air Circulating Fan

No more than 2% of furnace total energy use

$502

For a partial list of qualifying products go to the Gas Appliance Manufacturing Association

*        Manufacturer’s Certification Statement3 required.

*        For tax purposes, save your receipt and the Manufacturer’s Certification Statement.

*        Must be “placed into service” between Jan. 1–Dec. 31, 2009.

*        Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Water Heaters

Gas, Oil, Propane Water Heater

Energy Factor >= 0.80
or a thermal efficiency of at least 90%.

$3002

Note: ENERGY STAR qualified high-efficiency gas storage water heaters will not qualify for the tax credit. All ENERGY STAR qualified whole-home gas tankless and gas condensing models will qualify.

ENERGY STAR criteria:

Whole-Home Tankless: Energy Factor >= 0.82
Gas Condensing: Energy Factor >= 0.8

For a partial list of qualifying products go to the Gas Appliance Manufacturing Association

*       Manufacturer’s Certification Statement3 required.

*       For tax purposes, save your receipt and the Manufacturer’s Certification Statement.

*       Must be “placed into service” between Jan. 1–Dec. 31, 2009.

*       Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Electric Heat Pump Water Heater

Same criteria as ENERGY STAR: Energy Factor >= 2.0

$3002

All ENERGY STAR qualified electric heat pump water heaters qualify for the tax credit.

*       Manufacturer’s Certification Statement3 required.

*       For tax purposes, save your receipt and the Manufacturer’s Certification Statement.

*       Must be “placed into service” between Jan. 1–Dec. 31, 2009.

*       Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Biomass Stove

Biomass Stove

Stove which burns biomass fuel5 to heat a home or heat water.

Thermal efficiency rating of at least 75%.

$300

*       Manufacturer’s Certification Statement3 required.

*       Must be “placed into service” between Jan. 1–Dec. 31, 2009.

*       Use IRS Tax Form 5695 (version 2009). This form should be available in late 2009 or early 2010.

Solar Energy Systems

Solar Water Heating

*       At least half of the energy generated by the “qualifying property” must come from the sun. Homeowners may only claim spending on the solar water heating system property, not the entire water heating system of the household.

*       The credit is not available for expenses for swimming pools or hot tubs.

*       The water must be used in the dwelling.

*       The system must be certified by the Solar Rating and Certification Corporation (SRCC).

30% of cost, up to $2,000

*       Use IRS Form 5695

*       Must be placed in service before December 31, 2016.

Photovoltaic Systems

Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement.

30% of cost, up to $2,000. After January 1, 2009 the $2,000 cap no longer applies.

*       Use IRS Form 5695

*       Must be placed in service before December 31, 2016.

Small Wind Energy Systems

Small Wind Energy Systems

 

30% of the cost, up to $500 per half kW of capacity (not to exceed $4,000)