Questions & Answers

What is the Alternative Energy Systems Credit?

Nonfossil form of energy: You can claim a credit for the cost of purchasing and installing an energy system in your principal home that uses a recognized nonfossil form of energy such as, but not limited to, solar energy, wind energy, solid waste, and organic waste. Your total credit cannot exceed $500 per taxpayer. Any balance of your credit that is not used in 2021 can be carried forward and applied to future income tax liabilities for a period of four succeeding tax years. You are not allowed to claim both the Alternative Energy Systems Credit and the Geothermal Systems Credit for the same investment.

Low emission wood or biomass combustion: You can claim a credit for the cost of purchasing and installing an energy system using a low emission wood or biomass combustion device, such as a pellet or wood stove, in your principal home. You can also claim the credit for installing certain outdoor hydronic heaters or masonry heaters. Your total credit cannot exceed $500 per taxpayer. Any balance of your credit that is not used in 2021 can be carried forward and applied to future income tax liabilities for a period of four succeeding tax years.

For further instructions on the Alternative Energy Systems Credit, and to calculate this credit, see Montana Form ENRG-B . When you claim this credit, you will have to include a copy of Form ENRG-B with your tax return.

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