If you are a resident of Montana, you can claim a credit against your income tax liability for energy conservation investments that you made to your home or other buildings. Your credit is equal to 25% of your expenses for a maximum credit of up to $500 for the capital investments you made to your home or another building for energy conservation purposes or for the installation or replacement of a hot water heater or household heating or cooling system. If you are married, your spouse may also qualify for a credit of up to $500 as long as you both made qualifying capital investments. You will not qualify for this credit by simply switching to an energy source that is less expensive or free (investments of this nature may qualify for the alternative energy system credit).
For further instructions and a list of investments that qualify for the energy conservation credit, see Montana Form ENRG-C. In addition, please refer to our website at revenue.mt.gov for more information such as specific examples of what investments may or may not qualify. When you claim this credit, you will have to include a copy of Form ENRG-C with your tax return.