Business Tax Incentives, Grants, Loans, and Performance Contracting

State Incentives

Energy Conservation Investment (MCA 15-32-103)
State tax deduction for a capital investment in a building for energy conservation purposes that is not financed by state, federal, or private grant funds for energy conservation. The taxpayer may deduct from the gross corporate income up to $3,600 for commercial building investment.
http://mt.gov/revenue/energyconservationcredit.asp

Federal Incentives

Energy-Efficient Commercial Buildings Tax Deduction
Federal corporate tax deduction, $0.30 - $1.80 per square foot, depending on technology and amount of energy reduction. The eligible efficiency investments include: equipment insulation, water heaters, lighting, lighting controls/sensors, chillers, furnaces, boilers, heat pumps, air conditioners, caulking/weather-stripping, duct/air sealing, building insulation, windows, doors, siding, roofs, comprehensive measures/ whole building.
www.lightingtaxdeduction.org/tax_deduction.html

Business Energy Investment Tax Credit (ITC)
Tax Credit for the use/ installation of renewable generation technologies, the tax payer may deduct 10-30% of expenditures. Eligible technologies include: solar water heat, solar space heat, solar thermal electric, solar thermal process heat, photovoltaics, wind biomass, geothermal electric, fuel cells, geothermal heat pumps, chp/cogeneration, solar hybrid lighting, direct-use geothermal, microturbines. Equipment must be installed prior to December 1st, 2016.
www.irs.gov/newsroom/article/0,,id=209564,00.html
www.irs.gov/pub/irs-pdf/f8835.pdf

U.S. Department of Treasury - Renewable Energy Grants
Payment in lieu of tax credit for the use/ installation of renewable generation technologies, the tax payer will receive 10-30% of expenditures as a grant. Eligible technologies include: solar water heat, solar space heat, solar thermal electric, solar thermal process heat, photovoltaics, wind biomass, geothermal electric, fuel cells, geothermal heat pumps, chp/cogeneration, solar hybrid lighting, direct-use geothermal, microturbines. Equipment must be installed prior to December 1 st, 2016.
www.treas.gov/recovery/1603.shtml

State Loans

Alternative Energy Revolving Loan Program
The Alternative Energy Revolving Loan Program (AERLP) provides loans to install alternative energy systems that generate energy for their own use and to apply efficiency technologies. The loan is available to commercial, residential, nonprofit, schools, and local government to fund investments including: solar water heat, photovoltaics, landfill gas, wind, biomass, geothermal heat pumps, direct-use geothermal, small hydroelectric, building insulation, windows, doors, and appliances. Loan terms of up to 10 years, 3.5% interest rate for 2009.
www.deq.state.mt.us/energy/Renewable/altenergyloan.asp

Federal Loans

U.S. Department of Energy - Loan Guarantee Program
Loans are available for projects employing renewable energy or those that avoid, reduce, or sequester greenhouse gas emissions. The program focuses on projects with total projects costs over $25 million.
www.lgprogram.energy.gov

Additional Funding

Energy Performance Contracting
Performance contracting is one way to evaluate possibilities for energy improvements in buildings and to finance the projects that save money. An extensive energy audit is conducted at your facility to identify energy saving opportunities and efficiency investments are recommended. The investments are paid for through the energy savings usually on a contract term of up to 10 years. If the savings are not realized, the energy service company absorbs the losses, not the facility.
www.deq.state.mt.us/Energy/EESchool/ESCO.asp

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