2023 Montana Code Annotated › Title 15. Taxation › Chapter 24. Special Property Tax Applications › Part 31. Property Related to Renewable Energy, New Energy Technology, and Clean Coal › 15-24-3111. Energy production or development -- tax abatement -- eligibility

15-24-3111. Energy production or development -- tax abatement -- eligibility.
(1) A facility listed in subsection (3), clean advanced coal research and development equipment, and renewable energy research and development equipment may qualify for an abatement of property tax liability pursuant to this part.
(2) (a) If the abatement is granted for a facility listed in subsection (3), the qualifying facility must be assessed at 50% of its taxable value for the qualifying period.
(b) If the abatement is granted for clean advanced coal research and development equipment or renewable energy research and development equipment, the qualifying equipment, up to the first $1 million of the value of equipment at a facility, must be assessed at 50% of its taxable value for the qualifying period. There is no abatement for any portion of the value of equipment at a facility in excess of $1 million.
(c) The abatement applies to all mills levied against the qualifying facility or equipment.
(d) A renewable diesel production facility or sustainable aviation fuel production facility, or both, may not receive the abatement provided for in this section during the same tax year that the new or expanding industry property tax abatement provided for in 15-24-1402 is claimed on the same property.
(3) Subject to subsections (4) and (5), the following facilities or property may qualify for the abatement allowed under this part:
(a) biodiesel production facilities;
(b) biogas production facilities;
(c) biomass gasification facilities;
(d) coal gasification facilities for which carbon dioxide from the coal gasification process is sequestered;
(e) ethanol production facilities;
(f) geothermal facilities;
(g) renewable diesel production facilities;
(h) renewable energy manufacturing facilities;
(i) clean advanced coal research and development equipment and renewable energy research and development equipment;
(j) a natural gas combined cycle facility that offsets a portion of the carbon dioxide produced through carbon credit offsets;
(k) transmission lines and associated equipment and structures classified in 15-6-157;
(l) converter stations classified under 15-6-159;
(m) carbon sequestration equipment as defined in 15-6-158;
(n) pipelines classified under 15-6-158; and
(o) sustainable aviation fuel production facilities.
(4) (a) In order to qualify for the abatement under this part, a facility listed in subsection (3) must meet the following requirements:
(i) commencement of construction of the facility must occur after June 1, 2007; and
(ii) the standard prevailing rate of wages for heavy construction, as provided in 18-2-414, must be paid during the construction phase of the facility.
(b) In order to qualify for the abatement under this part, clean advanced coal research and development equipment and renewable energy research and development equipment must be placed into service after June 30, 2007.
(c) For the facility to qualify under subsection (3)(d), the carbon dioxide produced from the gasification process must be sequestered at a rate that is practically obtainable but may not be less than 65%.
(d) Integrated gasification combined cycle facilities for which a permit under Title 75, chapter 2, is applied for after December 31, 2014, do not qualify under subsection (3)(d).
(e) To qualify under subsection (3)(j), the facility shall offset carbon dioxide emissions by the percentage determined in 15-24-3116.
(5) To qualify for an abatement, the facility or clean advanced coal research and development equipment and renewable energy research and development equipment must be certified as provided in 15-24-3112.
(6) Upon termination of the qualifying period, the abatement ceases and the property for which the abatement had been granted must be assessed at 100% of its taxable value.
(7) For the purposes of this section, "qualifying period" means the construction period and the first 15 years after the facility commences operation or the clean advanced coal research and development equipment or renewable energy research and development equipment is purchased. The total time of the qualifying period may not exceed 19 years.
History: En. Sec. 4, Ch. 2, Sp. L. May 2007; amd. Sec. 9, Ch. 277, L. 2009; amd. Sec. 5, Ch. 692, L. 2023.