Administrative Rules of Montana › Department 42 - REVENUE › Chapter 42.4 - TAX CREDITS › Subchapter 42.4.41 - Alternative Energy Production - Income and Property Tax Incentives for Individuals and Corporations › Rule 42.4.4114 - ENERGY PRODUCTION OR DEVELOPMENT - PROPERTY TAX ABATEMENT ELIGIBILITY FOR NEW INVESTMENT IN THE CONVERSION, TRANSPORT, MANUFACTURE, RESEARCH, AND DEVELOPMENT OF RENEWABLE ENERGY, CLEAN COAL ENERGY, AND CARBON DIOXIDE EQUIPMENT AND FACILITIES

Current through Register Vol. 13, July 5, 2024
(1) The property
				owner of record, the property's owner's agent, or the operator of the
				qualifying property must apply to the Department of Environmental Quality (DEQ)
				for a certification of eligibility for equipment or facilities for which the
				abatement is sought. Upon review of the application, the DEQ shall provide the
				Department of Revenue (department) with a certification of eligibility for
				qualifying equipment or facilities.
(2) The department shall classify the
				property in the appropriate class of property and shall assess the qualifying
				facilities for which the certification is granted at 50% of its taxable value
				for the qualifying period which includes 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.
(3) For centrally
				assessed property, the department shall determine the market value of the
				property or equipment by multiplying the depreciated value of the approved
				class fourteen, fifteen, or sixteen qualifying equipment of facilities by a
				market to book ratio then multiplying by 0.50. The market to book ratio shall
				be determined by dividing the system or unit value after deduction of the
				exempt intangible personal property by the system net book value after
				deduction of the exempt intangible personal property. This value shall then be
				deducted from the Montana value and certified to the counties as class
				fourteen, fifteen, or sixteen property.
(4) For industrially assessed property, the
				department shall determine the market value of the qualifying industrially
				assessed property in accordance with ARM
				42.22.1309 and then multiply the
				qualifying property or equipment by 0.50.
(5) Upon revocation of a certification by the
				DEQ, the department will, if necessary, reclassify the property and assess the
				property at 100% of its taxable value beginning January 1 of the year or years
				for which the certification is revoked.
(6) If the department finds that a
				certification for a transmission line which was previously granted was based on
				an application that the applicant knew was false or fraudulent or subsequently
				revoked, the department must reclassify property as class nine under
				15-6-141, MCA. In addition, the
				department may assess the applicant for additional taxes, penalty, and interest
				from the time the certification was in effect.
15-24-3116, MCA; IMP,
					 15-6-141,
					 15-6-157,
					 15-6-158,
					 15-6-159,
					 15-24-3101,
					 15-24-3102,
					 15-24-3111,
					 15-24-3112,
					 15-24-3116,
					 MCA;