Montana Geothermal System Credit
Extracted from PDF file 2020-montana-form-enrg-a.pdf, last modified August 2020
Geothermal System CreditForm ENRG-A V1 8/2020 2020 Geothermal System Credit 15-32-115, MCA CLEAR FORM Name (as it appears on your Montana tax return) Social Security Number - - OR Federal Employer Identification Number - Qualified contractors use columns A - C; Qualified homeowners use column C only. A B C 1. Enter the physical address of the home where the geothermal system was installed 1. 2. Enter the date the installation of your geothermal system was completed 2. 3. Enter the brand name and model number of the geothermal system that you installed 3. If filing for a business and more than three systems were installed, include additional schedules. Complete lines 4 through 7 only for the year that you installed your geothermal system(s) in a primary dwelling. 4. Enter the installation cost of the geothermal system 4. 5. Enter the amount of any grants that you received for the installation of the geothermal system 5. 6. Subtract line 5 from line 4 6. 7. Enter the smaller of line 6 or $1,500 7. 8. Add the amounts on line 7 of each column including any amounts on additional schedules. Enter the amount here. This is your current year geothermal system credit. 8. Where to Report Your Credit ►Individuals: Form 2, Nonrefundable Credits Schedule ►C corporations: Form CIT, Schedule C Carryforward of Geothermal System Credit from a Prior Year Complete lines 9 through 11 only if you are a resident individual taxpayer and you are carrying forward your unused geothermal system credit from a prior year. If you are filing as a C corporation, include the carryforward on Form CIT, Schedule C. 9. Enter the amount of your geothermal system credit originally allowed. This cannot be greater than $1,500 9. 10. Enter the amount of your geothermal system credit or credits previously claimed 10. 11. Subtract line 10 from line 9 and enter the result here and on Form 2, Nonrefundable Credits Schedule. This is your unused geothermal system credit. 11. If you file your Montana tax return electronically, you do not need to mail this form to us unless we ask you for a copy. When you file electronically, you represent that you have retained the required documents in your tax records and will provide them upon the department’s request. Form ENRG-A Instructions What is a geothermal system? A geothermal system is a system that transfers energy either from the ground by a closed loop, or from ground water by an open loop, for the purpose of heating or cooling a residential building. What installation costs are allowed when claiming the credit? Your allowed installation costs include: ● Trenching, well drilling, casing and downhole heat exchangers ● Piping, control devices and pumps that move heat from the earth to heat or cool the building ● Ground source or ground coupled heat pumps ● Liquid-to-air heat exchanger, ductwork and fans installed with a ground heat well that pump heat from a well into a building ● Design and labor Who qualifies for the geothermal system credit? The geothermal system credit is available to Montana residents who complete the installation of a geothermal system in their principal dwelling. The credit is also available to contractors that install a geothermal system in a new residence they are building for sale. Only builders that are individuals or C corporations can claim the credit. This credit is not available to builders that are partnerships or S corporations. Only one credit is allowed for a residence so the builder and purchaser of a new residence with a qualifying geothermal system cannot both claim the credit. I am an individual who purchased a newly constructed home with a geothermal system installed by the builder. Am I entitled to the credit? No. Because you did not install and pay for the system, you are not entitled to the credit. The builder may be entitled to the credit. I am a contractor or builder and have been hired to construct a residence. The plans include installing a geothermal system. Am I entitled to the credit? No. The individual for whom you are installing the system may be entitled to the credit. I am an individual purchasing a “spec house” that is still under construction. The current plans do not include a geothermal system. If I have the plans changed to include a system, can I claim the credit? Yes. As long as you pay for the additional costs associated with installing the geothermal system, you are entitled to the credit. I am unable to claim the full amount of my geothermal credit because my income tax liability is less than $1,500. Can I carry my unused credit forward? Yes. This credit is considered a nonrefundable carryover credit that you can carry forward for seven succeeding tax years. If you are an individual, complete lines 9, 10 and 11 to determine the unused amount of your geothermal credit that can be carried forward from a prior year. If you are filing as a C corporation, include the carryforward on Form CIT, Schedule C. You also must include a detailed schedule of your separate entity geothermal system credit carryforward, if applicable. Your total credit reported in the year of installation and in subsequent years cannot exceed the maximum credit of $1,500. My spouse and I jointly own our home. Can we both claim the geothermal system credit? Yes, you can, but the credit is limited to $1,500 for the installation of a geothermal system in your principal home. You may allocate the credit between you and your spouse in any manner you choose. I made repairs to my geothermal system this year. Am I entitled to claim this credit for the cost of my repairs? No. Repairs to your existing geothermal system are not installation costs that entitle you to a geothermal system credit. Please visit our website at MTRevenue.gov for additional information on energy-related tax relief options. The website includes answers to frequently asked questions and links to related sites. Administrative Rules of Montana: 42.4.104 and 42.4.121 Questions? Call us at (406) 444-6900, or Montana Relay at 711 for the hearing impaired.
More about the Montana Form ENRG-A Individual Income Tax Tax Credit TY 2020
This form is for those who recently installed one or more geothermal systems.
We last updated the Geothermal System Credit in March 2021, so this is the latest version of Form ENRG-A, fully updated for tax year 2020. You can download or print current or past-year PDFs of Form ENRG-A directly from TaxFormFinder. You can print other Montana tax forms here.
Other Montana Individual Income Tax Forms:
|Form Code||Form Name|
|Form 2||Montana Individual Income Tax Return|
|Form IT Payment Voucher||Individual Income Tax Payment Voucher|
|Form 2 Instructions||Individual Income Tax Instructional Booklet|
|Form AMD (Obsolete)||Montana Individual Income Tax Amended Return Reconciliation|
|Form 2EC||Montana Elderly Homeowner/Renter Credit (OBSOLETE)|
Montana usually releases forms for the current tax year between January and April. We last updated Montana Form ENRG-A from the Department of Revenue in March 2021.
Form ENRG-A is a Montana Individual Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Montana Form ENRG-A
We have a total of ten past-year versions of Form ENRG-A in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
While we do our best to keep our list of Montana Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.