Montana Energy Conservation Installation Credit
Extracted from PDF file 2016-montana-form-enrg-c.pdf, last modified June 2012
Energy Conservation Installation CreditCLEAR FORM MONTANA ENRG-C Rev 06 16 2016 Energy Conservation Installation Credit 15-32-101 through 15-32-109, MCA Your First Name and Initial Last Name Spouse’s First Name and Initial Last Name Social Security Numbers - - - - 1. Enter the physical address of the building where the energy conservation installation occurred...................... 1. 2. Enter the date the energy conservation installation was completed............................................................... 2. 3. Enter the type of investment, e.g., insulation, windows, doors, heating systems.................................................. 3. Complete lines 4 through 10 to determine your energy conservation installation credit for 2016. This is a nonrefundable single year credit that cannot exceed your income tax liability and cannot be carried forward to subsequent years. If you are married and both you and your spouse paid the expenses for the energy conservation investment, combine these expenses on lines 4 and 5 to determine the amount of each spouse’s credit. If you and another individual (or individuals) to whom you are not married paid the energy conservation expenses, enter on lines 4 and 5 only those expenses that are attributable to you. Do not include on lines 4 and 5 those energy conservation expenses attributed to the other individuals. 4. Enter the total amount you paid for capital investments, installed and placed in service in 2016, in the physical attributes of a building for energy conservation purposes (see instructions)............................................................................................................................4. 5. Enter the total amount you paid for the installation of a water, heating or cooling system, installed and placed in service in 2016, in a building for energy conservation purposes (see instructions)............................................................................................................................5. 6. Add lines 4 and 5 and enter the result here. This is your total expenditure for energy conservation purposes made in 2016 �������������������������������������������������������������������������������������������6. 7. Multiply the amount on line 6 by 0.25 (25%) and enter the result here.......................................... 7. 8. If the energy conservation investment was paid only by you, enter the smaller of the amount on line 7 or $500. This is your energy conservation installation credit. Enter here and on Form 2, Schedule V........................................................................................................................8. 9. If the energy conservation investment was paid by both you and your spouse and your filing status is married filing jointly, enter here the smaller of the amount on line 7 or $1,000. This is your energy conservation installation credit for you and your spouse. Enter here and on Form 2, Schedule V........................................................................................................................9. Column A Column B 10. If the energy conservation investment was paid by both you and your spouse and your filing status is married filing separately on the same form, or on separate forms, your total credit is the smaller of the amount reported on line 7 above or $500 for each spouse. Enter in columns A and B the amount allocated to each spouse. Neither spouse may claim more than $500. The total of both spouses’ credit on line 10 cannot exceed the amount on line 7. This is the energy conservation installation credit as allocated for you and your spouse. Enter here and on Form 2, Schedule V............................................10. 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-C Instructions What capital investments can I make to a building that will qualify for the energy conservation credit? To qualify for this credit, your investment has to be made to the building itself. The following investments qualify for the energy conservation credit. • • • • • • • • • • • • • • Insulation of floors, walls, ceilings and roofs in existing buildings Insulation in the floors, walls, ceilings and roofs of a new building, to the extent that it exceeds the current International Energy Conservation Code with Montana amendments as adopted by the Montana Department of Labor and Industry Insulation of heating and air conditioning pipes, insulation and sealing of heating, ventilation and air conditioning (HVAC) ducts, and insulation of hot water heater and tanks Windows that result in reduction of energy consumption Storm doors and insulated exterior doors Caulking and weather stripping of an existing structure (except when it is a standard component in the construction or maintenance of the structure such as the chinking and caulking in a log home) Devices which limit the flow of hot water from shower heads and lavatories Heat recovery ventilators (HRV) Glass fireplace doors installed in an existing conventional fireplace Exhaust fans used to reduce air conditioning requirements Replacement of incandescent light fixtures with light fixtures of a more efficient type such as those with electronic ballast and compact or linear fluorescent lamps and LED lights Lighting controls with cutoff switches to permit selective use of lights Programmable thermostats Installation of new domestic water heaters, heating or cooling systems Are there certain ratings or specifications my investment must meet in order to qualify for the credit? Yes. Some types of investments must meet certain ratings or specifications to qualify for the credit. Refer to the chart that follows for information about any requirements there may be for your investment. Type of Investment Exterior windows and skylights Specification to Qualify for the Credit U-factor less than or equal to 0.30 Storm windows U-factor less than or equal to 0.30 when measured in combination with the exterior window over which it is installed Exterior doors U-factor less than or equal to 0.30 Storm doors U-factor less than or equal to 0.30 when measured in combination with the wood door over which it is installed Split system central air conditioning EER greater than or equal to 13 and SEER greater than or equal to 16 Package system central air conditioning EER greater than or equal to 12 and SEER greater than or equal to 14 Split system air source heat pumps HSPF greater than or equal to 8.5, EER greater than or equal to 12.5 and SEER greater than or equal to 15 Package system air source heat pumps HSPF greater than or equal to 8, EER greater than or equal to 12.5 and SEER greater than or equal to 14 Natural gas or propane furnace AFUE greater than or equal to 95 Oil furnace AFUE greater than or equal to 90 Hot water boiler AFUE greater than or equal to 90 Advanced main air circulating fan No more than 2% of total energy use Heat recovery ventilators CSA C439-00 standard Gas, oil, or propane water heater Energy factor greater than or equal to 0.82 or thermal efficiency of at least 90% Electric heat pump water Energy factor greater than or equal heater to 2.0 What are some examples of investments that will NOT qualify for the energy conservation credit? In general, any investment for repairs or maintenance to a building or residence will not qualify. The following are examples of expenditures that will NOT qualify for the energy conservation credit. This list is not all-inclusive. • Installing carpet • Reshingling or repairing a roof • Metal roof with pigmented coating or asphalt roof with cooling granules • Paint • Replacing or repairing a failing foundation • Siding • Portable air conditioners or generators • Space heaters • Gas fireplaces and fireplace inserts • Household appliances such as ENERGY STAR stoves, washers and dryers. When can I take the energy conservation installation credit? When is installation considered complete? The energy conservation credit is available in the tax year that the taxpayer paid for and completed the installation of the energy conservation investments. For investments in an existing building, the credit must be taken in the year the installation of the energy conserving product is complete. For example: The taxpayer purchased a qualifying hot water heater in year one but did not have it installed until spring of year two. The energy conservation credit is available in year two only and the taxpayer can include the money expended in year one to purchase the hot water heater in calculating the credit. For new construction, the energy conservation credit is available in the tax year that the construction is completed. For example: The taxpayer began construction of a new home in year one and finished it in year two. The taxpayer made investments in energy conservation measures that qualify for the credit. The energy conservation credit is available in year two only and the taxpayer is not entitled to an energy conservation credit for year one even though the construction began in year one. I installed a high efficiency central air-conditioning system in my home that did not have a central airconditioning system previously. Can I claim the credit? Yes. You may claim the credit if the system meets or exceeds the applicable specification listed in the chart on the previous page. I am constructing a new home. Can I claim the energy conservation installation credit? Yes, you can. For doors, windows and insulation installed on or after January 1, 2015, only the additional cost expended to exceed the requirements of the IECC as amended and adopted by the Montana Department of Labor and Industry qualifies for the credit. You calculate the additional cost by comparing the actual amount expended to the estimated, retail cost of installing an item that is substantially similar in style and design and that also meets the required rating. For example, the credit cannot be based on comparing the retail cost of an ornate, solid-wood door to the cost of a less ornate, fiberglass door. All other investments made in items as part of constructing new buildings or dwellings will qualify for the credit as long as the items meet or exceed the applicable specification listed in the chart on the previous page. If an item meets or exceeds the applicable specification, both the cost of the item itself and any basic installation costs qualify. Is there another way to calculate the credit for investments made while constructing a new home? Yes, there is another option. The purchase by the first owner or construction by an individual of a site-built home can be considered the equivalent of investing $2,000 in energy conserving measures if the home has been certified under either the ENERGY STAR program or the Montana Building Industry’s Green Build program. A home certified under the Green Build program must attain either a Gold level or a Silver level with an ENERGY STAR heating system in order to calculate the credit in this manner. The resulting credit of $500 (25% of $2,000) may be split among all individuals who purchased the home. The resale of a home certified under either program does not qualify for any credit. Contact the Department of Revenue or review the administrative rules for more information. My spouse and I replaced the windows and doors in our home with those that will qualify us for the energy conservation installation credit. Are we both entitled to the tax credit? Yes, you are. If your energy conservation investments were $4,000 or more and both you and your spouse paid for the investment, you are each entitled to a $500 energy conservation installation credit. If you are filing jointly with your spouse, you may claim $1,000 as your energy conservation installation credit. If you are filing separately with your spouse, each spouse’s energy conservation installation credit is limited to the smaller of $500 or 25% of his or her investment. I qualify for the energy conservation installation credit this year, but I am unable to claim the full amount of my credit because my income tax liability is less than $500. Can I carry my unused credit forward? No, you cannot. The energy conservation installation credit is a nonrefundable single year credit. You cannot carry forward any unused portion of your credit to future tax years. I installed new windows and exterior doors in my home for a total expenditure of $10,000. My 25% energy conservation installation credit is $2,500. Am I eligible for the full $2,500 credit? No, you are not. Your energy conservation installation credit is limited to the smaller of $500 or 25% of the qualified investments made during the tax year. You are not eligible to carry any of the excess credit forward to future tax years. What type of records should I retain to document my eligible expenses for the energy conservation installation credit? You should retain invoices, sales agreements or receipts that document work done and the equipment installed. Your records should clearly state the equipment manufacturer, make and model number of any installed heating and cooling systems, windows, doors, light fixtures, thermostats, etc., that will determine the qualifications for this tax credit. Administrative Rules of Montana: 42.4.201 through 42.4.209 Questions? Please call us toll free at (866) 859-2254 (in Helena, 444-6900).
More about the Montana Form ENRG-C Individual Income Tax Tax Credit TY 2016
We last updated the Energy Conservation Installation Credit in January 2017, so this is the latest version of Form ENRG-C, fully updated for tax year 2016. You can download or print current or past-year PDFs of Form ENRG-C directly from TaxFormFinder. You can print other Montana tax forms here.
Other Montana Individual Income Tax Forms:
|Form Code||Form Name|
|Form 2EC||Montana Elderly Homeowner/Renter Credit|
|Form 2 Instructions||Individual Income Tax Instructional Booklet|
|Form 2||Montana Individual Income Tax Return|
|Form ENRG-B||Alternative Energy System Credit|
|Form 2 SCHedule III||Montana Itemized Deductions|
Montana usually releases forms for the current tax year between January and April. We last updated Montana Form ENRG-C from the Department of Revenue in January 2017.
Form ENRG-C 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-C
We have a total of six past-year versions of Form ENRG-C in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
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