Renewable Energy Systems Exemption
Administered by Montana Department of Revenue
Montana exempts renewable energy systems from property taxes for 10 years after installation, allowing up to $20,000 in exempted value for single-family homes on systems like solar panels, wind turbines, geothermal heat pumps, and small hydropower. To claim the exemption, file Montana Department of Revenue Form AB-14.
This program incentivizes renewable energy installations by removing property tax burden for your customers for a decade, covering a wide range of technologies from solar and wind to geothermal and biomass systems. Customers can exempt up to $20,000 (single-family) or $100,000 (multi-family and non-residential) in system value, making your projects more financially attractive.
This 10-year property tax exemption allows Class 4 property owners to exclude qualifying renewable and low-emission biomass systems from assessed value (which would otherwise be taxed at 2.54% in 2013 or 2.47% thereafter), with caps of $20,000 for single-family residential and $100,000 for multi-family/non-residential structures. Claimed via Montana Department of Revenue Form AB-14, it covers diverse technologies across all sectors to encourage renewable energy adoption.
Program details
- Program ID
- 154
- Last updated
- 10/8/2025
Eligibility
- Sectors
- commercial industrial residential agricultural multifamily residential
- Technologies
- solar - passive solar water heat solar space heat geothermal electric solar thermal electric solar thermal process heat solar photovoltaics wind (all) biomass geothermal heat pumps municipal solid waste landfill gas solar pool heating wind (small) hydroelectric (small) geothermal direct-use anaerobic digestion fuel cells using renewable fuels
Program summary
Montana's property tax exemption for recognized non-fossil forms of energy generation and low emission wood or biomass combustion devices may be claimed for 10 years after installation of the property. The exemption is allowed for up to $20,000 in value for single-family residential dwellings and up to $100,000 in value for multi-family residential dwellings or non-residential structures. This property is class 4 property and otherwise would be taxed on 2.54% of assessed value in tax year 2013 and 2.47% in tax years after 2013.
Recognized forms of energy generation include solar photovoltaics, passive solar, wind, solid waste, decomposition of organic wastes, geothermal, small hydropower plants, low-emission wood or biomass combustion systems, and fuel cells that do not require hydrocarbon fuel.
Use Montana Department of Revenue Form AB-14 to claim this exemption.
Contact & resources
- Contact email
- DORCustomerAssistance@mt.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
