(1) For energy generating systems that are integral to a structure's original construction, the energy generating system must be one that fits the description in 15-32-102 , MCA, and one that is either generally recognized as a nonfossil energy generating system (recognized by the Department of Environmental Quality or the alternative energy industry) or one that the applicant can demonstrate is energy generating.

(2) Systems that have been determined to be acceptable are:

(a) "Envelope houses" using a recognized nonfossil form of energy generation.

(b) Structures with energy systems qualifying under ARM 42.4.104 which have been installed as part of the original construction, such as solar greenhouses.

(3) Energy generating systems which are standard components of conventional structures do not qualify for the property tax exemption or the income tax credit.

(4) Components recognized as nonstandard are:

(a) The components necessary for energy generation and distribution in an "envelope house," such as the "envelope" area devoted solely to energy collection, storage, and distribution.

(b) Components as described in ARM 42.4.104.

(5) The predominant use of an applicant's system will be determined as other than energy generating if it does not meet the requirements described in ARM 42.4.104.

(6) In determining the amount of property tax exemption and the calculation of the income tax credit for energy generating systems that are integral to a structure's original construction, the following criteria must be met:

(a) The system must qualify for the property tax exemption and the income tax credit.

(b) The size, quality, grade, condition, and other characteristics of the structure should be determined and the structure valued as a conventional building with the energy system excluded from the appraisal.

(c) The energy components should be recorded on the property diagram on the appraisal record card for property tax exemption purposes.

(d) A notation should be made on the appraisal record card that property tax exemption for the energy generating portion of the system has been applied.

(7) The property tax exemption will apply by excluding the energy system from valuation for a period as determined in ARM 42.19.1104.