(1) Eligible investments for the energy conservation credit in new construction are the investments that exceed the requirements of the IECC with Montana amendments as described in ARM 42.4.206. The amount of credit can be calculated using one of the following provisions:

(a) The credit can be based on the actual additional amount expended to exceed the requirements of the IECC with the Montana amendments. For example, if a taxpayer installs an ENERGY STAR qualified furnace in a new construction project, the incremental cost of equipment and installation costs above a conventional furnace required by code qualifies for the energy conservation credit.

(b) The purchase by the first owner or construction of a new ENERGY STAR Qualified home can be considered the equivalent of investing $2,000 for energy conservation purposes resulting in a total credit of $500 ($2,000 * 25%). The $500 may be allocated among the individuals who purchased the home. Verification must be made by a third party accredited by the federal Environmental Protection Agency to rate homes under the ENERGY STAR program. The resale of an ENERGY STAR home does not qualify for the credit.

(2) For investments in existing buildings, a credit will be given for capital investments that are recognized to substantially reduce the waste or dissipation of energy, or reduce the amount of energy required for proper utilization of the building.

(3) A credit will not be allowed for capital investments that are directly used in a production or manufacturing processor rendering a service to customers.

(4) Only investments in buildings located in Montana qualify for the energy conservation credit.

(5) See ARM 42.4.118 for filing requirements.