(1) Each September, the department will review ARM 42.4.204 to consider other capital investments that qualify for the energy conservation credit for the following tax year.

(2) The department will consider any information received that may indicate that capital investments should be added or deleted from the capital investments in ARM 42.4.204. The department will consult with the Department of Environmental Quality to determine whether capital investments should be added or deleted.

(3) The following standards for items that do not qualify for the credit will be applied in the annual review of capital investments. The examples under each standard are provided to aid the public in understanding the type of items that do not qualify for the credit.

(a) Components of conventional buildings will typically not qualify for the energy conservation credit. Examples of such components that do not qualify for the credit include:

(i) carpeting, carpet padding, or other flooring of any type;

(ii) paint;

(iii) roof vents;

(iv) awnings that are not a component of a qualified "passive solar system";

(v) garage doors, whether insulated or not, that are installed in an existing or new building that does not consume any energy other than for lighting and the operation of items such as appliances or power tools; or

(vi) any item with an R-value of less than 1.

(b) Expenditures for maintenance and repairs to a building do not qualify for the credit. Examples of such expenditures include:

(i) patching holes;

(ii) replacing a foundation;

(iii) replacing siding;

(iv) replacing or reshingling a roof; or

(v) replacing existing asbestos insulation around heating pipes with other insulation.

(c) Items that are not improvements to real property do not qualify for the credit. Examples of such items include:

(i) space heaters;

(ii) portable air conditioners;

(iii) appliances such as ovens, stoves, refrigerators, dishwashers, clothes washers, and dryers that are not attached fixtures are not capital expenditures, and therefore do not qualify for the credit.

(d) Any item that requires periodic human action, whether on a regular or irregular basis, to achieve energy savings, does not qualify for the credit. Examples of such items include:

(i) nonprogrammable thermostats;

(ii) moveable shades;

(iii) decks; and

(iv) outdoor grills installed as fixtures to the real estate.