Montana Code 15-24-3111. Energy production or development — tax abatement — eligibility
15-24-3111. Energy production or development — tax abatement — eligibility. (1) A facility listed in subsection (3), clean advanced coal research and development equipment, and renewable energy research and development equipment may qualify for an abatement of property tax liability pursuant to this part.
Terms Used In Montana Code 15-24-3111
- Clean advanced coal research and development equipment: means equipment used primarily for research and development of emerging methods for pollution control, carbon capture, and carbon sequestration. See Montana Code 15-24-3102
- Coal gasification: means a process that converts coal into a synthesis gas composed of carbon monoxide, hydrogen, and other gases. See Montana Code 15-24-3102
- Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
- Property: means real and personal property. See Montana Code 1-1-205
- Renewable diesel: means a biomass-derived fuel that is suitable for use in diesel engines that is hydrocarbon produced by hydrotreating and also through gasification, pyrolysis, or other biochemical and thermochemical technology, or any combination of these technologies. See Montana Code 15-24-3102
- Renewable energy: includes the following:
(a)solar energy;
(b)wind energy;
(c)geothermal energy;
(d)energy from the conversion of biomass;
(e)energy from biogas;
(f)energy from fuel cells that do not require a petroleum-based fuel;
(g)energy from waste heat; and
(h)cellulosic ethanol. See Montana Code 15-24-3102
- Renewable energy research and development equipment: means equipment used primarily for research and development of the efficient use of renewable energy sources. See Montana Code 15-24-3102
- Sustainable aviation fuel: means an aviation fuel derived from renewable resources that enables a reduction in net life cycle carbon dioxide emissions compared to conventional fuels. See Montana Code 15-24-3102
(2)(a) If the abatement is granted for a facility listed in subsection (3), the qualifying facility must be assessed at 50% of its taxable value for the qualifying period.
(b)If the abatement is granted for clean advanced coal research and development equipment or renewable energy research and development equipment, the qualifying equipment, up to the first $1 million of the value of equipment at a facility, must be assessed at 50% of its taxable value for the qualifying period. There is no abatement for any portion of the value of equipment at a facility in excess of $1 million.
(c)The abatement applies to all mills levied against the qualifying facility or equipment.
(d)A renewable diesel production facility or sustainable aviation fuel production facility, or both, may not receive the abatement provided for in this section during the same tax year that the new or expanding industry property tax abatement provided for in 15-24-1402 is claimed on the same property.
(3)Subject to subsections (4) and (5), the following facilities or property may qualify for the abatement allowed under this part:
(a)biodiesel production facilities;
(b)biogas production facilities;
(c)biomass gasification facilities;
(d)coal gasification facilities for which carbon dioxide from the coal gasification process is sequestered;
(e)ethanol production facilities;
(f)geothermal facilities;
(g)renewable diesel production facilities;
(h)renewable energy manufacturing facilities;
(i)clean advanced coal research and development equipment and renewable energy research and development equipment;
(j)a natural gas combined cycle facility that offsets a portion of the carbon dioxide produced through carbon credit offsets;
(k)transmission lines and associated equipment and structures classified in 15-6-157;
(l)converter stations classified under 15-6-159;
(m)carbon sequestration equipment as defined in 15-6-158;
(n)pipelines classified under 15-6-158; and
(o)sustainable aviation fuel production facilities.
(4)(a) In order to qualify for the abatement under this part, a facility listed in subsection (3) must meet the following requirements:
(i)commencement of construction of the facility must occur after June 1, 2007; and
(ii)the standard prevailing rate of wages for heavy construction, as provided in 18-2-414, must be paid during the construction phase of the facility.
(b)In order to qualify for the abatement under this part, clean advanced coal research and development equipment and renewable energy research and development equipment must be placed into service after June 30, 2007.
(c)For the facility to qualify under subsection (3)(d), the carbon dioxide produced from the gasification process must be sequestered at a rate that is practically obtainable but may not be less than 65%.
(d)Integrated gasification combined cycle facilities for which a permit under Title 75, chapter 2, is applied for after December 31, 2014, do not qualify under subsection (3)(d).
(e)To qualify under subsection (3)(j), the facility shall offset carbon dioxide emissions by the percentage determined in 15-24-3116.
(5)To qualify for an abatement, the facility or clean advanced coal research and development equipment and renewable energy research and development equipment must be certified as provided in 15-24-3112.
(6)Upon termination of the qualifying period, the abatement ceases and the property for which the abatement had been granted must be assessed at 100% of its taxable value.
(7)For the purposes of this section, “qualifying period” means the construction period and the first 15 years after the facility commences operation or the clean advanced coal research and development equipment or renewable energy research and development equipment is purchased. The total time of the qualifying period may not exceed 19 years.