HOUSE BILL NO. 569
INTRODUCED BY R. ERICKSON
A BILL FOR AN ACT ENTITLED: "AN ACT CREATING TAX INCENTIVES FOR BUSINESSES THAT CONSERVE ENERGY AND FOSSIL FUELS BY ESTABLISHING TRANSPORTATION ALTERNATIVES FOR EMPLOYEES; AMENDING SECTIONS 15-32-102 AND 15-32-103, MCA; AND PROVIDING AN APPLICABILITY DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-32-102, MCA, is amended to read:
"15-32-102. Definitions. As used in this part, the following definitions apply:
(1) "Building" means:
(a) a single or multiple dwelling, including a mobile home or manufactured home; or
(b) a building used for commercial, industrial, or agricultural purposes that is enclosed with walls and a roof.
(2) "Capital investment" means any material or equipment purchased and installed in a building or land with or without improvements.
(3) "Energy conservation purpose" means one or both of the following results of an investment:
(a) reducing the waste or dissipation of energy; or
(b) reducing the amount of energy required to accomplish a given quantity of work.
(4) "Geothermal system" means a system that transfers energy either from the ground, by way of a closed loop, or from ground water, by way of an open loop, for the purpose of heating or cooling a residential building.
(5) "Low emission wood or biomass combustion device" means a noncatalytic stove or furnace that:
(a) (i) is specifically designed to burn wood pellets or other nonfossil biomass pellets; and
(ii) has a particulate emission rate of less than 4.1 grams per hour when tested in conformance with the standard method for measuring the emissions and efficiencies of residential wood stoves, as adopted by the department of environmental quality pursuant to 15-32-203; or
(iii) has an air-to-fuel ratio of 35 to 1 or greater when tested in conformance with the standard method for measuring the air-to-fuel ratio and minimum achievable burn rates for wood-fired appliances, as adopted by the department of environmental quality pursuant to 15-32-203; or
(b) burns wood or other nonfossil biomass and has a particulate emission rate of less than 4.1 grams per hour when tested in conformance with the standard method for measuring the emissions and efficiencies of residential wood stoves, as adopted by the department of environmental quality pursuant to 15-32-203.
(6) "Passive solar system" means a direct thermal energy system that uses the structure of a building and its operable components to provide heating or cooling during the appropriate times of the year by using the climate resources available at the site. It includes only those portions and components of a building that are expressly designed and required for the collection, storage, and distribution of solar energy and that are not standard components of a conventional building.
(7) "Recognized nonfossil forms of energy generation" means:
(a) a system that captures energy or converts energy sources into usable sources by using:
(i) solar energy, including passive solar systems;
(ii) wind;
(iii) solid waste; or
(iv) the decomposition of organic wastes;
(b) a system that produces electric power from solid wood wastes; or
(c) a small system that uses water power by means of an impoundment that is not over 20 acres in surface area.
(8) "Transportation alternatives" means:
(a) carpools;
(b) vanpools;
(c) transit passes;
(d) bicycle and pedestrian programs and amenities;
(e) preferential parking plans for carpools and vanpools;
(f) any other program that reduces the number of single-occupant motor vehicles commuting to a business employment site."
Section 2. Section 15-32-103, MCA, is amended to read:
"15-32-103. Deduction for energy-conserving investments. (1) In addition to all other deductions from gross
corporate income allowed in computing net income under chapter 31, part 1, a taxpayer may deduct a portion of his the
taxpayer's expenditure for a capital investment in a building for an energy conservation purpose, in accordance with the
following schedule:
If the installation or If the installation or
investment is made in a investment is made in a
residential building: building not used
as a residence:
100% of first $1,000 expended 100% of first $2,000 expended
50% of next $1,000 expended 50% of next $2,000 expended
20% of next $1,000 expended 20% of next $2,000 expended
10% of next $1,000 expended 10% of next $2,000 expended
(2) In addition to all other deductions from gross corporate income allowed in computing net income under chapter 31, part 1, a taxpayer may deduct a portion of the taxpayer's expenditure for providing transportation alternatives, in accordance with the following schedule:
100% of the first $2,000 expended
50% of the next $2,000 expended
20% of the next $2,000 expended
10% of the next $2,000 expended
(2)(3) This The tax treatment in subsection (1) is subject to approval of the department as provided in 15-32-106 and
may not be claimed for so much of the expenditure and capital investment as is financed by a state, federal, or private grant
for energy conservation."
NEW SECTION. Section 3. Applicability. [This act] applies to tax periods beginning after December 31, 1999.
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Latest Version of HB 569 (HB0569.01)
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