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How the "Clean and Green" Property Tax Incentives will be Applied to Electrical Transmission Property

The Montana Department of Environment Quality (DEQ) will classify transmission lines as Class 14 (3%) or for the 50% Abatement (also known as "Clean and Green" Property Tax Incentives) if and when a company seeks these incentives. Otherwise, transmission lines will be sorted by ownership by the Department of Revenue (DOR).

To qualify for Class 14 classification, the following requirements must be met:

The DEQ will also determine, upon application, if a line qualifies for the 50% Abatement, described in MCA 15-24-3111. Specifically:

If a line were to carry more than one type of energy (renewable and non-renewable), the line would be taxed proportionately based on how much energy comes from each of the facilities that contracted for firm space on the line. Facilities that use the line on a non-firm basis will not be considered in the determination.

Within 30 days of receipt of application, the DEQ will determine whether or not the application is complete and will notify the applicant. (A follow-up interview or inspection by the DEQ may follow application.) Within 60 days of determining the application is complete, the DEQ will issue a certification or deny the application and will notify the applicant either way. If the DEQ finds that a facility or equipment qualifies for classification or abatement, it will issue a certification of eligibility. Once the property is certified by the DEQ, the DOR will apply and administer the property tax just as with any other facility.

Sources: Paul Cartwright, Senior Energy Analyst, Department of Environmental Quality and http://deq.mt.gov