Biodiesel Production Facility Tax Credit

Businesses and individuals are eligible for a tax credit of up to 15% of the cost of constructing and equipping a facility to be used for biodiesel or bio-lubricant production. Additionally, a tax credit is available for property used primarily to crush oilseed crops for purposes of biodiesel production. The facility or equipment must be in operation before January 1, 2015. The business or individual may claim either production tax credit in the two tax years before production begins or in any tax year in which production occurs. The credit may be carried forward seven years and must be returned if the facility ceases operations within five years of claiming the credit. (Reference Montana Code Annotated 15-32-701 and 15-32-702)