15-32-402. Commercial investment credit -- wind-generated electricity. (1) An individual, corporation, partnership, or small business corporation as defined in 15-31-201 that makes an investment of $5,000 or more in certain depreciable property qualifying under section 38 of the Internal Revenue Code of 1954, as amended, for a commercial system located in Montana which generates electricity by means of wind power is entitled to a tax credit against taxes imposed by 15-30-103 or 15-31-121 in an amount equal to 35% of the eligible costs, to be taken as a credit only against taxes due as a consequence of taxable or net income produced by one of the following:
     (a) manufacturing plants located in Montana that produce wind energy generating equipment;
     (b) a new business facility or the expanded portion of an existing business facility for which the wind energy generating equipment supplies, on a direct contract sales basis, the basic energy needed; or
     (c) the wind energy generating equipment in which the investment for which a credit is being claimed was made.
     (2) For purposes of determining the amount of the tax credit that may be claimed under subsection (1), eligible costs include only those expenditures that qualify under section 38 of the Internal Revenue Code of 1954, as amended, and that are associated with the purchase, installation, or upgrading of:
     (a) generating equipment;
     (b) safety devices and storage components;
     (c) transmission lines necessary to connect with existing transmission facilities; and
     (d) transmission lines necessary to connect directly to the purchaser of the electricity when no other transmission facilities are available.
     (3) Eligible costs under subsection (2) must be reduced by the amount of any grants provided by the state or federal government for the system.

     History: En. Sec. 2, Ch. 648, L. 1983.