Montana · Historic · MT-HIST-001
Historic Property Preservation Credit
Publication revised September 24, 2026. Sourcebook page 170.
Credit amount / calculation
25% of the federal rehabilitation credit attributable to qualifying Montana property.
Business fit and eligible activity
A qualifying historic industrial rehabilitation can generate a state credit. Eligible property rehabilitation or redevelopment; not the cost of wood supplied to someone else's project.
Illustrative business benefit
If the qualifying federal rehabilitation credit is $400,000, the Montana calculation is $400,000 x 25% = $100,000, subject to the state tax-liability limit. It is not 25% of the entire construction budget.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Establish that the property and rehabilitation are eligible before demolition, construction, or irreversible design work begins.
Official sources
Related programs
Apprenticeship Tax Credit
$750 per apprentice and $1
Registered apprentices can create modest credits for forest-products employers.
Jobs Growth Incentive Tax Credit
50% of employer-paid Social Security
Employers creating qualifying jobs can receive a credit based on employer payroll taxes through tax year 2028.
Recycling Tax Credit
25% of the first $250
Potentially relevant to qualifying recycling equipment/property used by a wood-products business.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.
Rehabilitation Credit (Internal Revenue Code §47)
Generally
A forest-products company rehabilitating a certified historic mill or industrial building for income-producing use may qualify.