Montana · Recycling · MT-REC-001
Recycling Tax Credit
Publication revised September 24, 2026. Sourcebook page 172.
Credit amount / calculation
25% of the first $250,000, 15% of the next $250,000, and 5% of the next $500,000 of qualifying equipment. Maximum $125,000.
Business fit and eligible activity
Potentially relevant to qualifying recycling equipment/property used by a wood-products business. Qualified investment or approved project activity; confirm eligible property, location and taxpayer type.
Eligibility and practical use
The equipment must process qualifying reclaimed material. Reuse of a producer's own ordinary industrial waste is restricted, and equipment producing energy from reclaimed material is excluded. Obtain a determination for mill residuals before purchase.
Illustrative business benefit
If all $750,000 qualifies, the credit is $62,500 + $37,500 + $12,500 = $112,500. With only $80,000 of applicable tax liability, usable savings are limited to $80,000; there is no refund or carryforward.
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Check the reclaimed-material definition and available tax liability; a large nominal credit can be lost if it cannot be used this year.
Official sources
- Montana Department of Revenue - Recycle Credit (mt.gov)
- Montana Department of Revenue - Apprenticeship Tax Credit (mt.gov)
- Montana Department of Revenue - Preservation Credit (mt.gov)
- Montana Department of Revenue - Income Tax Credits (mt.gov)
- Montana Department of Revenue - Recycle Credit (nebraska.gov)
Related programs
Apprenticeship Tax Credit
$750 per apprentice and $1,500 for a qualifying veteran apprentice.
$750 per apprentice and $1,500 for a qualifying veteran apprentice.
Historic Property Preservation Credit
25% of the federal rehabilitation credit attributable to qualifying Montana property.
25% of the federal rehabilitation credit attributable to qualifying Montana property.
Jobs Growth Incentive Tax Credit
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Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally 6% base investment credit and up to 30% with prevailing-wage/apprenticeship...
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Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory...
Production-based credit beginning at 0.3¢/kWh, with higher rates and bonuses when statutory conditions are satisfied.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the applicable amount and lifecycle emissions...
Per-gallon or gallon-equivalent credit based on the applicable amount and lifecycle emissions factor; qualifying fuel must be sold by December 31, 2029.