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 (revenue.mt.gov)
Related programs
Apprenticeship Tax Credit
$750 per apprentice and $1
Registered apprentices can create modest credits for forest-products employers.
Historic Property Preservation Credit
25% of the federal rehabilitation credit attributable to
A qualifying historic industrial rehabilitation can generate a state credit.
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.
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.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
Per-gallon or gallon-equivalent credit based on the
Potentially relevant only if a forest-products business actually produces qualifying transportation fuel.