Explore this page to learn about rebates, tax credits, and financing options that might be available for your home or business. 

Home Efficiency Rebates

The Sustainability Division offers a $500 rebate for qualifying heat pump water heaters. 

The Water Conservation Division offers cash rebates for residential and commercial customers for a variety of high efficiency fixtures, appliances, drought tolerant plants, and sprinkler system equipment. 

NorthWestern Energy Rebates

NorthWestern Energy customers are eligible for a variety of rebates for existing homes and new construction.  Rebates include: qualifying dishwashers, clothes washers, water heaters, air purifiers, air source heat pumps, ground source heat pumps, LED lighting, insulation, and more!

Financing

MT DEQ Multifamily Energy Retrofit Loan Program

The Multifamily Energy Retrofit Loan Program provides low-interest loans to existing multifamily affordable housing facilities for energy efficiency improvements, aiming to lower energy costs as well as improve comfort of the facility and reduce energy use.

MT DEQ Alternative Energy Revolving Loan Program

The Alternative Energy Revolving Loan Program provides low-interest loans to individuals, small businesses, nonprofit organizations, and government entities in order to increase investments in alternative energy systems and energy conservation measures in Montana.

Tax Credits

The Inflation Reduction Act of 2022 has begun sunsetting many of the available tax credits available and will end most tax credits by December 31st, 2025. Take advantage of what's available until then!

• MT DEQ Energy Tax Credit Information
• EnergyStar© Homeowner Tax Credit Information and Qualifying Products
• IRS Factsheet (DEC22) FAQ: Residential Energy Credits (PDF)
• Residential Energy Credit Tax Form

Energy Efficient Home Improvement Tax Credit (25C)

Energy Efficient Home Improvement tax credits are available for existing homes (principal residence only) through December 31st, 2025.

Annual aggregate limit of $3,200

• Annual total limit of $1,200 for any combination of home envelope improvements (windows/doors/skylights, insulation, electrical) plus furnaces, boilers, and central air conditioners. 
• Annual total limit of $2,000 for any combination of heat pumps, heat pump water heaters, and biomass stoves/boilers.

Residential Clean Energy Tax Credit (25D)

The Residential Clean Energy Tax Credit are available for existing homes through December 31st, 2025 and can be applied to qualifying expenditures for: 

• Solar Energy Systems
• Battery storage
• Geothermal Heat Pumps
• Small Wind Turbines
• Fuel Cells

Expenditures can include equipment, cost of labor, permits, and inspection. The Residential Clean Energy Tax Credit can be used for existing homes and new construction. Both principal homes and second homes qualify. Rentals do not qualify.

Residential Clean Energy Tax Credit

Inflation Reduction Act (IRA)

The Inflation Reduction Act (IRA) of 2022 was signed into law in August 2022. The IRA marks the single largest investment in climate and energy in American history. Within the IRA there are a variety of rebates, tax credits, and financing tools citizens and businesses can take advantage of to advance energy efficiency, clean energy systems, electric vehicles, and more. 

At this time, there are still many unknowns related to the IRA implementation. We will continue to track the IRA guidance as it becomes available and share it with the Bozeman community. 

Rebates and tax credits for home energy efficiency are both part of the IRA. Tax credits are active and available for 2023-2025, so you can start taking advantage of these now! Rebate and other incentive programs are not available yet in Montana. 

The IRA rebates are not available in Montana yet. The program will be administered by the MT State Energy Office. Stay tuned for updates on program logistics and requirements. 

• Montana DEQ Energy Efficiency Rebates
• DOE Home Energy Rebate Programs
• IRS Inflation Reduction Act of 2022 Updates

Tax Credits for Home Builders

As part of the IRA, the Tax Credit for Energy Efficient New Homes (45L) was updated and extended through July 1, 2026. This tax credit is tied to ENERGY STAR© certification for single-family ($2,500), manufactured ($2,500), and multifamily homes ($500; or $2,500 when prevailing wage requirements are met); see program requirements.

Additional tax credits are available for homes certified with DOE Zero Energy Ready Home (ZERH) Program.

Commercial

Rebates and Cash Incentives 

NorthWestern Energy Rebates

NorthWestern Energy commercial customers are eligible for a variety of efficiency rebates.  Custom incentives may be available through NorthWestern's E+ Business Partners program.

Financing

Montana C-PACE Financing

C-PACE financing (Commercial Property Assessed Capital Enhancements) makes energy efficiency upgrades and renewable energy investments more attainable to commercial building owners by improving their bottom line. MTPACE can cover up to 100% of eligible project costs and payments are repaid through a special property tax assessment with terms up to 20 years. Learn more at lastbestpace.com

MT DEQ Alternative Energy Revolving Loan Program

The Alternative Energy Revolving Loan Program provides low-interest loans to individuals, small businesses, nonprofit organizations and government entities in order to increase investments in alternative energy systems and energy conservation measures in Montana.

Tax Credits

Commercial Buildings Energy-Efficiency Tax Deduction (179D) 

The 179D commercial buildings energy efficiency tax deduction primarily enables building owners to claim a tax deduction for installing qualifying systems in buildings that begin construction before June 30, 2026. 

• The investment tax credit (ITC) is a tax credit that reduces the federal income tax liability for a percentage of the cost of a solar system that is installed during the tax year.
• The production tax credit (PTC) is a per kilowatt-hour (kWh) tax credit for electricity generated by solar and other qualifying technologies for the first 10 years of a system’s operation. It reduces the federal income tax liability and is adjusted annually for inflation.