Do the federal and state energy conservation credits apply to a second home or rental unit?
The federal credit for expenses like energy efficient windows, doors, heating and cooling systems, and insulation, that are often called “energy conservation” credits, cannot be claimed for improvements to second homes or rentals. The improvements qualify for the federal credit only if made to a taxpayer’s “principal residence” or “main home.” Montana’s energy conservation credit may be claimed by Montana residents for improvements to second homes and residential rentals. Montana’s credit applies more broadly than the federal credit to “dwellings,” or structures that are habitually occupied.
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