RTC Policy Finder

Tax Incentives for Green Hydrogen

In 2021, Montana created a new tax classification for green hydrogen, alongside new tax incentives for the technology. Under the law, any facility producing hydrogen without emitting greenhouse gasses, storing or transporting such hydrogen, or generating electricity from such hydrogen will be taxed at a property tax rate of 1.5% of market value for 15 years after construction. Construction must have begun after July 1, 2021. Facilities may also claim this tax rate if an additional $25 million has been invested in the facility since that date. If generating electricity, facilities must use fuel consisting of at least 25% green hydrogen to claim the lower rate.

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