Montana Waste Oil Heater Tax Credit up to $3600

By Thomas Brown

Consider These Incentives to Offset the Cost of Waste Oil Equipment

Used oil generators considering high-efficiency used oil burning systems often explore financial incentives available for investing in alternative energy solutions. Montana businesses won’t find a waste oil incentive for their installation, but they may find a few incentives that make the investment worthwhile.

The Energy Conservation Investments Deduction allows businesses to deduct up to $3,600 for capital investments in buildings for the purpose of conserving energy. Depending on the pollution control solutions built-into the used oil burner, businesses may also qualify for the Pollution Control and Carbon Capture Equipment property tax incentive. Those who qualify can obtain a 10-year tax exemption and/or a reduced tax rate of 3%. Tax incentives vary based on company and solution eligibility.

Always check with a local tax professional for more customized information about current tax incentives available. Businesses may also find additional incentives through federal programs and nonprofit conservation organizations.

Recycling and efficient waste oil burning systems both keep contaminated oil out of the environment – but only one solution saves money. High-efficiency used oil heating and cooling systems allow businesses to save hundreds of dollars every year. Depending on the size of the space and the size of the solution, some companies may save close to a thousand dollars annually. While financial incentives help, businesses must consider the total cost vs. benefit of transitioning to an alternative energy system.

Montana enforces similar regulations as other states regarding the management of waste oil. Federal and state laws prohibit dumping used oil into the environment. Instead, anyone who generates waste oil should take steps to properly contain it and either dispose of it in an appropriate manner with an approved waste oil burning system or recycle it at an approved collection center.

Montana Laws Regarding Used Oil

According to state regulations, used oil generators include automotive repair shops and service stations, trucking industry fleet management service shops, and commercial driving and delivery companies. Any organization that produces waste oil must keep and maintain storage containers labeled as “used oil.” The state allows generators to burn oil in space heaters designed for the job. Certain organizations register their used oil collection programs with the state and local government and offer DIYers and farmers a way to locally offload used oil.

The state does allow businesses to install and use oil fueled heaters and heating systems. In most heaters, businesses must restrict their burning activities to self-generated used oil, oil collected from DIYers, and tested oil that meets the approved range of common contaminants.

Investing in Used Oil Heating and Cooling Systems

Since recycling large quantities of oil according to regulatory guidelines often takes time and money, many businesses today search for legal alternatives to recycling programs. Waste oil heating and cooling systems offer a way for businesses to dispose of used motor oil and generate energy for free. High-efficiency systems often perform better than conventional HVAC systems and provide enough energy to keep thousands of square feet of garage space at a comfortable temperature throughout the day. As a way to cut energy costs and simplify the used oil management process, oil based heating and cooling systems can make sound business sense to many used oil generators.

Sources:

http://deq.mt.gov/Portals/112/Land/hazwaste/documents/40_CFR_279_11.pdf

http://deq.mt.gov/Land/HazWaste/hazUsedOil

http://mainstreetmontanaproject.com/Portals/44/Montana%20Tax%20Climate%20and%20Incentives.pdf