As Calumet announced its $1.4 billion conditional loan commitment from the U.S. Department of Energy last week, the company also filed an update in its two pending tax appeal cases.

Last week, Calumet said the DOE had conditionally committed to the loan for the expansion of its Montana Renewables facility in Great Falls to increase production of sustainable aviation fuel.

If finalized, the loan will help finance the expansion project to increase annual biofuel production from its current 140 million gallons to about 315 million gallons, according to a DOE release.

Calumet announces $1.4 billion federal loan for expansion as regional officials question wastewater, taxes

Once the facility reaches full capacity, Montana Renewables would produce about 10 percent of the Biden-Harris administration’s goal of producing 3 billion gallons of sustainable aviation fuel annually by 2030.

Calumet has two pending tax appeals before the Montana Tax Appeal Board, one for the 2022 tax year and one for the 2023 tax year.

Its subsidiary, Montana Renewables, has a pending appeal before the board of a Montana Department of Environmental Quality in which it refutes DEQ’s decision to certify eight percent of the facility as pollution control equipment, and thereby tax exempt under state law, as opposed to its request to have the entire facility certified as tax exempt.

Montana Renewables, Calumet have pending tax appeals before state board

Under state law, air and water pollution and carbon capture equipment certified as such by DEQ is tax exempt.

A hearing in that case is currently set for May 2025.

The Electric asked Calumet’s spokeswoman if the company intended to pursue the tax exemption for the facility expansion funded by the DOE loan. The company has not yet responded.

On Oct. 18, Calumet filed a status report with the Montana Tax Appeal Board on both of their pending cases for 2022 and 2023 taxes.

GFPS board approves request to access protested Calumet taxes

Calumet is protesting its valuation for the 2023 tax year and appealing a revised valuation for their 2022 tax year.

In the update, Calumet said the Department of Revenue had recently issued its 2024 assessment, the parties have conducted an informal conference and Calumet is awaiting receipt of the final 2024 assessment.

Calumet said it had been in discussions with DOR that might narrow the issues or consolidate the proceedings.

City Commission approves tax increase, budget

“Given the current status of the 2024 assessment, and that the final assessment has not yet been issued and Calumet’s time to appeal has not yet begun to run, Calumet is still evaluating whether the 2024 assessment will be appealed to this board and/or whether any of the cases related to the 2022, 2023 or 2024 assessments should be consolidated into one proceeding before this board.”

In the Oct. 18 filing, Calumet asked the board to stay all proceedings in both pending case for another 60 days, at which time, they’d file additional status reports.

County board upholds state’s revised tax valuation for Calumet

Last fall, the Cascade County Tax Appeal Board voted to deny a request from Calumet asking their taxable value for 2023 to be lowered by about $189  million. Calumet appealed that decision to the state tax board.

City officials said the Calumet protest meant about $1.1 million being held annually from city revenues until the protest was resolved.

Calumet appeals county tax board denial to state [2023]

This spring, Calumet asked the county tax board to reject the DOR’s adjustment to their taxable valuation to account for about $79 million in assets that had been missed in the initial appraisal.

Calumet protested their 2017 taxable value from the state that was set at $538 million.

The county tax appeal board lowered the taxable value to $312.5 million. The DOR appealed that decision to the state.

County considering legal services for issuance of municipal bonds for Calumet project [2022]

The protest was settled in 2020 and the city lost about $4 million in tax revenue over that three year period, according to the city.

City approves Calumet tax abatement [2022]

In 2016, Calumet requested a tax abatement that was estimated to be a $6 million loss of property taxes to the city over 10 years. Commissioners denied that request.