Alternative Energy Development Incentive (Utah)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Alternative Energy Development Incentive|
|Incentive Type||Industry Recruitment/Support|
|Applicable Sector||Commercial, Industrial|
|Eligible Technologies||Biomass, Geothermal Electric, Hydroelectric, Photovoltaics, Small Hydroelectric, Solar Thermal Electric, Wind, Other Non-Renewable Alternative Energy Resources (see summary for list)|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||Determined on a case-by-case basis by the Governor's Office of Economic Development Board and Executive Director based on statutory guidelines and evaluation criteria.|
|Maximum Incentive||Up to 100% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project (typically 5-10 years)|
|Program Administrator||Utah Governor's Office of Economic Development|
HB 430, signed in March 2009, created a system for the Governor's Office of Economic Development (GOED), in collaboration with local governments, to provide incentives to renewable energy producers and manufacturers who locate their projects in Utah. Originally titled the Renewable Energy Development Incentive (REDI), the name was changed by SB 242 of 2010 to the Alternative Energy Development Incentive (AEDI). In addition to the name change, SB 242 expanded eligibility under the program to other forms of "alternative energy" including petroleum coke, shale oil, nuclear fuel, tar sands, and oil-impregnated diatomaceous earth.
The AEDI is a post-performance refundable tax credit for up to 100% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project (typically 5-10 years). The actual amount and duration of an incentive is determined by the GOED on a case-by-case basis. The GOED will use statutory guidelines and evaluation criteria in determining the actual incentive for a project. The criteria includes:
- The financial strength of the company
- The number and salary of jobs created
- The amount of new state tax revenue
- The long-term capital investment
- The costs and benefits of the alternative energy project to state and local governments
- Competition with other locations
To be eligible, a project must be located in a registered alternative energy development zone. Authority for the creation of alternative energy development zones was granted to the GOED by HB 430. A zone is a specific geographic area zoned commercial, industrial, manufacturing, business park, research park, or other appropriate use in a community approved master plan. Before the GOED can deem an area an alternative energy development zone, the local government containing the zone must first approve it and agree to provide incentives, which may include an abatement of some or all of the property taxes for up to 30 years for an alternative energy project.
Eligible projects include the construction of electricity generation facilities that utilize hydroelectric, solar, biomass, geothermal, wind, waste gas/heat recovery resources or nuclear. Eligible projects can also include the manufacturing of equipment used directly in the generation of electricity from an alternative resource. To qualify for an incentive, the project must generate new state revenue and new incremental jobs, and it must involve significant capital investment, the creation of high paying jobs, or significant purchases from Utah vendors and providers.
|Contact Name||Jeffrey Barrett|
|Department||Office of Energy Development|
|Address||195 N 1950 West, 2nd Floor|
|Place||Salt Lake City, Utah|
|Authority 2:||Utah Code 59-7-614.2|
|Authority 3:||Utah Code 59-10-1107|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.