Renewable Energy Sales Tax Exemption (Utah)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Renewable Energy Sales Tax Exemption|
|Incentive Type||Sales Tax Incentive|
|Applicable Sector||Commercial, Industrial, Utility|
|Eligible Technologies||Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Fuel Cells, Anaerobic Digestion, Fuel Cells using Renewable Fuels|
|Energy Category||Renewable Energy Incentive Programs|
|Equipment Requirements||2 MW or greater, or for expansions of 1 MW or greater|
|Program Administrator||Utah State Tax Commission|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
Utah exempts the purchase or lease of equipment used to generate electricity from renewable resources from the state sales tax. Eligible purchases or leases must be made for or by a renewable energy production facility on or after July 1, 2004, and before June 30, 2027. All leases must be made for at least seven years.
Eligible renewable resources include wind, solar, biomass, landfill gas, anaerobic digestion, hydroelectricity, and geothermal energy. Facilities must use renewable energy to produce electricity and must have a minimum capacity of 2 megawatts (MW). An existing facility that is expanded by one or more MW as a result of the machinery or equipment may also be eligible for the exemption.
Equipment eligible for the exemption generally includes wind turbines, generating equipment, control and monitoring systems, power lines, substation equipment, lighting, fencing, pipes, and other equipment for locating power lines and poles. Equipment not eligible for the exemption includes tools and other equipment used in construction of a new facility, contracted services required for construction, and routine maintenance activities and equipment utilized or acquired after the project is operational.
As of 2013, sales of fuel cells are also exempt from taxation.
|Contact Name||Information Specialist - Tax Commission|
|Department||Utah State Tax Commission|
|Address||210 North 1950 West|
|Place||Salt Lake City, Utah|
|Phone 2||(800) 662-4335|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Utah Code 59-12-104|
|Authority 2:||Utah Code 59-12-102|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.