Renewable Energy Systems Tax Credit (Corporate) (Utah)
Last modified on February 12, 2015.
Financial Incentive Program
|Name||Renewable Energy Systems Tax Credit (Corporate)|
|Incentive Type||Corporate Tax Credit|
|Applicable Sector||Commercial, Residential, Construction, Installer/Contractor, Multi-Family Residential|
|Eligible Technologies||Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps, Solar Pool Heating, Anaerobic Digestion|
|Energy Category||Renewable Energy Incentive Programs|
|Amount|| Residential: 25%|
Commercial wind, geothermal electric, and biomass systems 660 kW or greater, and photovoltaic systems 2 MW or greater: 0.35¢/kWh (0.0035/kWh) for 4 years
|Carryover Provisions|| Residential: excess credit may be carried forward four years|
Commercial: may not be carried forward or back.
|Eligible System Size||Not specified|
|Equipment Requirements||System must be in compliance with all applicable performance and safety standards; must obtain certification from the State Energy Program; individuals who wish to design their own system may be exempt from certain system requirements.|
|Start Date|| 01/01/01, amendments effective 01/01/07|
The date "01/01/01, amendments effective 01/01/07" was not understood.
|Expiration Date|| Not specified (see summary) |
The date "Not specified (see summary)" was not understood.
|Maximum Incentive|| Residential: 2,000|
Commercial wind, geothermal electric, and biomass systems 660 kW or greater and photovoltaic systems 2 MW or greater: no limit
|Program Administrator||State Energy Program, State Tax Commission|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
Utah's individual income tax credit for renewable energy systems includes provisions for both residential and commercial applications. The Utah Office of Energy Development administers the tax credit and has responsibility for revising the tax credit rules and certifying systems as eligible for the credit. Legislation (section 5) enacted in 2007 extended these tax credits through at least 2012. On or before this time, and every five years thereafter, the Utah Tax Review Commission must review the tax credit and make recommendations as to whether the tax credit should be continued, modified, or repealed.
The individual income tax credit for residential systems is 25% of the reasonable installed system costs up to a maximum credit of $2,000 per residential unit. The residential credit is nonrefundable, but unused credit may be carried over up to four years. A non-business entity that leases a residential system is eligible for the credit and may use the credit for no more than seven years from the initiation of the lease.
Eligible residential systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and biomass. Note that eligible biomass systems must produce either fuel or electricity. Biomass heating systems are not eligible.
Under the corporate tax credit language, a builder can take a tax credit for the installation of a renewable energy system on a residential unit.
The tax credit for commercial systems is structured as a refundable credit. Eligible commercial systems include active and passive solar thermal systems; solar electric systems; wind turbines; hydro (water) energy; geothermal heat pumps; direct-use geothermal; and geothermal electricity; and biomass systems. Note that eligible biomass systems must produce either fuel or electricity. Biomass heating systems are not eligible. Renewable energy systems may be used to supply energy to a commercial unit or as a commercial enterprise selling the energy.
Investment Tax Credit
For wind, geothermal electric, and biomass systems with a total capacity of less than 660 kW and for all other eligible renewable energy systems of any size, the credit is worth 10% of the reasonable installed costs up to $50,000. A business entity that leases a commercial system is eligible for the credit and may use the credit for no more than seven years from the initiation of the lease. For photovoltaic (PV) systems placed in service on or after January 1, 2015, the maximum size for the investment tax credit is 2 megawatts (MW). Until that date, PV systems of any size can claim the investment tax credit.
Production Tax Credit
For commercial wind, geothermal electric, and biomass systems with a total capacity of 660 kW or greater, the credit is 0.35¢/kWh ($0.0035/kWh) for four years. The credit may not be carried forward or back. A business entity that leases a commercial system is also eligible for the credit. For photovoltaic (PV) systems placed in service on or after January 1, 2015, systems greater than 2 megawatts (MW) can only claim the production tax credit, and systems between 660 kW and 2 MW can choose either the production tax credit or the investment tax credit. Until that date, PV systems of any size can only claim the investment tax credit.
|Contact Name||Denise Beaudoin Brems|
|Department||Office of Energy Development|
|Address||60 East South Temple Street, Suite 300|
|Address 2||PO Box 144845|
|Place||Salt Lake City, Utah|
|Phone|| (801) 538-8718
|Contact Name||Public Information|
|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 59-7-614|
|Date Effective||01/01/01, amendments effective 01/01/07|
|Date Enacted||2001, amendments enacted 2007|
|Expiration Date||Not specified (see summary)|
|Authority 2:|| UAC R362-2
|Authority 3:||SB 224|
|Date Enacted|| 2014-04-01
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.
- "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid
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