Renewable Energy Systems Tax Credit (Personal) (Utah)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Utah

Name Renewable Energy Systems Tax Credit (Personal)
Incentive Type Personal Tax Credit
Applicable Sector Commercial, Residential, 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
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Residential: 25%

Commercial wind, geothermal electric, and biomass systems 660 kW or greater 0.35¢/kWh (0.0035/kWh) for 4 years
Other commercial technologies and commercial wind, geothermal electric, and biomass systems smaller than 660 kW: 10% of installed cost
Photovoltaic systems 2 MW or greater placed in service on or after January 1, 2015: 0.35¢/kWh (0.0035/kWh) for 4 years
Photovoltaic systems smaller than 660 kW placed in service on or after January 1, 2015: 10% of installed cost Photovoltaic systems between 660 kW and 2 MW placed in service on or after January 1, 2015: May choose either 0.35¢/kWh (0.0035/kWh) for 4 years or 10% of installed cost


Carryover Provisions Residential: excess credit may be carried over for the next 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
Expiration Date Not specified (see summary)






Maximum Incentive Residential: 2,000

Commercial wind, geothermal electric, and biomass systems 660 kW or greater: no limit
Other commercial systems: 50,000











Program Administrator State Energy Program, State Tax Commission
Website http://www.energy.utah.gov/renewable_energy/renewable_incentives.htm#retaxcred
Date added to DSIRE 2000-01-01
Last DSIRE Review 2014-04-07



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Utah's 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 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. This legislation also expanded the tax credit language to include geothermal resources, and modified the credit calculation for large wind, biomass, and geothermal electric systems. The revised tax credit is applicable to systems placed in service on or after January 1, 2007. Taxpayers wishing to use this tax credit must first apply through the Utah State Energy Program before claiming the tax credit against their Utah state taxes.

Residential Systems:
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.

Commercial Systems:
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.


Incentive Contact

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
Zip/Postal Code 84114
Phone (801) 538-8718


Email dbeaudoin@utah.gov
Website http://www.energy.utah.gov/
Contact Name Public Information
Department Utah State Tax Commission

Address 210 North 1950 West

Place Salt Lake City, Utah
Zip/Postal Code 84134
Phone (801) 297-2200
Phone 2 (800) 662-4335


Website http://tax.utah.gov/index.html
     

Authorities (Please contact the if there are any file problems.)

Authority 1: UAC R362-2




Authority 2: Utah Code 59-10-1014
Date Effective 01/01/01, amendments effective 01/01/07
Date Enacted 2001, amendments enacted 2007
Expiration Date Not specified (see summary)

Authority 3: Utah Code 59-10-1106
Date Effective 01/01/01, amendments effective 01/01/07
Date Enacted 2001, amendments enacted 2007
Expiration Date Not specified (see summary)

Authority 4: SB 224
Date Effective 2015-01-01
Date Enacted 2014-04-01
















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"