Renewable Energy Systems Tax Credit (Corporate) (Utah)

Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place	Utah
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
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, and photovoltaic systems 2 MW or greater: 0.35¢/kWh (0.0035/kWh) for 4 years Other commercial technologies and commercial wind, geothermal electric, photovoltaic, and biomass systems smaller than 600 kW: 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 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 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
References	DSIREDatabase of State Incentives for Renewables and Efficiency

Summary

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.

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:	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 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.