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Utah

Utah

Incentives/Policies for Renewables & Efficiency

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Renewable Energy Systems Tax Credit (Corporate)   

Last DSIRE Review: 04/07/2014
Program Overview:
State: Utah
Incentive Type: Corporate Tax Credit
Eligible Renewable/Other 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, Geothermal Direct-Use
Applicable Sectors: Commercial, Residential, Construction, Installer/Contractor, Multi-Family Residential
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
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
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.
Carryover Provisions:Residential: excess credit may be carried forward four years
Commercial: may not be carried forward or back.
Start Date:01/01/01, amendments effective 01/01/07
Expiration Date:Not specified (see summary)
Web Site: http://www.energy.utah.gov/renewable_energy/renewable_incentives....
Authority 1:
Date Enacted:
Date Effective:
Expiration Date:
Utah Code 59-7-614
2001, amendments enacted 2007
01/01/01, amendments effective 01/01/07
Not specified (see summary)
Authority 2:
UAC R362-2
Authority 3:
Date Enacted:
Date Effective:
SB 224
04/01/2014
01/01/2015
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. 

 

 

 


 
Contact:
  Denise Beaudoin Brems
Office of Energy Development
60 East South Temple Street, Suite 300
PO Box 144845
Salt Lake City, UT 84114
Phone: (801) 538-8718
E-Mail: dbeaudoin@utah.gov
Web Site: http://www.energy.utah.gov/
 
  Public Information
Utah State Tax Commission
210 North 1950 West
Salt Lake City, UT 84134
Phone: (801) 297-2200
Phone 2: (800) 662-4335
Fax: (801) 297-6358
Web Site: http://tax.utah.gov/index.html
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.