Utah
Incentives/Policies for Renewable Energy
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Last DSIRE Review: 06/17/2009
| Incentive Type: |
Corporate Tax Credit |
| State: |
Utah |
| 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,
Direct-use Geothermal,
Solar Pool Heating,
Anaerobic Digestion
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| Applicable Sectors: |
Commercial,
Residential,
Builder/Developer,
Installer/Contractor,
Multi-Family Residential
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| 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 systems: 10% |
| Maximum Incentive: | Residential: $2,000
Commercial wind, geothermal electric, and biomass systems 660 kW or greater: no limit
Other commercial systems: $50,000 |
| 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/Installation 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. |
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Web Site: |
http://geology.utah.gov/
sep/incentives/rincentives.htm#retaxcred
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Authority 1:
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Utah Code 59-7-614
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| Date Enacted: | 2001, amendments enacted 2007 |
| Date Effective: | 01/01/01, amendments effective 01/01/07 |
| Expiration Date: | Not specified (see summary) |
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Authority 2:
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UAC R638-2
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Summary:
Utah's individual income tax credit for renewable energy systems includes provisions for both residential and commercial applications. The Utah State Energy Program 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. 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 individual income tax credit for commercial systems, which is structured as a refundable credit, is 10% of the reasonable installed costs up to $50,000 for wind, geothermal electric, and biomass systems with a total capacity of less than 660 kW and for all other eligible renewable energy systems. 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 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.
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.
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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