Last DSIRE Review: 10/19/2012
||Personal Tax Credit
|Eligible Renewable/Other Technologies:
||Solar Thermal Electric, Photovoltaics, Wind, Biomass, Hydroelectric, Geothermal Electric, Other Non-Renewable Alternative Energy Resources (see summary for list), Small Hydroelectric
|Amount:||75% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project or 20 years, whichever is less.|
|Maximum Incentive:||75% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project or 20 years, whichever is less.|
|Eligible System Size:||Minimum: 2 MW|
Utah Code 63M-4-501, et seq.|
Utah Code 59-10-1029|
The Alternative Energy Development Incentive (AEDI) is a post-performance non-refundable tax credit for 75% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project, or 20 years, whichever is less. The actual amount and duration of an incentive is determined by the Office of Energy Development (OED) on a case-by-case basis.
Eligible projects include the construction of electricity generation facilities of 2 megawatts or greater that utilize hydroelectric, solar, biomass, geothermal, and wind. It also includes energy derived from the following non-renewable energy sources: nuclear fuel, oil-impregnated diatomaceous earth, oil sands, oil shale, or petroleum coke. To qualify for an incentive, the project must generate new state revenue and new incremental jobs, and it must involve significant capital investment, or the creation of high paying jobs.
To receive a tax credit, projects owners must first apply to the OED for a tax credit certificate and provide all the documents specified in Utah Code 63M-4-504. If the OED approves the application and issues a tax credit certificate, it will issue a duplicate copy to the state Tax Commission. To maintain eligibility for the tax credit, the project owners must:
- Annually file a report with the OED showing the new state revenues generated by the alternative energy project during the taxable year for which they are seeking to receive a tax credit
- Annually file a report with the OED prepared by an independent certified public accountant verifying the new state revenue
- Provide the OED with any information required by the OED to certify the economic life of the alternative energy project, which may include a power purchase agreement, a lease, or a permit; and
- Retain records supporting a claim for a tax credit for at least four years
HB 430, signed in March 2009, created a system for the Governor's Office of Economic Development (GOED), in collaboration with local governments, to provide incentives to renewable energy producers and manufacturers who locate their projects in Utah. Originally titled the Renewable Energy Development Incentive (REDI), the name was changed by SB 242 of 2010 to the Alternative Energy Development Incentive (AEDI). In addition to the name change, SB 242 expanded eligibility under the program to other forms of "alternative energy" including petroleum coke, shale oil, nuclear fuel, tar sands, and oil-impregnated diatomaceous earth. SB 65 of 2012 made numerous more changes to this credit. It removed a requirement that the project must be developed in a state-appointed "alternative energy zone", removed a requirement that a local government must also provide development incentives, removed incentives under this program for equipment manufacturing, and designed a separate incentive for equipment manufacturing.