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Utah

Utah

Incentives/Policies for Renewables & Efficiency

Printable Version
Alternative Energy Manufacturing Tax Credit   

Last DSIRE Review: 10/19/2012
Program Overview:
State: Utah
Incentive Type: Industry Recruitment/Support
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
Applicable Sectors: Commercial, Industrial, Manufacturers
Amount:Determined on a case-by-case basis by the Governor's Office of Economic Development based on statutory guidelines and evaluation criteria.
Maximum Incentive:Up to 100% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project or 20 years, whichever is less.
Start Date:5/12/2009
Web Site: http://business.utah.gov/targeted-industries/energy/
Authority 1:
Utah Code 63M-1-3101, et seq.
Authority 2:
Utah Code 59-10-1030
Authority 3:
Utah Code 59-7-614.8
Summary:

The Alternative Energy Development Incentive (AEDI) is a post-performance non-refundable tax credit for up to 100% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of a manufacturing project, or 20 years, whichever is less. The actual amount and duration of an incentive is determined by the Governr's Office of Economic Development (GOED) on a case-by-case basis.

Eligible projects include the manufacture of equipment that will utilize hydro, solar, biomass, geothermal, and wind energy to produce electricity. It also includes that manufacture of equipment that will help develop 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 also receive incentives from the local government.

To receive a tax credit, manufacturers must first apply to the GOED for a tax credit certificate and provide all the documents specified in Utah Code 63M-1-3104.  receive a tax credit certificate to be eligible for this tax credit. If the GOED approves the application and issues a tax credit certificate, it will issue a duplicate copy to the state Tax Commission. The maintain eligibility for the tax credit, the project owners must:

  • Annually file a report with the GOED 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
  • Submit to an audit for verification of a tax credit
  • Provide the GOED with any information required by the GOED 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

 

Background

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", and designed a separate incentive for the development of alternative energy projects.


 
Contact:
  Theresa Foxley
Utah Governor's Office of Economic Development
60 East South Temple, 3rd Floor
Salt Lake City, UT 84111
Phone: (801) 538-8742
E-Mail: tfoxley@utah.gov
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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.