The Renewable Energy Systems Tax Credit is divided into two types of incentives. The Investment Tax Credit (ITC) and the Production Tax Credit (PTC).
The Investment Tax Credit (ITC) has two sides: Residential and Commerical. Eligible technologies include solar photovoltaic, solar thermal, wind, geothermal, hydro, and biomass.
- The Residential Tax Credit is non-refundable and is calculated as 25% of the eligible system cost or $2,000, whichever is less.
- The Commercial Tax Credit is calculated as 10% of the eligible system cost or $50,000, whichever is less. The Commercial Tax Credit is refundable, but can only be claimed by business, corporation, or LLC entities.
Click on the link below to be directed to the Solar PV tax credit application website.
Frequently Asked Questions about Solar PV application and tax credit.
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The Production Tax Credit (PTC) incentive is available for large scale projects that are 660 kilowatts or greater (solar photovoltaic systems 660 KW to 2 MW may choose between the ITC & PTC). The PTC is calculated as $.0035 (.35¢) per kilowatt hour of produced electricity during the project’s first 48 months. For the purposes of the credit, the “renewable energy” category includes solar photovoltaic, wind, geothermal and biomass. Please contact Richard Bell if you intend to pursue and apply for a Production Tax Credit.
For further information regarding the Utah Renewable Energy Systems Tax Credit, please click on the links below:
If you have any questions, please refer to the FAQ page or contact Richard Bell at email@example.com | (801) 538-8662 | 60 East South Temple Street, Third Floor, Salt Lake City, UT 84111.
A fixed post-performance credit of 75% of all newly generated state revenues for 20 years. Eligible projects include the construction of electricity generation facilities of 2 megawatts or greater that utilize hydroelectric, solar, biomass, geothermal, wind, and waste-heat. 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.
Click on the links below to download a blank application
Please send completed applications firstname.lastname@example.org.
For further information regarding the Alternative Energy Development Incentive, please click below:
If you have any questions, please contact Daniel Royal at email@example.com | (801) 538-8729 | 60 East South Temple Street, Third Floor, Salt Lake City, UT 84111.
Other State Agencies’ Incentives
Governor’s Office of Economic Development Incentives
- A post-performance tax credit for up to 30% of all newly generated state revenues, for 5-10 years. This credit, which is for projects relocating to or expanding in Utah, may only be authorized for projects creating 50+ new jobs, among other criteria.
Enterprise Zones (GOED)
- Identified locally and then designated by the state, these zones recognize rural areas that are in economic distress. Once a zone is designated, businesses locating to or expanding in those zones may be eligible for certain tax incentives.
Industrial Assistance Fund (GOED)
- A post-performance grant for the creation of high-paying jobs in the state, which usually is used to partially reimburse companies for the cost of relocation: items like infrastructure, siting expenses, etc. are highlighted in the statute.
Rural Fast Track Program (GOED)
- A post-performance grant for the creation of high-paying jobs in rural areas with an average income of $60,000 or less.
- The TCIP grant program ($40,000) is meant to accelerate the process of taking university-developed, cutting-edge technologies to the market, thereby driving economic development and creating jobs.
- Tax exempt bonds meant to create a lower cost, long term source of capital for businesses, developers, households, students, and others. The federal government allocates $32 billion to the states per year on a per capita basis, and in 2013 Utah received about $292 million.
- Bond program funded by the federal government through the Private Activity Bond program (outlined below), for use on a variety of energy conservation projects or activities.
Department of Environmental Quality Incentives
- The Board has the following loan funds for use facilitating water projects for municipalities, tribes, irrigation companies, and others: Revolving Construction Fund; Cities Water Loan Fun; Conservation & Development Fund.
- Vehicles registered in Utah that are powered by propane, natural gas, and electricity are eligible for an income tax credit of 35% of the vehicle purchase price, up to $1,500. Plug-in hybrid electric vehicles will be eligible for a tax credit of $1,000.
- Program may award a total of $250,000 in grants and $250,000 in loans per year to support the purchase, conversion, or retrofit of clean fuel vehicles, or the purchase of clean fuel refueling equipment.
- Grant funds available to support retrofits, purchases, and other activities meant to improve the emissions of diesel vehicles and diesel fleets.
- Funds free home energy efficiency improvements that help low-income families (no more than 200% of the federal poverty level) reduce their energy costs.
Department of Workforce Services Incentives
- This series of funds (the “CIB”) provides loans and/or grants to state agencies, municipalities, and tribes that are socially or economically impacted by mineral resource development on federal lands.
- This set of programs includes the Home Energy Assistance Target Program (HEAT), the Home Electric Lifeline Program (HELP), and the Shut Off Protection Program.
Utah Tax Commission Incentives
Alternative Energy Sales and Use Tax Exemptions (Tax Commission)
- Exemption for purchases made by a facility that is an “alternative energy electricity production facility,” that is one megawatt or greater.