OED Administered Incentives
The Investment Tax Credit is worth 25% of eligible system cost or $2,000, whichever is less, for residential installations, and 10% of eligible system cost or $50,000, whichever is less, for commercial installations. Eligible technologies include solar photovoltaic, solar thermal, wind, geothermal, hydro and biomass.
Tax credits have gone paperless! Please click below to access the online application portal. You will be directed to a secure external website in order to fill out your tax credit application.
The Production Tax Credit is $0.0035/kilowatt hour for a project’s first four years. For the purposes of the credit, the “renewable energy” category includes: wind, geothermal and biomass. Solar is not included under the production tax credit. Please contact OED if you are aiming to pursue a Production Tax Credit.
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 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.
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.
- A credit for the purchase of qualifying vehicles, which may include natural gas vehicles ($2,500), electric vehicles ($605) and other vehicles that meet emissions standards.
- 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.