renewable energy systems Tax Credit (RESTC)
WHAT INVESTMENTS CAN BE LEVERAGED WITH THIS TAX CREDIT?
The Renewable Energy Systems Tax Credit (RESTC) can be applied to residential and commercial renewable energy generating systems. The tax credit amount varies based on technology type and whether it is a residential or commercial installation.
Residential
Residential Eligible Technologies
The Renewable Energy Systems Tax Credit applies to residential installations utilizing solar photovoltaic (PV), wind, geothermal, hydro, biomass or certain renewable thermal technologies.
Residential Tax Credit Amount for Solar PV
The tax credit is calculated as 25% of the system cost with a maximum based on the year of installation:
|
Install Year |
Credit Maximum |
|
2023 |
$400 |
|
2022 |
$800 |
|
2021 |
$1200 |
|
2018-2020 |
$1600 |
|
2017 |
$2000 |
Residential solar PV systems installed in 2024 and beyond are not eligible for the state tax credit. Home battery installations are also not eligible for the credit.
For installations completed in 2018-2020 the maximum credit amount is $1,600. For installations completed in 2021, the maximum tax credit will be $1,200. In 2022, the maximum tax credit will be $800. For installations after December 31, 2023, there will not be a tax credit available for solar PV.
Residential Tax Credit Amount for All Other Eligible Technologies
For installations on residential dwelling units using wind, geothermal, hydro biomass technologies, or certain renewable thermal technologies, the tax credit is non-refundable and calculated as 25 percent of the eligible system cost or $2,000, whichever is less.
COMMERCIAL
Commercial Eligible Technologies
The Renewable Energy Systems Tax Credit applies to commercial installations utilizing solar PV, wind, geothermal, hydro, biomass or certain renewable thermal technologies.
Commercial Tax Credit Amount for All Eligible Renewable Technologies
For installations of commercial buildings, the tax credit is refundable and is calculated as 10 percent of the eligible system cost or $50,000, whichever is less. The tax credit amount is calculated the same for all eligible renewable energy technologies.
Application Fees
In accordance with Utah Code 63M-4-401, the Utah Governor’s Office of Energy Development (OED) charges a $15 application fee. Fees must be paid by credit card. You will not receive your TC-40E tax form until the fee has been paid. Paying the fee does not guarantee that you will be approved for the tax credit. Application fees are non-refundable.
If you have issues with your electronic application
Please email us and include the following information:
• Your name or the applicant name
• Address where the system is or will be installed
• A phone number you can be reached at
• A brief description of your issue or concern