Renewable Energy Systems Tax Credit
What is the Renewable Energy Systems Tax Credit?
The Renewable Energy Systems Tax Credit can be applied to both residential and commercial installations utilizing solar photovoltaic, solar thermal, wind, geothermal, hydro, and biomass technologies. The 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 average processing time for Residential Tax Credits submitted through the online portal is 4-6 weeks.
- 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. The average processing time for Commercial Tax Credits submitted through the online portal is 4-6 weeks.
- How to apply for the Residential or Commercial Tax Credit can be found below in the Tax Credit Applications section.
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 Peter Ashcroft 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:
- Residential or Commercial Solar PV Tax Credit (applications are submitted online only)
- Geothermal (Heat Pump) Application
- Solar Thermal (Hot Water) Application
Starting August 15, 2018 in accordance with Utah Code 63M-4-401, the Governor’s Office of Energy Development will begin charging a $15 fee per application submitted. Fees must be paid by check.
You will not be able to 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.
Please make checks payable to the Governor’s Office of Energy Development and mail checks to:
Governor’s Office of Energy Development
P.O. Box 144845
Salt Lake City, UT 84114-4845
On the check, please include the taxpayer name(s) that appears on the application as well as the address where the solar system was installed.
If you require assistance, please submit an email to email@example.com with the following information:
1. Your name or the applicant name
2. Address where the system is or will be installed
3. A phone # you can be reached at
4. A brief description of your issue or concern
A member of the OED team will respond within 3 business days.