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 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 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:
- Solar Tax Credit (Website portal)
- Geothermal (Heat Pump) Application
- Solar Thermal (Hot Water) Application
Dr. Peter Ashcroft