You may claim a credit against your Utah tax liability if you or your business installs a renewable energy system. Two credits are available: a non-refundable credit for renewable residential energy systems, and a refundable credit for renewable commercial energy systems. Both of these credits are explained below.
Renewable Residential Energy Systems Credit (code 21)
Utah Code §59-10-1014 and Rule 865-9I-54
Utah taxpayers may claim a non-refundable credit for the reasonable costs, including installation, of a residential energy system that supplies energy required for a Utah residential unit. Additional residential energy systems or parts may be claimed in following years as long as the total amount claimed does not exceed $2,000 per residential unit.
A residential energy system is any active solar, passive solar, biomass, direct-use geothermal, geothermal heat-pump system, wind, or hydro-energy system used to supply energy to or for any Utah residential unit, such as a house, condominium, apartment, or similar dwelling unit.
If the residence is sold to a non-business entity before claiming the tax credit, you may irrevocably transfer the tax credit to the new owner.
The principal portion of system’s lease payments for a residential energy system may qualify for the credit, if the lessor irrevocably transfers the tax credit to the new owner.
The Utah tax credit is in addition to any credit under federal law to which you may be entitled.
Any tax credit in excess of tax due will not be refunded, but may be carried forward to offset tax for up to four years.
Get form TC-40E, Renewable Residential and Commercial Energy Systems Tax Credits, from the Utah Department of Energy with their certification stamp, verifying the credit is approved and showing the amount of the approved credit.
Do not send form TC-40E with your return. Keep the form and all related documents with your records.
The credit is claimed by entering the allowable credit on Utah TC-40A, Part 4, using code 21.
Renewable Commercial Energy Systems Credit (code 39)
Utah Code §59-10-1106 and Rule 865-9I-54
Utah taxpayers may claim a refundable tax credit for the reasonable costs, including installation, of a commercial energy system that supplies energy required for a Utah commercial unit, building or structure the taxpayer uses to transact business or a commercial enterprise that produces electrical, mechanical or thermal energy for sale.
A commercial energy system is any active solar, passive solar, geothermal electricity, direct-use geothermal, geothermal heat-pump system, wind, hydro-energy, or biomass system used to supply energy to a commercial unit or as a commercial enterprise.
The Utah tax credit is in addition to any credit under federal law to which you may be entitled.
Get form TC-40E, Renewable Residential and Commercial Energy Systems Tax Credits, from the Utah Department of Energy with their certification stamp, verifying the credit is approved and showing the amount of the approved credit.
Do not send form TC-40E with your return. Keep the form and all related documents with your records.
The credit is claimed by entering the allowable credit on Utah TC-40A, Part 5, using code 39.