STATE STATUTES & CODES
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UTAH STATUTES AND CODES
59-10-1106 - Refundable renewable energy tax credit.
59-10-1106. Refundable renewable energy tax credit.
(1) As used in this section:
(a) "Active solar system" is as defined in Section 59-10-1014.
(b) "Biomass system" is as defined in Section 59-10-1014.
(c) "Business entity" is as defined in Section 59-10-1014.
(d) "Commercial energy system" means any active solar, passive solar, geothermalelectricity, direct-use geothermal, geothermal heat-pump system, wind, hydroenergy, or biomasssystem used to supply energy to a commercial unit or as a commercial enterprise.
(e) "Commercial enterprise" means a business entity that:
(i) is a claimant, estate, or trust; and
(ii) has the purpose of producing electrical, mechanical, or thermal energy for sale from acommercial energy system.
(f) (i) "Commercial unit" means any building or structure that a business entity that is aclaimant, estate, or trust uses to transact its business.
(ii) Notwithstanding Subsection (1)(f)(i):
(A) in the case of an active solar system used for agricultural water pumping or a windsystem, each individual energy generating device shall be a commercial unit; and
(B) if an energy system is the building or structure that a business entity that is aclaimant, estate, or trust uses to transact its business, a commercial unit is the complete energysystem itself.
(g) "Direct-use geothermal system" is as defined in Section 59-10-1014.
(h) "Geothermal electricity" is as defined in Section 59-10-1014.
(i) "Geothermal heat-pump system" is as defined in Section 59-10-1014.
(j) "Hydroenergy system" is as defined in Section 59-10-1014.
(k) "Passive solar system" is as defined in Section 59-10-1014.
(l) "Utah Geological Survey" means the Utah Geological Survey established in Section79-3-201.
(m) "Wind system" is as defined in Section 59-10-1014.
(2) (a) (i) A business entity that is a claimant, estate, or trust that purchases orparticipates in the financing of a commercial energy system situated in Utah is entitled to arefundable tax credit as provided in this Subsection (2)(a) if the commercial energy system doesnot use wind, geothermal electricity, or biomass equipment capable of producing a total of 660 ormore kilowatts of electricity and:
(A) the commercial energy system supplies all or part of the energy required bycommercial units owned or used by the business entity that is a claimant, estate, or trust; or
(B) the business entity that is a claimant, estate, or trust sells all or part of the energyproduced by the commercial energy system as a commercial enterprise.
(ii) (A) A business entity that is a claimant, estate, or trust is entitled to a tax credit of upto 10% of the reasonable costs of any commercial energy system installed, including installationcosts, against any tax due under this chapter for the taxable year in which the commercial energysystem is completed and placed in service.
(B) Notwithstanding Subsection (2)(a)(ii)(A), the total amount of the credit under thisSubsection (2)(a) may not exceed $50,000 per commercial unit.
(C) The credit under this Subsection (2)(a) is allowed for any commercial energy systemcompleted and placed in service on or after January 1, 2007.
(iii) A business entity that is a claimant, estate, or trust that leases a commercial energysystem installed on a commercial unit is eligible for the tax credit under this Subsection (2)(a) ifthe lessee can confirm that the lessor irrevocably elects not to claim the credit.
(iv) Only the principal recovery portion of the lease payments, which is the cost incurredby a business entity that is a claimant, estate, or trust in acquiring a commercial energy system,excluding interest charges and maintenance expenses, is eligible for the tax credit under thisSubsection (2)(a).
(v) A business entity that is a claimant, estate, or trust that leases a commercial energysystem is eligible to use the tax credit under this Subsection (2)(a) for a period no greater thanseven years from the initiation of the lease.
(b) (i) A business entity that is a claimant, estate, or trust that owns a commercial energysystem situated in Utah using wind, geothermal electricity, or biomass equipment capable ofproducing a total of 660 or more kilowatts of electricity is entitled to a refundable tax credit asprovided in this section if:
(A) the commercial energy system supplies all or part of the energy required bycommercial units owned or used by the business entity that is a claimant, estate, or trust; or
(B) the business entity that is a claimant, estate, or trust sells all or part of the energyproduced by the commercial energy system as a commercial enterprise.
(ii) A business entity that is a claimant, estate, or trust is entitled to a tax credit under thisSubsection (2)(b) equal to the product of:
(A) 0.35 cents; and
(B) the kilowatt hours of electricity produced and either used or sold during the taxableyear.
(iii) The credit allowed by this Subsection (2)(b):
(A) may be claimed for production occurring during a period of 48 months beginningwith the month in which the commercial energy system is placed in service; and
(B) may not be carried forward or back.
(iv) A business entity that is a claimant, estate, or trust that leases a commercial energysystem installed on a commercial unit is eligible for the tax credit under this section if the lesseecan confirm that the lessor irrevocably elects not to claim the credit.
(3) The tax credits provided for under this section are in addition to any tax creditsprovided under the laws or rules and regulations of the United States.
(4) (a) The Utah Geological Survey may set standards for commercial energy systemsclaiming a tax credit under Subsection (2)(a) that cover the safety, reliability, efficiency, leasing,and technical feasibility of the systems to ensure that the systems eligible for the tax credit usethe state's renewable and nonrenewable energy resources in an appropriate and economic manner.
(b) A tax credit may not be taken under this section until the Utah Geological Survey hascertified that the commercial energy system has been completely installed and is a viable systemfor saving or production of energy from renewable resources.
(5) The Utah Geological Survey and the commission may make rules in accordance withTitle 63G, Chapter 3, Utah Administrative Rulemaking Act, that are necessary to implement thissection.
(6) (a) On or before October 1, 2012, and every five years thereafter, the Utah TaxReview Commission shall review each tax credit provided by this section and makerecommendations to the Revenue and Taxation Interim Committee concerning whether the credit
(1) As used in this section:
(a) "Active solar system" is as defined in Section 59-10-1014.
(b) "Biomass system" is as defined in Section 59-10-1014.
(c) "Business entity" is as defined in Section 59-10-1014.
(d) "Commercial energy system" means any active solar, passive solar, geothermalelectricity, direct-use geothermal, geothermal heat-pump system, wind, hydroenergy, or biomasssystem used to supply energy to a commercial unit or as a commercial enterprise.
(e) "Commercial enterprise" means a business entity that:
(i) is a claimant, estate, or trust; and
(ii) has the purpose of producing electrical, mechanical, or thermal energy for sale from acommercial energy system.
(f) (i) "Commercial unit" means any building or structure that a business entity that is aclaimant, estate, or trust uses to transact its business.
(ii) Notwithstanding Subsection (1)(f)(i):
(A) in the case of an active solar system used for agricultural water pumping or a windsystem, each individual energy generating device shall be a commercial unit; and
(B) if an energy system is the building or structure that a business entity that is aclaimant, estate, or trust uses to transact its business, a commercial unit is the complete energysystem itself.
(g) "Direct-use geothermal system" is as defined in Section 59-10-1014.
(h) "Geothermal electricity" is as defined in Section 59-10-1014.
(i) "Geothermal heat-pump system" is as defined in Section 59-10-1014.
(j) "Hydroenergy system" is as defined in Section 59-10-1014.
(k) "Passive solar system" is as defined in Section 59-10-1014.
(l) "Utah Geological Survey" means the Utah Geological Survey established in Section79-3-201.
(m) "Wind system" is as defined in Section 59-10-1014.
(2) (a) (i) A business entity that is a claimant, estate, or trust that purchases orparticipates in the financing of a commercial energy system situated in Utah is entitled to arefundable tax credit as provided in this Subsection (2)(a) if the commercial energy system doesnot use wind, geothermal electricity, or biomass equipment capable of producing a total of 660 ormore kilowatts of electricity and:
(A) the commercial energy system supplies all or part of the energy required bycommercial units owned or used by the business entity that is a claimant, estate, or trust; or
(B) the business entity that is a claimant, estate, or trust sells all or part of the energyproduced by the commercial energy system as a commercial enterprise.
(ii) (A) A business entity that is a claimant, estate, or trust is entitled to a tax credit of upto 10% of the reasonable costs of any commercial energy system installed, including installationcosts, against any tax due under this chapter for the taxable year in which the commercial energysystem is completed and placed in service.
(B) Notwithstanding Subsection (2)(a)(ii)(A), the total amount of the credit under thisSubsection (2)(a) may not exceed $50,000 per commercial unit.
(C) The credit under this Subsection (2)(a) is allowed for any commercial energy systemcompleted and placed in service on or after January 1, 2007.
(iii) A business entity that is a claimant, estate, or trust that leases a commercial energysystem installed on a commercial unit is eligible for the tax credit under this Subsection (2)(a) ifthe lessee can confirm that the lessor irrevocably elects not to claim the credit.
(iv) Only the principal recovery portion of the lease payments, which is the cost incurredby a business entity that is a claimant, estate, or trust in acquiring a commercial energy system,excluding interest charges and maintenance expenses, is eligible for the tax credit under thisSubsection (2)(a).
(v) A business entity that is a claimant, estate, or trust that leases a commercial energysystem is eligible to use the tax credit under this Subsection (2)(a) for a period no greater thanseven years from the initiation of the lease.
(b) (i) A business entity that is a claimant, estate, or trust that owns a commercial energysystem situated in Utah using wind, geothermal electricity, or biomass equipment capable ofproducing a total of 660 or more kilowatts of electricity is entitled to a refundable tax credit asprovided in this section if:
(A) the commercial energy system supplies all or part of the energy required bycommercial units owned or used by the business entity that is a claimant, estate, or trust; or
(B) the business entity that is a claimant, estate, or trust sells all or part of the energyproduced by the commercial energy system as a commercial enterprise.
(ii) A business entity that is a claimant, estate, or trust is entitled to a tax credit under thisSubsection (2)(b) equal to the product of:
(A) 0.35 cents; and
(B) the kilowatt hours of electricity produced and either used or sold during the taxableyear.
(iii) The credit allowed by this Subsection (2)(b):
(A) may be claimed for production occurring during a period of 48 months beginningwith the month in which the commercial energy system is placed in service; and
(B) may not be carried forward or back.
(iv) A business entity that is a claimant, estate, or trust that leases a commercial energysystem installed on a commercial unit is eligible for the tax credit under this section if the lesseecan confirm that the lessor irrevocably elects not to claim the credit.
(3) The tax credits provided for under this section are in addition to any tax creditsprovided under the laws or rules and regulations of the United States.
(4) (a) The Utah Geological Survey may set standards for commercial energy systemsclaiming a tax credit under Subsection (2)(a) that cover the safety, reliability, efficiency, leasing,and technical feasibility of the systems to ensure that the systems eligible for the tax credit usethe state's renewable and nonrenewable energy resources in an appropriate and economic manner.
(b) A tax credit may not be taken under this section until the Utah Geological Survey hascertified that the commercial energy system has been completely installed and is a viable systemfor saving or production of energy from renewable resources.
(5) The Utah Geological Survey and the commission may make rules in accordance withTitle 63G, Chapter 3, Utah Administrative Rulemaking Act, that are necessary to implement thissection.
(6) (a) On or before October 1, 2012, and every five years thereafter, the Utah TaxReview Commission shall review each tax credit provided by this section and makerecommendations to the Revenue and Taxation Interim Committee concerning whether the credit
should be continued, modified, or repealed.
(b) The Utah Tax Review Commission's report under Subsection (6)(a) shall includeinformation concerning the cost of the credit, the purpose and effectiveness of the credit, and thestate's benefit from the credit.
Amended by Chapter 344, 2009 General Session
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