Day 12 - Renewable Energy Tax Credit
Earlier this week, the Senate Revenue and Taxation Committee approved SB 13 - Tax Credits for Alternate Power Generation - sponsored by Sen. Howard Stephenson. SB13 now goes to the Senate second reading calendar for floor debate.
SB13 reauthorizes and expands and the existing renewable energy tax credit. The credit consists of two parts:
- Reauthorization of the investment credit for residential and small commercial (mostly agricultural) projects in which 25% of system construction and installation costs can be claimed as an income tax credit up to a maximum of $2,000 for residential projects and 10% of costs up to $50,000 for small commercial projects. Investment credit is not refundable.
- Creation of a new production credit of 0.35 cents for each kilowatt-hour produced for large commercial projects. Credit is refundable but cannot be carried forward or carried back.
SB13 expands the renewable energy credit to include geothermal sources.
Fiscal note is $1.2 million in year one and $2.8 million in year two.
Renewable energy producers can invest in many different states. SB13 encourages these companies to invest and produce in Utah.
Disclaimer: Like all legislation, SB13 may eventually be modified, meaning that the above points may no longer be 100% relevant.