2023 Utah Code › Title 59 - Revenue and Taxation › Chapter 10 - Individual Income Tax Act › Part 10 - Nonrefundable Tax Credit Act › Section 1024 - Nonrefundable tax credit for qualifying solar projects.

Effective 7/1/2021
59-10-1024.
Nonrefundable tax credit for qualifying solar projects.
(1) As used in this section:
(a) "Active solar system" means the same as that term is defined in Section 59-10-1014.
(b) "Office" means the Office of Energy Development created in Section 79-6-401.
(c) "Purchaser" means a claimant, estate, or trust that purchases one or more solar units from a qualifying political subdivision.
(d) "Qualifying political subdivision" means:
(i) a city or town in this state;
(ii) an interlocal entity created under Title 11, Chapter 13, Interlocal Cooperation Act; or
(iii) a special service district created under Title 17D, Chapter 1, Special Service District Act.
(e) "Qualifying solar project" means the portion of an active solar system:
(i) that a qualifying political subdivision:
(A) constructs;
(B) controls; or
(C) owns;
(ii) with respect to which the qualifying political subdivision sells one or more solar units; and
(iii) that generates electrical output that is furnished:
(A) to one or more residential units; or
(B) for the benefit of one or more residential units.
(f) "Residential unit" means the same as that term is defined in Section 59-10-1014.
(g) "Solar unit" means a portion of the electrical output:
(i) of a qualifying solar project;
(ii) that a qualifying political subdivision sells to a purchaser; and
(iii) the purchase of which requires that the purchaser agree to bear a proportionate share of the expense of the qualifying solar project:
(A) in accordance with a written agreement between the purchaser and the qualifying political subdivision;
(B) in exchange for a credit on the purchaser's electrical bill; and
(C) as determined by a formula established by the qualifying political subdivision.
(2)
(a) Subject to Subsections (2)(b) and (3), a purchaser may claim a nonrefundable tax credit equal to the amount stated on a tax credit certificate issued by the office.
(b) The maximum tax credit per taxpayer per taxable year is the lesser of:
(i) 25% of the amount that the purchaser pays to purchase one or more solar units during the taxable year; and
(ii) $2,000.
(3)
(a) To claim a tax credit under this section, a purchaser shall receive a tax credit certificate from the office.
(b) The purchaser shall submit, with the purchaser's application for a tax credit certificate, proof of the purchaser's purchase of one or more solar units.
(c) If the office determines that the purchaser purchased one or more solar units during the taxable year, the office shall:
(i) determine the amount of the purchaser's tax credit; and
(ii) issue, on a form approved by the commission, a tax credit certificate to the purchaser that states the amount of the purchaser's tax credit.
(d) If the office determines that a claimant, estate, or trust requesting a tax credit certificate is not eligible for a tax credit certificate under this section but may be eligible for a tax credit certificate under Section 59-10-1014, the office shall treat the claimant, estate, or trust as applying for a written certification in accordance with Section 59-10-1014.
(e) A purchaser who receives a tax credit certificate shall retain the tax credit certificate for the same time period that a person is required to keep books and records under Section 59-1-1406.
(f) The office shall submit to the commission an electronic list that includes:
(i) the name and identifying information of each purchaser to whom the office issued a certificate; and
(ii) for each claimant, estate, or trust:
(A) the amount of the tax credit listed on the written certification; and
(B) the date or dates the claimant, estate, or trust purchased one or more solar units.
(4) A purchaser may carry forward a tax credit under this section for a period that does not exceed the next four taxable years if:
(a) the purchaser is allowed to claim a tax credit under this section for a taxable year; and
(b) the amount of the tax credit exceeds the purchaser's tax liability under this chapter for that taxable year.
(5) Subject to Section 59-10-1014, a tax credit under this section is in addition to any other tax credit allowed by this chapter.
(6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the office may make rules to govern the application process for receiving a tax credit certificate.
Amended by Chapter 280, 2021 General Session