Utah individuals and businesses that install renewable energy systems may claim a credit against their Utah tax liability.
This nonrefundable credit is for the reasonable costs, including installation, of a residential energy system that supplies energy required for a residential unit in Utah. Additional residential energy systems or parts may be claimed in subsequent years as long as the total amount claimed does not exceed $2,000 per residential unit.
If the residence is sold to another, who is not a business entity, before claiming the tax credit, the taxpayer may irrevocably transfer to the new owner the right to the tax credit.
The principal portion of lease payments for a residential energy system may qualify for the credit, if the lessor irrevocably transfers to the new owner the right to the tax credit.
Credit in excess of the taxpayer's liability may be carried forward to the four succeeding years.
This refundable credit is for the reasonable costs, including installation, of a commercial energy system that is an active solar system, a direct-use geothermal system, a geothermal heat-pump system, a hydroenergy system, or a passive solar system. Credit is also allowed for a commercial system that uses wind, geothermal electricity, or biomass equipment.
If you claimed a nonrefundable renewable energy systems tax credit on your 2003, 2004, 2005, or 2006 income tax return, and the tax credit was in excess of your tax liability for the year claimed, the excess credit may be carried over to the four succeeding years. If you have any excess credit that was not used against a subsequent tax year liability, and are carrying over that excess credit to 2007, enter the unused carryover on TC-40S, Part 4, code 03.
Form TC-40E, Renewable Residential and Commercial Energy Systems Tax Credits, must be obtained form the Utah Geological Survey with their certification stamp, verifying the credit has been approved and showing the amount of the approved credit. Do not send form TC-40E with your Utah tax return. Keep the form and all related documents with your records.
Utah Geological Survey (UGS)
1594 W North Temple
Box 146100
Salt Lake City, UT 84114-6100
(801) 537-3300
geology.utah.gov/sep/incentives/
