You may claim a credit against your Utah tax liability if you or your business installs renewable energy systems.
This nonrefundable credit is for reasonable costs, including installation, of a system that supplies energy required for a Utah residential unit. Additional residential energy systems or parts may be claimed in later years as long as the total amount claimed does not exceed $2,000 per residential unit.
If you sell the residence to a non-business entity before claiming the tax credit, you may permanently transfer the tax credit to the new owner.
The principal portion of lease payments for a residential energy system may qualify for the credit, if the lessor permanently transfers the tax credit to the new owner.
You may carry any credit in excess of your tax liability forward to the next four years.
This refundable credit is for reasonable costs, including installation, of a commercial energy system that is:
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 2004, 2005, or 2006 income tax return and the tax credit was more than your tax liability for that year, the excess credit may be carried over to the next four years. If you have any excess credit that was not used in a following tax year and are carrying it to 2008, enter the amount on TC-40A, Part 4, code 03.
You must get form TC-40E, Renewable Residential and Commercial Energy Systems Tax Credits, from the Utah Geological Survey with their certification stamp, verifying the credit amount. 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
ugs.utah.gov/sep/incentives/
