Qualifying Solar Project Credit (code 24)

UC §59-10-1024

You may claim a credit of 25 percent of the amount paid to buy one or more solar units from a qualifying political subdivision, up to a maximum credit of $2,000 per year. The installation of a solar power system at a residence or business does not qualify for this credit.

A qualifying solar unit is a portion of the electrical output of an active solar project constructed, controlled or owned by a qualifying political subdivision, which generates electricity furnished to or for the benefit of one or more residential units, and is sold to the taxpayer in exchange for a credit on the taxpayer’s electric bill.

The following worksheet may be used to calculate the credit.

Qualifying Solar Project Credit Calculation
1. Amount paid for solar unit(s) $
2. Multiply line 1 by 25% (.25) $
3. Enter lesser of line 2 or $2,000. This is your credit. $
Enter this amount on TC-40A, Part 3, using code 24.

Note: Any credit that is more than the tax liability or in excess of $2,000 may be carried forward for the next four years.

There is no form for this credit. Keep all solar unit purchase documents with your records.

For more information, contact your city or electrical utility provider.