Solar & Battery Regulation & Incentive Programs

Alternative Energy Development Incentive (Personal)

Program Overview


Category:
Financial Incentive
Program Type:
Personal Tax Credit
Implementing Sector:
State
State:
Utah
Eligible Storage Technologies:
Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Combined Heat & Power, Landfill Gas, Wind (Small), Hydroelectric (Small)
Website:
https://energy.utah.gov/alternativeincentive/
Incentive Amount:
75% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project or 20 years, whichever is less.
Maximum Incentive:
75% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project or 20 years, whichever is less.
Eligible System Size:
Minimum: 2 MW
Administrator:
Utah Governor's Office of Energy Development
Applicable Sectors:
Commercial, Industrial
Start Date:
05/12/2009
Last Updated:
09/27/2018

Eligibility Criteria

EligibilitySectorsTechnologies
min MW2.0000
Commercial
Geothermal Electric
Solar Thermal Electric
Solar Photovoltaics
Wind (All)
Biomass
Hydroelectric
Combined Heat & Power
Landfill Gas
Wind (Small)
Hydroelectric (Small)
%75.0000
Commercial
Geothermal Electric
Solar Thermal Electric
Solar Photovoltaics
Wind (All)
Biomass
Hydroelectric
Combined Heat & Power
Landfill Gas
Wind (Small)
Hydroelectric (Small)
max Years20.0000
Commercial
Geothermal Electric
Solar Thermal Electric
Solar Photovoltaics
Wind (All)
Biomass
Hydroelectric
Combined Heat & Power
Landfill Gas
Wind (Small)
Hydroelectric (Small)

Summary

The Alternative Energy Development Incentive (AEDI) is a post-performance non-refundable tax credit for 75% of new state tax revenues (including, state, corporate, sales, and withholding taxes) over the life of the project, or 20 years, whichever is less. The actual amount and duration of an incentive is determined by the Office of Energy Development (OED) on a case-by-case basis.

Eligible projects include the construction of electricity generation facilities of 2 megawatts or greater that utilize hydroelectric, solar, biomass, geothermal, wind, or waste heat from an industrial facility or a power station in which an electric generator is driven through a process in which water is heated, turns into steam, and spins a steam turbine. It also includes energy derived from the following non-renewable energy sources: nuclear fuel, oil-impregnated diatomaceous earth, oil sands, oil shale, or petroleum coke. To qualify for an incentive, the project must generate new state revenue and new incremental jobs, and it must involve significant capital investment, or the creation of high paying jobs.

To receive a tax credit, projects owners must first apply to the OED for a tax credit certificate and provide all the documents specified in Utah Code 63M-4-504. If the OED approves the application and issues a tax credit certificate, it will issue a duplicate copy to the state Tax Commission. To maintain eligibility for the tax credit, the project owners must:

  • Annually file a report with the OED showing the new state revenues generated by the alternative energy project during the taxable year for which they are seeking to receive a tax credit
  • Annually file a report with the OED prepared by an independent certified public accountant verifying the new state revenue
  • Provide the OED with any information required by the OED to certify the economic life of the alternative energy project, which may include a power purchase agreement, a lease, or a permit; and
  • Retain records supporting a claim for a tax credit for at least four years

Authorities

NameEnacted DateEffective DateExpired Date
Utah Code 63M-4-501, et seq.
Utah Code 59-10-1029
UAC 362-1
Utah Code 59-12-102