Bill > HB0264

This bill modifies Utah's clean energy tax credit system by updating existing tax credit provisions for residential and commercial energy systems through several key changes. The bill extends the availability of clean energy system tax credits for systems completed and placed in service before January 1, 2028, and makes adjustments to the tax credit structure for various types of renewable energy systems, including solar, wind, geothermal, biomass, and hydrogen production systems. For residential solar photovoltaic systems, the bill continues a gradual reduction in tax credit amounts, with the credit dropping to $0 for systems installed after January 1, 2024. The bill maintains existing provisions for commercial energy systems, allowing tax credits for systems that produce electricity or supply energy to commercial units, with specific limits on kilowatt production and total credit amounts. Additionally, the bill repeals several existing alternative energy development tax credits, including the nonrefundable alternative energy development tax credit and the nonrefundable tax credit for qualifying solar projects. The bill is set to take effect on May 7, 2025, with retrospective operation for taxable years beginning on or after January 1, 2025, and aims to continue supporting clean energy development in Utah while gradually reducing certain incentives.

Budget and Finance

https://le.utah.gov/~2025/bills/static/HB0264.html