Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 264 (2025GS)

Sponsor

Rep. Christofferson, Kay J.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• limits the eligibility for claiming the corporate or individual income tax credit for clean energy systems to systems that are placed in service before January 1, 2035; and
• repeals the individual income tax credit for qualifying solar projects and the corporate and individual income tax credits for alternative energy development.

Every vote on this bill

Bill text

16
59-7-614
59-7-614.7
59-10-1014
59-10-1024
59-10-1029
59-10-1106
59-7-614
59-7-614.7
59-10-1014
59-10-1024
59-10-1029
59-10-1106
0
Tax Incentives Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kay J. Christofferson
Senate Sponsor: Brady Brammer
LONG TITLE
General Description:
This bill modifies and repeals provisions related to income tax incentives.
Highlighted Provisions:
This bill:
limits the eligibility for claiming the corporate or individual income tax credit for clean 
energy systems to systems that are placed in service before January 1, 2028; and
repeals the individual income tax credit for qualifying solar projects and the corporate and 
individual income tax credits for alternative energy development.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
59-7-614
, as last amended by Laws of Utah 2024, Chapter 53
59-10-1014
, as last amended by Laws of Utah 2024, Chapter 53
59-10-1106
, as last amended by Laws of Utah 2024, Chapter 53
REPEALS:
59-7-614.7
, as last amended by Laws of Utah 2023, Chapter 482
59-10-1024
, as last amended by Laws of Utah 2021, Chapter 280
59-10-1029
, as last amended by Laws of Utah 2023, Chapter 482
Be it enacted by the Legislature of the state of Utah:
Section 1, Section 
59-7-614
 is amended to read:
59-7-614
. Clean energy systems tax credits -- Definitions -- Certification -- 
Rulemaking authority.
(1)
As used in this section:
(a)
(i)
"Active solar system" means a system of equipment that is capable of:
(A)
collecting and converting incident solar radiation into thermal, mechanical, or 
electrical energy; and
(B)
transferring a form of energy described in Subsection (1)(a)(i)(A) by a 
separate apparatus to storage or to the point of use.
(ii)
"Active solar system" includes water heating, space heating or cooling, and 
electrical or mechanical energy generation.
(b)
"Biomass system" means a system of apparatus and equipment for use in:
(i)
converting material into biomass energy, as defined in Section 
59-12-102
; and
(ii)
transporting the biomass energy by separate apparatus to the point of use or 
storage.
(c)
"Clean energy source" means the same as that term is defined in Section 
54-17-601
.
(d)
"Commercial energy system" means a system that is:
(i)
(A)
an active solar system;
(B)
a biomass system;
(C)
a direct use geothermal system;
(D)
a geothermal electricity system;
(E)
a geothermal heat pump system;
(F)
a hydroenergy system;
(G)
a passive solar system; or
(H)
a wind system;
(ii)
located in the state; and
(iii)
used:
(A)
to supply energy to a commercial unit; or
(B)
as a commercial enterprise.
(e)
"Commercial enterprise" means an entity, the purpose of which is to produce:
(i)
electrical, mechanical, or thermal energy for sale from a commercial energy 
system; or
(ii)
hydrogen for sale from a hydrogen production system.
(f)
(i)
"Commercial unit" means a building or structure that an entity uses to transact 
business.
(ii)
Notwithstanding Subsection (1)(f)(i):
(A)
with respect to an active solar system used for agricultural water pumping or a 
wind system, each individual energy generating device is considered to be a 
commercial unit; or
(B)
if an energy system is the building or structure that an entity uses to transact 
business, a commercial unit is the complete energy system itself.
(g)
"Direct use geothermal system" means a system of apparatus and equipment that 
enables the direct use of geothermal energy to meet energy needs, including heating a 
building, an industrial process, and aquaculture.
(h)
"Geothermal electricity" means energy that is:
(i)
contained in heat that continuously flows outward from the earth; and
(ii)
used as a sole source of energy to produce electricity.
(i)
"Geothermal energy" means energy generated by heat that is contained in the earth.
(j)
"Geothermal heat pump system" means a system of apparatus and equipment that:
(i)
enables the use of thermal properties contained in the earth at temperatures well 
below 100 degrees Fahrenheit; and
(ii)
helps meet heating and cooling needs of a structure.
(k)
"Hydroenergy system" means a system of apparatus and equipment that is capable of:
(i)
intercepting and converting kinetic water energy into electrical or mechanical 
energy; and
(ii)
transferring this form of energy by separate apparatus to the point of use or 
storage.
(l)
"Hydrogen production system" means a system of apparatus and equipment, located 
in this state, that uses:
(i)
electricity from a clean energy source to create hydrogen gas from water, 
regardless of whether the clean energy source is at a separate facility or the same 
facility as the system of apparatus and equipment; or
(ii)
uses renewable natural gas to produce hydrogen gas.
(m)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(n)
(i)
"Passive solar system" means a direct thermal system that utilizes the structure 
of a building and the structure's operable components to provide for collection, 
storage, and distribution of heating or cooling during the appropriate times of the 
year by utilizing the climate resources available at the site.
(ii)
"Passive solar system" includes those portions and components of a building that 
are expressly designed and required for the collection, storage, and distribution of 
solar energy.
(o)
"Photovoltaic system" means an active solar system that generates electricity from 
sunlight.
(p)
(i)
"Principal recovery portion" means the portion of a lease payment that 
constitutes the cost a person incurs in acquiring a commercial energy system.
(ii)
"Principal recovery portion" does not include:
(A)
an interest charge; or
(B)
a maintenance expense.
(q)
"Residential energy system" means the following used to supply energy to or for a 
residential unit:
(i)
an active solar system;
(ii)
a biomass system;
(iii)
a direct use geothermal system;
(iv)
a geothermal heat pump system;
(v)
a hydroenergy system;
(vi)
a passive solar system; or
(vii)
a wind system.
(r)
(i)
"Residential unit" means a house, condominium, apartment, or similar dwelling 
unit that:
(A)
is located in the state; and
(B)
serves as a dwelling for a person, group of persons, or a family.
(ii)
"Residential unit" does not include property subject to a fee under:
(A)
Section 
59-2-405
;
(B)
Section 
59-2-405.1
;
(C)
Section 
59-2-405.2
;
(D)
Section 
59-2-405.3
; or
(E)
Section 
72-10-110.5
.
(s)
"Wind system" means a system of apparatus and equipment that is capable of:
(i)
intercepting and converting wind energy into mechanical or electrical energy; and
(ii)
transferring these forms of energy by a separate apparatus to the point of use, 
sale, or storage.
(2)
A taxpayer may claim an energy system tax credit as provided in this section against a 
tax due under this chapter for 
a taxable year
an energy system that is completed and 
placed in service before January 1, 2028
.
(3)
(a)
Subject to the other provisions of this Subsection (3), a taxpayer may claim a 
nonrefundable tax credit under this Subsection (3) with respect to a residential unit 
the taxpayer owns or uses if:
(i)
the taxpayer:
(A)
purchases and completes a residential energy system to supply all or part of 
the energy required for the residential unit; or
(B)
participates in the financing of a residential energy system to supply all or part 
of the energy required for the residential unit; and
(ii)
the taxpayer obtains a written certification from the office in accordance with 
Subsection (8).
(b)
(i)
Subject to Subsections (3)(b)(ii) through (iv) and, as applicable, Subsection 
(3)(c) or (d), the tax credit is equal to 25% of the reasonable costs of each 
residential energy system installed with respect to each residential unit the 
taxpayer owns or uses.
(ii)
A tax credit under this Subsection (3) may include installation costs.
(iii)
A taxpayer may claim a tax credit under this Subsection (3) for the taxable year 
in which the residential energy system is completed and placed in service.
(iv)
If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax 
liability under this chapter for a taxable year, the taxpayer may carry forward the 
amount of the tax credit exceeding the liability for a period that does not exceed 
the next four taxable years.
(c)
The total amount of tax credit a taxpayer may claim under this Subsection (3) for a 
residential energy system, other than a photovoltaic system, may not exceed $2,000 
per residential unit.
(d)
The total amount of tax credit a taxpayer may claim under this Subsection (3) for a 
photovoltaic system may not exceed:
(i)
for a system installed on or after January 1, 2018, but on or before December 31, 
2020, $1,600;
(ii)
for a system installed on or after January 1, 2021, but on or before December 31, 
2021, $1,200;
(iii)
for a system installed on or after January 1, 2022, but on or before December 31, 
2022, $800;
(iv)
for a system installed on or after January 1, 2023, but on or before December 31, 
2023, $400; and
(v)
for a system installed on or after January 1, 2024, $0.
(e)
If a taxpayer sells a residential unit to another person before the taxpayer claims the 
tax credit under this Subsection (3):
(i)
the taxpayer may assign the tax credit to the other person; and
(ii)
(A)
if the other person files a return under this chapter, the other person may 
claim the tax credit under this section as if the other person had met the 
requirements of this section to claim the tax credit; or
(B)
if the other person files a return under Chapter 10, Individual Income Tax Act, 
the other person may claim the tax credit under Section 
59-10-1014
 as if the 
other person had met the requirements of Section 
59-10-1014
 to claim the tax 
credit.
(4)
(a)
Subject to the other provisions of this Subsection (4), a taxpayer may claim a 
refundable tax credit under this Subsection (4) with respect to a commercial energy 
system if:
(i)
the commercial energy system does not use:
(A)
wind, geothermal electricity, solar, or biomass equipment capable of 
producing a total of 660 or more kilowatts of electricity; or
(B)
solar equipment capable of producing 2,000 or more kilowatts of electricity;
(ii)
the taxpayer purchases or participates in the financing of the commercial energy 
system;
(iii)
(A)
the commercial energy system supplies all or part of the energy required 
by commercial units owned or used by the taxpayer; or
(B)
the taxpayer sells all or part of the energy produced by the commercial energy 
system as a commercial enterprise;
(iv)
the taxpayer has not claimed and will not claim a tax credit under Subsection (7) 
for hydrogen production using electricity for which the taxpayer claims a tax 
credit under this Subsection (4); and
(v)
the taxpayer obtains a written certification from the office in accordance with 
Subsection (8).
(b)
(i)
Subject to Subsections (4)(b)(ii) through (iv), the tax credit is equal to 10% of 
the reasonable costs of the commercial energy system.
(ii)
A tax credit under this Subsection (4) may include installation costs.
(iii)
A taxpayer is eligible to claim a tax credit under this Subsection (4) for the 
taxable year in which the commercial energy system is completed and placed in 
service.
(iv)
The total amount of tax credit a taxpayer may claim under this Subsection (4) 
may not exceed $50,000 per commercial unit.
(c)
(i)
Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a 
commercial energy system installed on a commercial unit may claim a tax credit 
under this Subsection (4) if the taxpayer confirms that the lessor irrevocably elects 
not to claim the tax credit.
(ii)
A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this 
Subsection (4) only the principal recovery portion of the lease payments.
(iii)
A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this 
Subsection (4) for a period that does not exceed seven taxable years after the day 
on which the lease begins, as stated in the lease agreement.
(5)
(a)
Subject to the other provisions of this Subsection (5), a taxpayer may claim a 
refundable tax credit under this Subsection (5) with respect to a commercial energy 
system if:
(i)
the commercial energy system uses wind, geothermal electricity, or biomass 
equipment capable of producing a total of 660 or more kilowatts of electricity;
(ii)
(A)
the commercial energy system supplies all or part of the energy required by 
commercial units owned or used by the taxpayer; or
(B)
the taxpayer sells all or part of the energy produced by the commercial energy 
system as a commercial enterprise;
(iii)
the taxpayer has not claimed and will not claim a tax credit under Subsection (7) 
for hydrogen production using electricity for which the taxpayer claims a tax 
credit under this Subsection (5); and
(iv)
the taxpayer obtains a written certification from the office in accordance with 
Subsection (8).
(b)
(i)
Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal 
to the product of:
(A)
0.35 cents; and
(B)
the kilowatt hours of electricity produced and used or sold during the taxable 
year.
(ii)
A taxpayer is eligible to claim a tax credit under this Subsection (5) for 
production occurring during a period of 48 months beginning with the month in 
which the commercial energy system is placed in commercial service.
(c)
A taxpayer that is a lessee of a commercial energy system installed on a commercial 
unit may claim a tax credit under this Subsection (5) if the taxpayer confirms that the 
lessor irrevocably elects not to claim the tax credit.
(6)
(a)
Subject to the other provisions of this Subsection (6), a taxpayer may claim a 
refundable tax credit as provided in this Subsection (6) if:
(i)
the taxpayer owns a commercial energy system that uses solar equipment capable 
of producing a total of 660 or more kilowatts of electricity;
(ii)
(A)
the commercial energy system supplies all or part of the energy required by 
commercial units owned or used by the taxpayer; or
(B)
the taxpayer sells all or part of the energy produced by the commercial energy 
system as a commercial enterprise;
(iii)
the taxpayer does not claim a tax credit under Subsection (4) and has not claimed 
and will not claim a tax credit under Subsection (7) for hydrogen production using 
electricity for which a taxpayer claims a tax credit under this Subsection (6); and
(iv)
the taxpayer obtains a written certification from the office in accordance with 
Subsection (8).
(b)
(i)
Subject to Subsection (6)(b)(ii), a tax credit under this Subsection (6) is equal 
to the product of:
(A)
0.35 cents; and
(B)
the kilowatt hours of electricity produced and used or sold during the taxable 
year.
(ii)
A taxpayer is eligible to claim a tax credit under this Subsection (6) for 
production occurring during a period of 48 months beginning with the month in 
which the commercial energy system is placed in commercial service.
(c)
A taxpayer that is a lessee of a commercial energy system installed on a commercial 
unit may claim a tax credit under this Subsection (6) if the taxpayer confirms that the 
lessor irrevocably elects not to claim the tax credit.
(7)
(a)
A taxpayer may claim a refundable tax credit as provided in this Subsection (7) if:
(i)
the taxpayer owns a hydrogen production system;
(ii)
the hydrogen production system is completed and placed in service on or after 
January 1, 2022;
(iii)
the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own 
use in commercial units, the hydrogen produced from the hydrogen production 
system;
(iv)
the taxpayer has not claimed and will not claim a tax credit under Subsection (4), 
(5), or (6) or Section 
59-7-626
 for electricity or hydrogen used to meet the 
requirements of this Subsection (7); and
(v)
the taxpayer obtains a written certification from the office in accordance with 
Subsection (8).
(b)
(i)
Subject to Subsections (7)(b)(ii) and (iii), a tax credit under this Subsection (7) 
is equal to the product of:
(A)
$0.12; and
(B)
the number of kilograms of hydrogen produced during the taxable year.
(ii)
A taxpayer may not receive a tax credit under this Subsection (7) for more than 
5,600 metric tons of hydrogen per taxable year.
(iii)
A taxpayer is eligible to claim a tax credit under this Subsection (7) for 
production occurring during a period of 48 months beginning with the month in 
which the hydrogen production system is placed in commercial service.
(8)
(a)
Before a taxpayer may claim a tax credit under this section, the taxpayer shall 
obtain a written certification from the office.
(b)
The office shall issue a taxpayer a written certification if the office determines that:
(i)
the taxpayer meets the requirements of this section to receive a tax credit; and
(ii)
the residential energy system, the commercial energy system, or the hydrogen 
production system with respect to which the taxpayer seeks to claim a tax credit:
(A)
has been completely installed;
(B)
is a viable system for saving or producing energy from clean resources; and
(C)
is safe, reliable, efficient, and technically feasible to ensure that the residential 
energy system, the commercial energy system, or the hydrogen production 
system uses the state's clean and nonrenewable energy resources in an 
appropriate and economic manner.
(c)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
office may make rules:
(i)
for determining whether a residential energy system, a commercial energy system, 
or a hydrogen production system meets the requirements of Subsection (8)(b)(ii); 
and
(ii)
for purposes of a tax credit under Subsection (3) or (4), establishing the 
reasonable costs of a residential energy system or a commercial energy system, as 
an amount per unit of energy production.
(d)
A taxpayer that obtains a written certification from the office shall retain the 
certification for the same time period a person is required to keep books and records 
under Section 
59-1-1406
.
(e)
The office shall submit to the commission an electronic list that includes:
(i)
the name and identifying information of each taxpayer to which the office issues a 
written certification; and
(ii)
for each taxpayer:
(A)
the amount of the tax credit listed on the written certification; and
(B)
the date the clean energy system was installed.
(9)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
commission may make rules to address the certification of a tax credit under this section.
(10)
A tax credit under this section is in addition to any tax credits provided under the laws 
or rules and regulations of the United States.
(11)
A taxpayer may not claim or carry forward a tax credit described in this section in a 
taxable year during which the taxpayer claims or carries forward a tax credit under 
Section 
59-7-614.7
.
Section 2, Section 
59-10-1014
 is amended to read:
59-10-1014
. Nonrefundable clean energy systems tax credits -- Definitions -- 
Certification -- Rulemaking authority.
(1)
As used in this section:
(a)
(i)
"Active solar system" means a system of equipment that is capable of:
(A)
collecting and converting incident solar radiation into thermal, mechanical, or 
electrical energy; and
(B)
transferring a form of energy described in Subsection (1)(a)(i)(A) by a 
separate apparatus to storage or to the point of use.
(ii)
"Active solar system" includes water heating, space heating or cooling, and 
electrical or mechanical energy generation.
(b)
"Biomass system" means a system of apparatus and equipment for use in:
(i)
converting material into biomass energy, as defined in Section 
59-12-102
; and
(ii)
transporting the biomass energy by separate apparatus to the point of use or 
storage.
(c)
"Direct use geothermal system" means a system of apparatus and equipment that 
enables the direct use of geothermal energy to meet energy needs, including heating a 
building, an industrial process, and aquaculture.
(d)
"Geothermal electricity" means energy that is:
(i)
contained in heat that continuously flows outward from the earth; and
(ii)
used as a sole source of energy to produce electricity.
(e)
"Geothermal energy" means energy generated by heat that is contained in the earth.
(f)
"Geothermal heat pump system" means a system of apparatus and equipment that:
(i)
enables the use of thermal properties contained in the earth at temperatures well 
below 100 degrees Fahrenheit; and
(ii)
helps meet heating and cooling needs of a structure.
(g)
"Hydroenergy system" means a system of apparatus and equipment that is capable of:
(i)
intercepting and converting kinetic water energy into electrical or mechanical 
energy; and
(ii)
transferring this form of energy by separate apparatus to the point of use or 
storage.
(h)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(i)
(i)
"Passive solar system" means a direct thermal system that utilizes the structure 
of a building and its operable components to provide for collection, storage, and 
distribution of heating or cooling during the appropriate times of the year by 
utilizing the climate resources available at the site.
(ii)
"Passive solar system" includes those portions and components of a building that 
are expressly designed and required for the collection, storage, and distribution of 
solar energy.
(j)
"Photovoltaic system" means an active solar system that generates electricity from 
sunlight.
(k)
(i)
"Principal recovery portion" means the portion of a lease payment that 
constitutes the cost a person incurs in acquiring a residential energy system.
(ii)
"Principal recovery portion" does not include:
(A)
an interest charge; or
(B)
a maintenance expense.
(l)
"Residential energy system" means the following used to supply energy to or for a 
residential unit:
(i)
an active solar system;
(ii)
a biomass system;
(iii)
a direct use geothermal system;
(iv)
a geothermal heat pump system;
(v)
a hydroenergy system;
(vi)
a passive solar system; or
(vii)
a wind system.
(m)
(i)
"Residential unit" means a house, condominium, apartment, or similar 
dwelling unit that:
(A)
is located in the state; and
(B)
serves as a dwelling for a person, group of persons, or a family.
(ii)
"Residential unit" does not include property subject to a fee under:
(A)
Section 
59-2-405
;
(B)
Section 
59-2-405.1
;
(C)
Section 
59-2-405.2
;
(D)
Section 
59-2-405.3
; or
(E)
Section 
72-10-110.5
.
(n)
"Wind system" means a system of apparatus and equipment that is capable of:
(i)
intercepting and converting wind energy into mechanical or electrical energy; and
(ii)
transferring these forms of energy by a separate apparatus to the point of use or 
storage.
(2)
A claimant, estate, or trust may claim an energy system tax credit as provided in this 
section against a tax due under this chapter for 
a taxable year
an energy system that is 
completed and placed in service before January 1, 2028
.
(3)
For a taxable year beginning on or after January 1, 2007, a claimant, estate, or trust may 
claim a nonrefundable tax credit under this section with respect to a residential unit the 
claimant, estate, or trust owns or uses if:
(a)
the claimant, estate, or trust:
(i)
purchases and completes a residential energy system to supply all or part of the 
energy required for the residential unit; or
(ii)
participates in the financing of a residential energy system to supply all or part of 
the energy required for the residential unit;
(b)
the residential energy system is installed on or after January 1, 2007; and
(c)
the claimant, estate, or trust obtains a written certification from the office in 
accordance with Subsection (5).
(4)
(a)
For a residential energy system, other than a photovoltaic system, the tax credit 
described in this section is equal to the lesser of:
(i)
25% of the reasonable costs, including installation costs, of each residential 
energy system installed with respect to each residential unit the claimant, estate, or 
trust owns or uses; and
(ii)
$2,000.
(b)
Subject to Subsection (5)(d), for a residential energy system that is a photovoltaic 
system, the tax credit described in this section is equal to the lesser of:
(i)
25% of the reasonable costs, including installation costs, of each system installed 
with respect to each residential unit the claimant, estate, or trust owns or uses; or
(ii)
(A)
for a system installed on or after January 1, 2007, but on or before 
December 31, 2017, $2,000;
(B)
for a system installed on or after January 1, 2018, but on or before December 
31, 2020, $1,600;
(C)
for a system installed on or after January 1, 2021, but on or before December 
31, 2021, $1,200;
(D)
for a system installed on or after January 1, 2022, but on or before December 
31, 2022, $800;
(E)
for a system installed on or after January 1, 2023, but on or before December 
31, 2023, $400; and
(F)
for a system installed on or after January 1, 2024, $0.
(c)
(i)
The office shall determine the amount of the tax credit that a claimant, estate, or 
trust may claim and list that amount on the written certification that the office 
issues under Subsection (5).
(ii)
The claimant, estate, or trust may claim the tax credit in the amount listed on the 
written certification that the office issues under Subsection (5).
(d)
A claimant, estate, or trust may claim a tax credit under Subsection (3) for the 
taxable year in which the residential energy system is installed.
(e)
If the amount of a tax credit listed on the written certification exceeds a claimant's, 
estate's, or trust's tax liability under this chapter for a taxable year, the claimant, 
estate, or trust may carry forward the amount of the tax credit exceeding the liability 
for a period that does not exceed the next four taxable years.
(f)
A claimant, estate, or trust may claim a tax credit with respect to additional 
residential energy systems or parts of residential energy systems for a subsequent 
taxable year if the total amount of tax credit the claimant, estate, or trust claims does 
not exceed $2,000 per residential unit.
(g)
(i)
Subject to Subsections (4)(g)(ii) and (iii), a claimant, estate, or trust that leases 
a residential energy system installed on a residential unit may claim a tax credit 
under Subsection (3) if the claimant, estate, or trust confirms that the lessor 
irrevocably elects not to claim the tax credit.
(ii)
A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a 
residential energy system may claim as a tax credit under Subsection (3) only the 
principal recovery portion of the lease payments.
(iii)
A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a 
residential energy system may claim a tax credit under Subsection (3) for a period 
that does not exceed seven taxable years after the date the lease begins, as stated 
in the lease agreement.
(h)
If a claimant, estate, or trust sells a residential unit to another person before the 
claimant, estate, or trust claims the tax credit under Subsection (3):
(i)
the claimant, estate, or trust may assign the tax credit to the other person; and
(ii)
(A)
if the other person files a return under Chapter 7, Corporate Franchise and 
Income Taxes, the other person may claim the tax credit as if the other person 
had met the requirements of Section 
59-7-614
 to claim the tax credit; or
(B)
if the other person files a return under this chapter, the other person may claim 
the tax credit under this section as if the other person had met the requirements 
of this section to claim the tax credit.
(5)
(a)
Before a claimant, estate, or trust may claim a tax credit under this section, the 
claimant, estate, or trust shall obtain a written certification from the office.
(b)
The office shall issue a claimant, estate, or trust a written certification if the office 
determines that:
(i)
the claimant, estate, or trust meets the requirements of this section to receive a tax 
credit; and
(ii)
the office determines that the residential energy system with respect to which the 
claimant, estate, or trust seeks to claim a tax credit:
(A)
has been completely installed;
(B)
is a viable system for saving or producing energy from clean resources; and
(C)
is safe, reliable, efficient, and technically feasible to ensure that the residential 
energy system uses the state's renewable and nonrenewable energy resources in 
an appropriate and economic manner.
(c)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
office may make rules:
(i)
for determining whether a residential energy system meets the requirements of 
Subsection (5)(b)(ii); and
(ii)
for purposes of determining the amount of a tax credit that a claimant, estate, or 
trust may receive under Subsection (4), establishing the reasonable costs of a 
residential energy system, as an amount per unit of energy production.
(d)
A claimant, estate, or trust that obtains a written certification from the office shall 
retain the certification for the same time period a person is required to keep books 
and records under Section 
59-1-1406
.
(e)
The office shall submit to the commission an electronic list that includes:
(i)
the name and identifying information of each claimant, estate, or trust to which the 
office issues a written certification; and
(ii)
for each claimant, estate, or trust:
(A)
the amount of the tax credit listed on the written certification; and
(B)
the date the clean energy system was installed.
(6)
A tax credit under this section is in addition to any tax credits provided under the laws 
or rules and regulations of the United States.
(7)
A purchaser of one or more solar units that claims a tax credit under Section 
59-10-1024
for the purchase of the one or more solar units may not claim a tax credit under this 
section for that purchase.
Section 3, Section 
59-10-1106
 is amended to read:
59-10-1106
. Refundable clean energy systems tax credits -- Definitions -- 
Certification -- Rulemaking authority.
(1)
As used in this section:
(a)
"Active solar system" means the same as that term is defined in Section 
59-10-1014
.
(b)
"Biomass system" means the same as that term is defined in Section 
59-10-1014
.
(c)
"Commercial energy system" means the same as that term is defined in Section 
59-7-614
.
(d)
"Commercial enterprise" means the same as that term is defined in Section 
59-7-614
.
(e)
"Commercial unit" means the same as that term is defined in Section 
59-7-614
.
(f)
"Direct use geothermal system" means the same as that term is defined in Section 
59-10-1014
.
(g)
"Geothermal electricity" means the same as that term is defined in Section 
59-10-1014
.
(h)
"Geothermal energy" means the same as that term is defined in Section 
59-10-1014
.
(i)
"Geothermal heat pump system" means the same as that term is defined in Section 
59-10-1014
.
(j)
"Hydroenergy system" means the same as that term is defined in Section 
59-10-1014
.
(k)
"Hydrogen production system" means the same as that term is defined in Section 
59-7-614
.
(l)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(m)
"Passive solar system" means the same as that term is defined in Section 
59-10-1014
.
(n)
"Principal recovery portion" means the same as that term is defined in Section 
59-10-1014
.
(o)
"Wind system" means the same as that term is defined in Section 
59-10-1014
.
(2)
A claimant, estate, or trust may claim an energy system tax credit as provided in this 
section against a tax due under this chapter for 
a taxable year
an energy system that is 
completed and placed in service before January 1, 2028
.
(3)
(a)
Subject to the other provisions of this Subsection (3), a claimant, estate, or trust 
may claim a refundable tax credit under this Subsection (3) with respect to a 
commercial energy system if:
(i)
the commercial energy system does not use:
(A)
wind, geothermal electricity, solar, or biomass equipment capable of 
producing a total of 660 or more kilowatts of electricity; or
(B)
solar equipment capable of producing 2,000 or more kilowatts of electricity;
(ii)
the claimant, estate, or trust purchases or participates in the financing of the 
commercial energy system;
(iii)
(A)
the commercial energy system supplies all or part of the energy required 
by commercial units owned or used by the claimant, estate, or trust; or
(B)
the claimant, estate, or trust sells all or part of the energy produced by the 
commercial energy system as a commercial enterprise;
(iv)
the claimant, estate, or trust has not claimed and will not claim a tax credit under 
Subsection (6) for hydrogen production using electricity for which the claimant, 
estate, or trust claims a tax credit under this Subsection (3); and
(v)
the claimant, estate, or trust obtains a written certification from the office in 
accordance with Subsection (7).
(b)
(i)
Subject to Subsections (3)(b)(ii) through (iv), the tax credit is equal to 10% of 
the reasonable costs of the commercial energy system.
(ii)
A tax credit under this Subsection (3) may include installation costs.
(iii)
A claimant, estate, or trust is eligible to claim a tax credit under this Subsection 
(3) for the taxable year in which the commercial energy system is completed and 
placed in service.
(iv)
The total amount of tax credit a claimant, estate, or trust may claim under this 
Subsection (3) may not exceed $50,000 per commercial unit.
(c)
(i)
Subject to Subsections (3)(c)(ii) and (iii), a claimant, estate, or trust that is a 
lessee of a commercial energy system installed on a commercial unit may claim a 
tax credit under this Subsection (3) if the claimant, estate, or trust confirms that 
the lessor irrevocably elects not to claim the tax credit.
(ii)
A claimant, estate, or trust described in Subsection (3)(c)(i) may claim as a tax 
credit under this Subsection (3) only the principal recovery portion of the lease 
payments.
(iii)
A claimant, estate, or trust described in Subsection (3)(c)(i) may claim a tax 
credit under this Subsection (3) for a period that does not exceed seven taxable 
years after the day on which the lease begins, as stated in the lease agreement.
(4)
(a)
Subject to the other provisions of this Subsection (4), a claimant, estate, or trust 
may claim a refundable tax credit under this Subsection (4) with respect to a 
commercial energy system if:
(i)
the commercial energy system uses wind, geothermal electricity, or biomass 
equipment capable of producing a total of 660 or more kilowatts of electricity;
(ii)
(A)
the commercial energy system supplies all or part of the energy required by 
commercial units owned or used by the claimant, estate, or trust; or
(B)
the claimant, estate, or trust sells all or part of the energy produced by the 
commercial energy system as a commercial enterprise;
(iii)
the claimant, estate, or trust has not claimed and will not claim a tax credit under 
Subsection (6) for hydrogen production using electricity for which the claimant, 
estate, or trust claims a tax credit under this Subsection (4); and
(iv)
the claimant, estate, or trust obtains a written certification from the office in 
accordance with Subsection (7).
(b)
(i)
Subject to Subsection (4)(b)(ii), a tax credit under this Subsection (4) is equal 
to the product of:
(A)
0.35 cents; and
(B)
the kilowatt hours of electricity produced and used or sold during the taxable 
year.
(ii)
A claimant, estate, or trust is eligible to claim a tax credit under this Subsection 
(4) for production occurring during a period of 48 months beginning with the 
month in which the commercial energy system is placed in commercial service.
(c)
A claimant, estate, or trust that is a lessee of a commercial energy system installed on 
a commercial unit may claim a tax credit under this Subsection (4) if the claimant, 
estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
(5)
(a)
Subject to the other provisions of this Subsection (5), a claimant, estate, or trust 
may claim a refundable tax credit as provided in this Subsection (5) if:
(i)
the claimant, estate, or trust owns a commercial energy system that uses solar 
equipment capable of producing a total of 660 or more kilowatts of electricity;
(ii)
(A)
the commercial energy system supplies all or part of the energy required by 
commercial units owned or used by the claimant, estate, or trust; or
(B)
the claimant, estate, or trust sells all or part of the energy produced by the 
commercial energy system as a commercial enterprise;
(iii)
the claimant, estate, or trust does not claim a tax credit under Subsection (3);
(iv)
the claimant, estate, or trust has not claimed and will not claim a tax credit under 
Subsection (6) for hydrogen production using electricity for which a taxpayer 
claims a tax credit under this Subsection (5); and
(v)
the claimant, estate, or trust obtains a written certification from the office in 
accordance with Subsection (7).
(b)
(i)
Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal 
to the product of:
(A)
0.35 cents; and
(B)
the kilowatt hours of electricity produced and used or sold during the taxable 
year.
(ii)
A claimant, estate, or trust is eligible to claim a tax credit under this Subsection 
(5) for production occurring during a period of 48 months beginning with the 
month in which the commercial energy system is placed in commercial service.
(c)
A claimant, estate, or trust that is a lessee of a commercial energy system installed on 
a commercial unit may claim a tax credit under this Subsection (5) if the claimant, 
estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
(6)
(a)
A claimant, estate, or trust may claim a refundable tax credit as provided in this 
Subsection (6) if:
(i)
the claimant, estate, or trust owns a hydrogen production system;
(ii)
the hydrogen production system is completed and placed in service on or after 
January 1, 2022;
(iii)
the claimant, estate, or trust sells as a commercial enterprise, or supplies for the 
claimant's, estate's, or trust's own use in commercial units, the hydrogen produced 
from the hydrogen production system;
(iv)
the claimant, estate, or trust has not claimed and will not claim a tax credit under 
Subsection (3), (4), or (5) for electricity used to meet the requirements of this 
Subsection (6); and
(v)
the claimant, estate, or trust obtains a written certification from the office in 
accordance with Subsection (7).
(b)
(i)
Subject to Subsections (6)(b)(ii) and (iii), a tax credit under this Subsection (6) 
is equal to the product of:
(A)
$0.12; and
(B)
the number of kilograms of hydrogen produced during the taxable year.
(ii)
A claimant, estate, or trust may not receive a tax credit under this Subsection (6) 
for more than 5,600 metric tons of hydrogen per taxable year.
(iii)
A claimant, estate, or trust is eligible to claim a tax credit under this Subsection 
(6) for production occurring during a period of 48 months beginning with the 
month in which the hydrogen production system is placed in commercial service.
(7)
(a)
Before a claimant, estate, or trust may claim a tax credit under this section, the 
claimant, estate, or trust shall obtain a written certification from the office.
(b)
The office shall issue a claimant, estate, or trust a written certification if the office 
determines that:
(i)
the claimant, estate, or trust meets the requirements of this section to receive a tax 
credit; and
(ii)
the commercial energy system or the hydrogen production system with respect to 
which the claimant, estate, or trust seeks to claim a tax credit:
(A)
has been completely installed;
(B)
is a viable system for saving or producing energy from clean resources; and
(C)
is safe, reliable, efficient, and technically feasible to ensure that the 
commercial energy system or the hydrogen production system uses the state's 
clean and nonrenewable resources in an appropriate and economic manner.
(c)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
office may make rules:
(i)
for determining whether a commercial energy system or a hydrogen production 
system meets the requirements of Subsection (7)(b)(ii); and
(ii)
for purposes of a tax credit under Subsection (3), establishing the reasonable costs 
of a commercial energy system, as an amount per unit of energy production.
(d)
A claimant, estate, or trust that obtains a written certification from the office shall 
retain the certification for the same time period a person is required to keep books 
and records under Section 
59-1-1406
.
(e)
The office shall submit to the commission an electronic list that includes:
(i)
the name and identifying information of each claimant, estate, or trust to which the 
office issues a written certification; and
(ii)
for each claimant, estate, or trust:
(A)
the amount of the tax credit listed on the written certification; and
(B)
the date the commercial energy system or the hydrogen production system 
was installed.
(8)
In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the 
commission may make rules to address the certification of a tax credit under this section.
(9)
A tax credit under this section is in addition to any tax credits provided under the laws 
or rules and regulations of the United States.
(10)
A purchaser of one or more solar units that claims a tax credit under Section 
59-10-1024
 for the purchase of the one or more solar units may not claim a tax credit 
under this section for that purchase.
(11)
A claimant, estate, or trust may not claim or carry forward a tax credit described in this 
section in a taxable year during which the claimant, estate, or trust claims or carries 
forward a tax credit under Section 
59-10-1029
.
Section 4, 
Repealer.
Nonrefundable alternative energy development tax credit.
Nonrefundable tax credit for qualifying solar projects.
Nonrefundable alternative energy development tax credit.
Section 5. 
Effective Date.
This bill takes effect on 
May 7, 2025
.
Section 6. 
Retrospective operation.
This bill has retrospective operation for a taxable year beginning on or after January 1, 
2025.
3-6-25 12:50 PM