Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 192 (2025GS)

Sponsor

Sen. Owens, Derrin R.

Final action

Governor Signed 3/25/2025

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• defines terms;
• requires commercial wind and solar energy systems of 660 or more kilowatts to include energy storage systems to qualify for tax credits; and
• makes technical changes.

Every vote on this bill

Bill text

6
59-7-614
59-10-1106
0
Commercial Wind and Solar Incentives Amendments
2025 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Derrin R. Owens
House Sponsor: Carl R. Albrecht
LONG TITLE
General Description:
This bill modifies tax credit requirements for certain commercial wind and solar energy 
systems.
Highlighted Provisions:
This bill:
defines terms;
requires commercial wind and solar energy systems of 660 or more kilowatts to include 
energy storage systems to qualify for tax credits; and
makes technical changes.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides a special effective date.
Utah Code Sections Affected:
AMENDS:
59-7-614
, as last amended by Laws of Utah 2024, Chapter 53
59-10-1106
, as last amended by Laws of Utah 2024, Chapter 53
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)
"Adequate energy storage" means an energy storage system that:
(i)
is capable of storing electrical energy produced by a commercial energy system;
(ii)
can provide at least six hours of the commercial energy system's expected peak 
daily generation; and
(iii)
enables the commercial energy system to meet the requirements of being 
dispatchable and reliable.
(b)
(c)
"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)
(d)
"Clean energy source" means the same as that term is defined in Section 
54-17-601
.
(d)
(e)
"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)
(f)
"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)
(g)
(i)
"Commercial unit" means a building or structure that an entity uses to 
transact business.
(ii)
Notwithstanding Subsection 
(1)(f)(i)
(1)(g)(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)
(h)
"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.
(i)
"Dispatchable" means the same as that term is defined in Section 
79-6-102
.
(h)
(j)
"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)
(k)
"Geothermal energy" means energy generated by heat that is contained in the 
earth.
(j)
(l)
"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)
(m)
"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)
(n)
"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.
(o)
"Interconnection queue" means the list of requests from power generation projects 
maintained by a transmission provider that are waiting to connect to the electrical 
grid.
(m)
(p)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(n)
(q)
(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.
(r)
"Peak daily generation" means the total electricity generation during the highest 
generation month of a calendar year, divided by the number of days in that month.
(o)
(s)
"Photovoltaic system" means an active solar system that generates electricity 
from sunlight.
(p)
(t)
(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.
(u)
"Reliable" means the same as that term is defined in Section 
79-6-102
.
(q)
(v)
"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)
(w)
(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)
(x)
"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.
(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)
for a commercial energy system using wind, the system includes adequate energy 
storage;
(iii)
(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 (5); and
(iv)
(v)
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)
For purposes of calculating the tax credit under this Subsection (5), electricity that is 
stored and later sold may only be counted at the time the electricity is sold from 
storage.
(c)
(d)
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.
(e)
Notwithstanding Subsection (5)(a)(iii), a commercial energy system is exempt from 
the energy storage requirement if the system had a position in an interconnection 
queue or a signed agreement with a transmission provider before January 1, 2025.
(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
:
(A)
uses solar equipment capable of producing a total of 660 or more kilowatts of 
electricity;
 and
(B)
includes adequate energy storage;
(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)
For purposes of calculating the tax credit under this Subsection (6), electricity that is 
stored and later sold may only be counted at the time the electricity is sold from 
storage.
(c)
(d)
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.
(e)
Notwithstanding Subsection (6)(a)(i)(B), a commercial energy system is exempt 
from the energy storage requirement if the system had a position in an 
interconnection queue or a signed agreement with a transmission provider before 
January 1, 2025.
(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 
59-10-1106
 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)
"Adequate energy storage" means the same as that term is defined in Section 
59-7-614
.
(b)
(c)
"Biomass system" means the same as that term is defined in Section 
59-10-1014
.
(c)
(d)
"Commercial energy system" means the same as that term is defined in Section 
59-7-614
.
(d)
(e)
"Commercial enterprise" means the same as that term is defined in Section 
59-7-614
.
(e)
(f)
"Commercial unit" means the same as that term is defined in Section 
59-7-614
.
(f)
(g)
"Direct use geothermal system" means the same as that term is defined in 
Section 
59-10-1014
.
(h)
"Dispatchable" means the same as that term is defined in Section 
79-6-102
.
(g)
(i)
"Geothermal electricity" means the same as that term is defined in Section 
59-10-1014
.
(h)
(j)
"Geothermal energy" means the same as that term is defined in Section 
59-10-1014
.
(i)
(k)
"Geothermal heat pump system" means the same as that term is defined in 
Section 
59-10-1014
.
(j)
(l)
"Hydroenergy system" means the same as that term is defined in Section 
59-10-1014
.
(k)
(m)
"Hydrogen production system" means the same as that term is defined in 
Section 
59-7-614
.
(n)
"Interconnection queue" means the same as that term is defined in Section 
59-7-614
.
(l)
(o)
"Office" means the Office of Energy Development created in Section 
79-6-401
.
(m)
(p)
"Passive solar system" means the same as that term is defined in Section 
59-10-1014
.
(q)
"Peak daily generation" means the same as that term is defined in Section 
59-7-614
.
(n)
(r)
"Principal recovery portion" means the same as that term is defined in Section 
59-10-1014
.
(s)
"Reliable" means the same as that term is defined in Section 
79-6-102
.
(o)
(t)
"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.
(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)
for a commercial energy system using wind, the system includes adequate energy 
storage;
(iii)
(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 (4); and
(iv)
(v)
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)
For purposes of calculating the tax credit under this Subsection (4), electricity that is 
stored and later sold may only be counted at the time the electricity is sold from 
storage.
(c)
(d)
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.
(e)
Notwithstanding Subsection (4)(a)(iii), a commercial energy system is exempt from 
the energy storage requirement if the system had a position in an interconnection 
queue or a signed agreement with a transmission provider before January 1, 2025.
(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
:
(A)
uses solar equipment capable of producing a total of 660 or more kilowatts of 
electricity;
 and
(B)
includes adequate energy storage;
(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)
For purposes of calculating the tax credit under this Subsection (5), electricity that is 
stored and later sold may only be counted at the time the electricity is sold from 
storage.
(d)
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.
(e)
Notwithstanding Subsection (5)(a)(i)(B), a commercial energy system is exempt 
from the energy storage requirement if the system had a position in an 
interconnection queue or a signed agreement with a transmission provider before 
January 1, 2025.
(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 3. 
Effective Date.
This bill takes effect for a taxable year beginning on or after January 1, 2026.
3-12-25 2:46 PM