Utah Administrative Code
Topic - Governor
Title R362 - Office of Energy Development
Rule R362-2 - Renewable Energy Systems Tax Credits
Section R362-2-12 - Investment Tax Credit, Eligible Costs for Commercial and Residential Systems, Direct Use Geothermal

(1) Eligible costs for direct use geothermal systems must conform with Section R362-2-5 and meet the requirements contained in this Section.

(2) Eligible costs for a direct use geothermal system are limited to components that are not associated with a conventional hot water heating system.

(3) Eligible equipment costs include:

(4) Equipment and components beyond the wellhead or a heat exchanger, are not eligible. Water treatment equipment that would permit the direct use of well water within a heating system is eligible.

(5) Design costs for a direct use geothermal system are eligible only if the components of the system would not normally be associated with a conventional hot water heating system. Tax credit applications must separate design costs for the geothermal and conventional components of the system.

(6) Costs for studies to characterize a geothermal resource are eligible if a final system using the geothermal resource is built and placed into operation.

(7) Costs incurred for the drilling of wells are eligible if the wells are actually used, whether for withdrawal or reinjection of water, within the final direct use geothermal system. The costs of exploratory wells that are not used within the final system are not eligible.