Utah Administrative Code
Topic - Governor
Title R362 - Office of Energy Development
Rule R362-2 - Renewable Energy Systems Tax Credits
Section R362-2-5 - Investment Tax Credit, Eligible Costs for Commercial and Residential Systems, General

(1) Eligible costs for equipment are limited to system components that are necessary for the production of renewable energy and to deliver that energy for end-use.

(2) Eligible costs for equipment are limited to new components only. Any component of the renewable energy system that has previously been used for any purpose is ineligible.

(3) Costs for equipment and installation of components on existing renewable energy systems are eligible only if t the additional equipment increases the energy production capacity of the existing system. Costs for repair or replacement of any component of an existing system are ineligible for a tax credit.

(4) Each major energy-producing, energy conversion, and energy storage components of a renewable energy system shall be commercially available and built or manufactured for the intended application.

(5) Costs for the installation of a renewable energy system are eligible. The estimated value of a taxpayer's own labor is not to be considered when calculating eligible costs.

(6) Equipment and installation costs for backup energy production devices and any other energy production equipment that does not utilize a renewable energy source are not eligible costs.

(7) Any portion of the cost of an eligible renewable energy system that is offset by a cash rebate from a manufacturer, vendor, installer, utility, or any other rebate shall be not be considered an eligible cost for calculating residential or commercial tax credits. However, any federal tax credit received for an eligible system will not be deducted from the eligible cost when calculating the amount of Utah tax credits.

(8) Some renewable energy technologies have additional requirements for eligible costs that may be found in technology-specific sections of this rule below.