Utah 2025 Regular Session

Utah House Bill HB0264 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy H.B. 264
	1	+	02-20 16:03 1st Sub. (Buff) H.B. 264
	2	+	Kay J. Christofferson proposes the following substitute bill:
2	3		1
3	4		Tax Incentives Amendments
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Kay J. Christofferson
7	8		Senate Sponsor: Brady Brammer
8	9		2
9	10
10	11		3
11	12		LONG TITLE
12	13		4
13	14		General Description:
14	15		5
15	16		This bill modifies and repeals provisions related to income tax incentives.
16	17		6
17	18		Highlighted Provisions:
18	19		7
19	20		This bill:
20	21		8
21	22		▸ limits the eligibility for claiming the corporate or individual income tax credit for clean
22	23		9
23		-	energy systems to systems that are placed in service before January 1, 2028; and
	24	+	energy systems to systems that are placed in service before January 1, Ŝ→ [2035]
	25	+	9a
	26	+	2028 ←Ŝ ; and
24	27		10
25	28		▸ repeals the individual income tax credit for qualifying solar projects and the corporate and
26	29		11
27	30		individual income tax credits for alternative energy development.
28	31		12
29	32		Money Appropriated in this Bill:
30	33		13
31	34		None
32	35		14
33	36		Other Special Clauses:
34	37		15
35	38		This bill provides retrospective operation.
36	39		16
37	40		Utah Code Sections Affected:
38	41		17
39	42		AMENDS:
40	43		18
41	44		59-7-614, as last amended by Laws of Utah 2024, Chapter 53
42	45		19
43	46		59-10-1014, as last amended by Laws of Utah 2024, Chapter 53
44	47		20
45	48		59-10-1106, as last amended by Laws of Utah 2024, Chapter 53
46	49		21
47	50		REPEALS:
48	51		22
49	52		59-7-614.7, as last amended by Laws of Utah 2023, Chapter 482
50	53		23
51	54		59-10-1024, as last amended by Laws of Utah 2021, Chapter 280
52	55		24
53	56		59-10-1029, as last amended by Laws of Utah 2023, Chapter 482
54	57		25
55	58
56	59		26
57	60		Be it enacted by the Legislature of the state of Utah:
58	61		27
59	62		Section 1. Section 59-7-614 is amended to read:
	63	+	1st Sub. H.B. 264 1st Sub. (Buff) H.B. 264 02-20 16:03
60	64		28
61		-	59-7-614 . Clean energy systems tax credits -- Definitions -- Certification -- ~~H.B. 264 Enrolled Copy~~
	65	+	59-7-614 . Clean energy systems tax credits -- Definitions -- Certification --
62	66		29
63	67		Rulemaking authority.
64	68		30
65	69		(1) As used in this section:
66	70		31
67	71		(a)(i) "Active solar system" means a system of equipment that is capable of:
68	72		32
69	73		(A) collecting and converting incident solar radiation into thermal, mechanical, or
70	74		33
71	75		electrical energy; and
72	76		34
73	77		(B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a
74	78		35
75	79		separate apparatus to storage or to the point of use.
76	80		36
77	81		(ii) "Active solar system" includes water heating, space heating or cooling, and
78	82		37
79	83		electrical or mechanical energy generation.
80	84		38
81	85		(b) "Biomass system" means a system of apparatus and equipment for use in:
82	86		39
83	87		(i) converting material into biomass energy, as defined in Section 59-12-102; and
84	88		40
85	89		(ii) transporting the biomass energy by separate apparatus to the point of use or
86	90		41
87	91		storage.
88	92		42
89	93		(c) "Clean energy source" means the same as that term is defined in Section 54-17-601.
90	94		43
91	95		(d) "Commercial energy system" means a system that is:
92	96		44
93	97		(i)(A) an active solar system;
94	98		45
95	99		(B) a biomass system;
96	100		46
97	101		(C) a direct use geothermal system;
98	102		47
99	103		(D) a geothermal electricity system;
100	104		48
101	105		(E) a geothermal heat pump system;
102	106		49
103	107		(F) a hydroenergy system;
104	108		50
105	109		(G) a passive solar system; or
106	110		51
107	111		(H) a wind system;
108	112		52
109	113		(ii) located in the state; and
110	114		53
111	115		(iii) used:
112	116		54
113	117		(A) to supply energy to a commercial unit; or
114	118		55
115	119		(B) as a commercial enterprise.
116	120		56
117	121		(e) "Commercial enterprise" means an entity, the purpose of which is to produce:
118	122		57
119	123		(i) electrical, mechanical, or thermal energy for sale from a commercial energy
120	124		58
121	125		system; or
122	126		59
123	127		(ii) hydrogen for sale from a hydrogen production system.
124	128		60
125	129		(f)(i) "Commercial unit" means a building or structure that an entity uses to transact
126	130		61
127	131		business.
	132	+	- 2 - 02-20 16:03 1st Sub. (Buff) H.B. 264
128	133		62
129	134		(ii) Notwithstanding Subsection (1)(f)(i):
130		-	- 2 - Enrolled Copy H.B. 264
131	135		63
132	136		(A) with respect to an active solar system used for agricultural water pumping or a
133	137		64
134	138		wind system, each individual energy generating device is considered to be a
135	139		65
136	140		commercial unit; or
137	141		66
138	142		(B) if an energy system is the building or structure that an entity uses to transact
139	143		67
140	144		business, a commercial unit is the complete energy system itself.
141	145		68
142	146		(g) "Direct use geothermal system" means a system of apparatus and equipment that
143	147		69
144	148		enables the direct use of geothermal energy to meet energy needs, including heating a
145	149		70
146	150		building, an industrial process, and aquaculture.
147	151		71
148	152		(h) "Geothermal electricity" means energy that is:
149	153		72
150	154		(i) contained in heat that continuously flows outward from the earth; and
151	155		73
152	156		(ii) used as a sole source of energy to produce electricity.
153	157		74
154	158		(i) "Geothermal energy" means energy generated by heat that is contained in the earth.
155	159		75
156	160		(j) "Geothermal heat pump system" means a system of apparatus and equipment that:
157	161		76
158	162		(i) enables the use of thermal properties contained in the earth at temperatures well
159	163		77
160	164		below 100 degrees Fahrenheit; and
161	165		78
162	166		(ii) helps meet heating and cooling needs of a structure.
163	167		79
164	168		(k) "Hydroenergy system" means a system of apparatus and equipment that is capable of:
165	169		80
166	170		(i) intercepting and converting kinetic water energy into electrical or mechanical
167	171		81
168	172		energy; and
169	173		82
170	174		(ii) transferring this form of energy by separate apparatus to the point of use or
171	175		83
172	176		storage.
173	177		84
174	178		(l) "Hydrogen production system" means a system of apparatus and equipment, located
175	179		85
176	180		in this state, that uses:
177	181		86
178	182		(i) electricity from a clean energy source to create hydrogen gas from water,
179	183		87
180	184		regardless of whether the clean energy source is at a separate facility or the same
181	185		88
182	186		facility as the system of apparatus and equipment; or
183	187		89
184	188		(ii) uses renewable natural gas to produce hydrogen gas.
185	189		90
186	190		(m) "Office" means the Office of Energy Development created in Section 79-6-401.
187	191		91
188	192		(n)(i) "Passive solar system" means a direct thermal system that utilizes the structure
189	193		92
190	194		of a building and the structure's operable components to provide for collection,
191	195		93
192	196		storage, and distribution of heating or cooling during the appropriate times of the
193	197		94
194	198		year by utilizing the climate resources available at the site.
195	199		95
196	200		(ii) "Passive solar system" includes those portions and components of a building that
	201	+	- 3 - 1st Sub. (Buff) H.B. 264 02-20 16:03
197	202		96
198	203		are expressly designed and required for the collection, storage, and distribution of
199		-	- 3 - H.B. 264 Enrolled Copy
200	204		97
201	205		solar energy.
202	206		98
203	207		(o) "Photovoltaic system" means an active solar system that generates electricity from
204	208		99
205	209		sunlight.
206	210		100
207	211		(p)(i) "Principal recovery portion" means the portion of a lease payment that
208	212		101
209	213		constitutes the cost a person incurs in acquiring a commercial energy system.
210	214		102
211	215		(ii) "Principal recovery portion" does not include:
212	216		103
213	217		(A) an interest charge; or
214	218		104
215	219		(B) a maintenance expense.
216	220		105
217	221		(q) "Residential energy system" means the following used to supply energy to or for a
218	222		106
219	223		residential unit:
220	224		107
221	225		(i) an active solar system;
222	226		108
223	227		(ii) a biomass system;
224	228		109
225	229		(iii) a direct use geothermal system;
226	230		110
227	231		(iv) a geothermal heat pump system;
228	232		111
229	233		(v) a hydroenergy system;
230	234		112
231	235		(vi) a passive solar system; or
232	236		113
233	237		(vii) a wind system.
234	238		114
235	239		(r)(i) "Residential unit" means a house, condominium, apartment, or similar dwelling
236	240		115
237	241		unit that:
238	242		116
239	243		(A) is located in the state; and
240	244		117
241	245		(B) serves as a dwelling for a person, group of persons, or a family.
242	246		118
243	247		(ii) "Residential unit" does not include property subject to a fee under:
244	248		119
245	249		(A) Section 59-2-405;
246	250		120
247	251		(B) Section 59-2-405.1;
248	252		121
249	253		(C) Section 59-2-405.2;
250	254		122
251	255		(D) Section 59-2-405.3; or
252	256		123
253	257		(E) Section 72-10-110.5.
254	258		124
255	259		(s) "Wind system" means a system of apparatus and equipment that is capable of:
256	260		125
257	261		(i) intercepting and converting wind energy into mechanical or electrical energy; and
258	262		126
259	263		(ii) transferring these forms of energy by a separate apparatus to the point of use,
260	264		127
261	265		sale, or storage.
262	266		128
263	267		(2) A taxpayer may claim an energy system tax credit as provided in this section against a
264	268		129
265	269		tax due under this chapter for [a taxable year] an energy system that is completed and
	270	+	- 4 - 02-20 16:03 1st Sub. (Buff) H.B. 264
266	271		130
267		-	placed in service before January 1, 2028.
268		-	- 4 - Enrolled Copy H.B. 264
	272	+	placed in service before January 1, Ŝ→ [2035] 2028 ←Ŝ .
269	273		131
270	274		(3)(a) Subject to the other provisions of this Subsection (3), a taxpayer may claim a
271	275		132
272	276		nonrefundable tax credit under this Subsection (3) with respect to a residential unit
273	277		133
274	278		the taxpayer owns or uses if:
275	279		134
276	280		(i) the taxpayer:
277	281		135
278	282		(A) purchases and completes a residential energy system to supply all or part of
279	283		136
280	284		the energy required for the residential unit; or
281	285		137
282	286		(B) participates in the financing of a residential energy system to supply all or part
283	287		138
284	288		of the energy required for the residential unit; and
285	289		139
286	290		(ii) the taxpayer obtains a written certification from the office in accordance with
287	291		140
288	292		Subsection (8).
289	293		141
290	294		(b)(i) Subject to Subsections (3)(b)(ii) through (iv) and, as applicable, Subsection
291	295		142
292	296		(3)(c) or (d), the tax credit is equal to 25% of the reasonable costs of each
293	297		143
294	298		residential energy system installed with respect to each residential unit the
295	299		144
296	300		taxpayer owns or uses.
297	301		145
298	302		(ii) A tax credit under this Subsection (3) may include installation costs.
299	303		146
300	304		(iii) A taxpayer may claim a tax credit under this Subsection (3) for the taxable year
301	305		147
302	306		in which the residential energy system is completed and placed in service.
303	307		148
304	308		(iv) If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax
305	309		149
306	310		liability under this chapter for a taxable year, the taxpayer may carry forward the
307	311		150
308	312		amount of the tax credit exceeding the liability for a period that does not exceed
309	313		151
310	314		the next four taxable years.
311	315		152
312	316		(c) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
313	317		153
314	318		residential energy system, other than a photovoltaic system, may not exceed $2,000
315	319		154
316	320		per residential unit.
317	321		155
318	322		(d) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
319	323		156
320	324		photovoltaic system may not exceed:
321	325		157
322	326		(i) for a system installed on or after January 1, 2018, but on or before December 31,
323	327		158
324	328		2020, $1,600;
325	329		159
326	330		(ii) for a system installed on or after January 1, 2021, but on or before December 31,
327	331		160
328	332		2021, $1,200;
329	333		161
330	334		(iii) for a system installed on or after January 1, 2022, but on or before December 31,
331	335		162
332	336		2022, $800;
333	337		163
334	338		(iv) for a system installed on or after January 1, 2023, but on or before December 31,
	339	+	- 5 - 1st Sub. (Buff) H.B. 264 02-20 16:03
335	340		164
336	341		2023, $400; and
337		-	- 5 - H.B. 264 Enrolled Copy
338	342		165
339	343		(v) for a system installed on or after January 1, 2024, $0.
340	344		166
341	345		(e) If a taxpayer sells a residential unit to another person before the taxpayer claims the
342	346		167
343	347		tax credit under this Subsection (3):
344	348		168
345	349		(i) the taxpayer may assign the tax credit to the other person; and
346	350		169
347	351		(ii)(A) if the other person files a return under this chapter, the other person may
348	352		170
349	353		claim the tax credit under this section as if the other person had met the
350	354		171
351	355		requirements of this section to claim the tax credit; or
352	356		172
353	357		(B) if the other person files a return under Chapter 10, Individual Income Tax Act,
354	358		173
355	359		the other person may claim the tax credit under Section 59-10-1014 as if the
356	360		174
357	361		other person had met the requirements of Section 59-10-1014 to claim the tax
358	362		175
359	363		credit.
360	364		176
361	365		(4)(a) Subject to the other provisions of this Subsection (4), a taxpayer may claim a
362	366		177
363	367		refundable tax credit under this Subsection (4) with respect to a commercial energy
364	368		178
365	369		system if:
366	370		179
367	371		(i) the commercial energy system does not use:
368	372		180
369	373		(A) wind, geothermal electricity, solar, or biomass equipment capable of
370	374		181
371	375		producing a total of 660 or more kilowatts of electricity; or
372	376		182
373	377		(B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
374	378		183
375	379		(ii) the taxpayer purchases or participates in the financing of the commercial energy
376	380		184
377	381		system;
378	382		185
379	383		(iii)(A) the commercial energy system supplies all or part of the energy required
380	384		186
381	385		by commercial units owned or used by the taxpayer; or
382	386		187
383	387		(B) the taxpayer sells all or part of the energy produced by the commercial energy
384	388		188
385	389		system as a commercial enterprise;
386	390		189
387	391		(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
388	392		190
389	393		for hydrogen production using electricity for which the taxpayer claims a tax
390	394		191
391	395		credit under this Subsection (4); and
392	396		192
393	397		(v) the taxpayer obtains a written certification from the office in accordance with
394	398		193
395	399		Subsection (8).
396	400		194
397	401		(b)(i) Subject to Subsections (4)(b)(ii) through (iv), the tax credit is equal to 10% of
398	402		195
399	403		the reasonable costs of the commercial energy system.
400	404		196
401	405		(ii) A tax credit under this Subsection (4) may include installation costs.
402	406		197
403	407		(iii) A taxpayer is eligible to claim a tax credit under this Subsection (4) for the
	408	+	- 6 - 02-20 16:03 1st Sub. (Buff) H.B. 264
404	409		198
405	410		taxable year in which the commercial energy system is completed and placed in
406		-	- 6 - Enrolled Copy H.B. 264
407	411		199
408	412		service.
409	413		200
410	414		(iv) The total amount of tax credit a taxpayer may claim under this Subsection (4)
411	415		201
412	416		may not exceed $50,000 per commercial unit.
413	417		202
414	418		(c)(i) Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a
415	419		203
416	420		commercial energy system installed on a commercial unit may claim a tax credit
417	421		204
418	422		under this Subsection (4) if the taxpayer confirms that the lessor irrevocably elects
419	423		205
420	424		not to claim the tax credit.
421	425		206
422	426		(ii) A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this
423	427		207
424	428		Subsection (4) only the principal recovery portion of the lease payments.
425	429		208
426	430		(iii) A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this
427	431		209
428	432		Subsection (4) for a period that does not exceed seven taxable years after the day
429	433		210
430	434		on which the lease begins, as stated in the lease agreement.
431	435		211
432	436		(5)(a) Subject to the other provisions of this Subsection (5), a taxpayer may claim a
433	437		212
434	438		refundable tax credit under this Subsection (5) with respect to a commercial energy
435	439		213
436	440		system if:
437	441		214
438	442		(i) the commercial energy system uses wind, geothermal electricity, or biomass
439	443		215
440	444		equipment capable of producing a total of 660 or more kilowatts of electricity;
441	445		216
442	446		(ii)(A) the commercial energy system supplies all or part of the energy required by
443	447		217
444	448		commercial units owned or used by the taxpayer; or
445	449		218
446	450		(B) the taxpayer sells all or part of the energy produced by the commercial energy
447	451		219
448	452		system as a commercial enterprise;
449	453		220
450	454		(iii) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
451	455		221
452	456		for hydrogen production using electricity for which the taxpayer claims a tax
453	457		222
454	458		credit under this Subsection (5); and
455	459		223
456	460		(iv) the taxpayer obtains a written certification from the office in accordance with
457	461		224
458	462		Subsection (8).
459	463		225
460	464		(b)(i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal
461	465		226
462	466		to the product of:
463	467		227
464	468		(A) 0.35 cents; and
465	469		228
466	470		(B) the kilowatt hours of electricity produced and used or sold during the taxable
467	471		229
468	472		year.
469	473		230
470	474		(ii) A taxpayer is eligible to claim a tax credit under this Subsection (5) for
471	475		231
472	476		production occurring during a period of 48 months beginning with the month in
	477	+	- 7 - 1st Sub. (Buff) H.B. 264 02-20 16:03
473	478		232
474	479		which the commercial energy system is placed in commercial service.
475		-	- 7 - H.B. 264 Enrolled Copy
476	480		233
477	481		(c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
478	482		234
479	483		unit may claim a tax credit under this Subsection (5) if the taxpayer confirms that the
480	484		235
481	485		lessor irrevocably elects not to claim the tax credit.
482	486		236
483	487		(6)(a) Subject to the other provisions of this Subsection (6), a taxpayer may claim a
484	488		237
485	489		refundable tax credit as provided in this Subsection (6) if:
486	490		238
487	491		(i) the taxpayer owns a commercial energy system that uses solar equipment capable
488	492		239
489	493		of producing a total of 660 or more kilowatts of electricity;
490	494		240
491	495		(ii)(A) the commercial energy system supplies all or part of the energy required by
492	496		241
493	497		commercial units owned or used by the taxpayer; or
494	498		242
495	499		(B) the taxpayer sells all or part of the energy produced by the commercial energy
496	500		243
497	501		system as a commercial enterprise;
498	502		244
499	503		(iii) the taxpayer does not claim a tax credit under Subsection (4) and has not claimed
500	504		245
501	505		and will not claim a tax credit under Subsection (7) for hydrogen production using
502	506		246
503	507		electricity for which a taxpayer claims a tax credit under this Subsection (6); and
504	508		247
505	509		(iv) the taxpayer obtains a written certification from the office in accordance with
506	510		248
507	511		Subsection (8).
508	512		249
509	513		(b)(i) Subject to Subsection (6)(b)(ii), a tax credit under this Subsection (6) is equal
510	514		250
511	515		to the product of:
512	516		251
513	517		(A) 0.35 cents; and
514	518		252
515	519		(B) the kilowatt hours of electricity produced and used or sold during the taxable
516	520		253
517	521		year.
518	522		254
519	523		(ii) A taxpayer is eligible to claim a tax credit under this Subsection (6) for
520	524		255
521	525		production occurring during a period of 48 months beginning with the month in
522	526		256
523	527		which the commercial energy system is placed in commercial service.
524	528		257
525	529		(c) A taxpayer that is a lessee of a commercial energy system installed on a commercial
526	530		258
527	531		unit may claim a tax credit under this Subsection (6) if the taxpayer confirms that the
528	532		259
529	533		lessor irrevocably elects not to claim the tax credit.
530	534		260
531	535		(7)(a) A taxpayer may claim a refundable tax credit as provided in this Subsection (7) if:
532	536		261
533	537		(i) the taxpayer owns a hydrogen production system;
534	538		262
535	539		(ii) the hydrogen production system is completed and placed in service on or after
536	540		263
537	541		January 1, 2022;
538	542		264
539	543		(iii) the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own
540	544		265
541	545		use in commercial units, the hydrogen produced from the hydrogen production
	546	+	- 8 - 02-20 16:03 1st Sub. (Buff) H.B. 264
542	547		266
543	548		system;
544		-	- 8 - Enrolled Copy H.B. 264
545	549		267
546	550		(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (4),
547	551		268
548	552		(5), or (6) or Section 59-7-626 for electricity or hydrogen used to meet the
549	553		269
550	554		requirements of this Subsection (7); and
551	555		270
552	556		(v) the taxpayer obtains a written certification from the office in accordance with
553	557		271
554	558		Subsection (8).
555	559		272
556	560		(b)(i) Subject to Subsections (7)(b)(ii) and (iii), a tax credit under this Subsection (7)
557	561		273
558	562		is equal to the product of:
559	563		274
560	564		(A) $0.12; and
561	565		275
562	566		(B) the number of kilograms of hydrogen produced during the taxable year.
563	567		276
564	568		(ii) A taxpayer may not receive a tax credit under this Subsection (7) for more than
565	569		277
566	570		5,600 metric tons of hydrogen per taxable year.
567	571		278
568	572		(iii) A taxpayer is eligible to claim a tax credit under this Subsection (7) for
569	573		279
570	574		production occurring during a period of 48 months beginning with the month in
571	575		280
572	576		which the hydrogen production system is placed in commercial service.
573	577		281
574	578		(8)(a) Before a taxpayer may claim a tax credit under this section, the taxpayer shall
575	579		282
576	580		obtain a written certification from the office.
577	581		283
578	582		(b) The office shall issue a taxpayer a written certification if the office determines that:
579	583		284
580	584		(i) the taxpayer meets the requirements of this section to receive a tax credit; and
581	585		285
582	586		(ii) the residential energy system, the commercial energy system, or the hydrogen
583	587		286
584	588		production system with respect to which the taxpayer seeks to claim a tax credit:
585	589		287
586	590		(A) has been completely installed;
587	591		288
588	592		(B) is a viable system for saving or producing energy from clean resources; and
589	593		289
590	594		(C) is safe, reliable, efficient, and technically feasible to ensure that the residential
591	595		290
592	596		energy system, the commercial energy system, or the hydrogen production
593	597		291
594	598		system uses the state's clean and nonrenewable energy resources in an
595	599		292
596	600		appropriate and economic manner.
597	601		293
598	602		(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
599	603		294
600	604		office may make rules:
601	605		295
602	606		(i) for determining whether a residential energy system, a commercial energy system,
603	607		296
604	608		or a hydrogen production system meets the requirements of Subsection (8)(b)(ii);
605	609		297
606	610		and
607	611		298
608	612		(ii) for purposes of a tax credit under Subsection (3) or (4), establishing the
609	613		299
610	614		reasonable costs of a residential energy system or a commercial energy system, as
	615	+	- 9 - 1st Sub. (Buff) H.B. 264 02-20 16:03
611	616		300
612	617		an amount per unit of energy production.
613		-	- 9 - H.B. 264 Enrolled Copy
614	618		301
615	619		(d) A taxpayer that obtains a written certification from the office shall retain the
616	620		302
617	621		certification for the same time period a person is required to keep books and records
618	622		303
619	623		under Section 59-1-1406.
620	624		304
621	625		(e) The office shall submit to the commission an electronic list that includes:
622	626		305
623	627		(i) the name and identifying information of each taxpayer to which the office issues a
624	628		306
625	629		written certification; and
626	630		307
627	631		(ii) for each taxpayer:
628	632		308
629	633		(A) the amount of the tax credit listed on the written certification; and
630	634		309
631	635		(B) the date the clean energy system was installed.
632	636		310
633	637		(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
634	638		311
635	639		commission may make rules to address the certification of a tax credit under this section.
636	640		312
637	641		(10) A tax credit under this section is in addition to any tax credits provided under the laws
638	642		313
639	643		or rules and regulations of the United States.
640	644		314
641	645		(11) A taxpayer may not claim or carry forward a tax credit described in this section in a
642	646		315
643	647		taxable year during which the taxpayer claims or carries forward a tax credit under
644	648		316
645	649		Section 59-7-614.7.
646	650		317
647	651		Section 2. Section 59-10-1014 is amended to read:
648	652		318
649	653		59-10-1014 . Nonrefundable clean energy systems tax credits -- Definitions --
650	654		319
651	655		Certification -- Rulemaking authority.
652	656		320
653	657		(1) As used in this section:
654	658		321
655	659		(a)(i) "Active solar system" means a system of equipment that is capable of:
656	660		322
657	661		(A) collecting and converting incident solar radiation into thermal, mechanical, or
658	662		323
659	663		electrical energy; and
660	664		324
661	665		(B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a
662	666		325
663	667		separate apparatus to storage or to the point of use.
664	668		326
665	669		(ii) "Active solar system" includes water heating, space heating or cooling, and
666	670		327
667	671		electrical or mechanical energy generation.
668	672		328
669	673		(b) "Biomass system" means a system of apparatus and equipment for use in:
670	674		329
671	675		(i) converting material into biomass energy, as defined in Section 59-12-102; and
672	676		330
673	677		(ii) transporting the biomass energy by separate apparatus to the point of use or
674	678		331
675	679		storage.
676	680		332
677	681		(c) "Direct use geothermal system" means a system of apparatus and equipment that
678	682		333
679	683		enables the direct use of geothermal energy to meet energy needs, including heating a
	684	+	- 10 - 02-20 16:03 1st Sub. (Buff) H.B. 264
680	685		334
681	686		building, an industrial process, and aquaculture.
682		-	- 10 - Enrolled Copy H.B. 264
683	687		335
684	688		(d) "Geothermal electricity" means energy that is:
685	689		336
686	690		(i) contained in heat that continuously flows outward from the earth; and
687	691		337
688	692		(ii) used as a sole source of energy to produce electricity.
689	693		338
690	694		(e) "Geothermal energy" means energy generated by heat that is contained in the earth.
691	695		339
692	696		(f) "Geothermal heat pump system" means a system of apparatus and equipment that:
693	697		340
694	698		(i) enables the use of thermal properties contained in the earth at temperatures well
695	699		341
696	700		below 100 degrees Fahrenheit; and
697	701		342
698	702		(ii) helps meet heating and cooling needs of a structure.
699	703		343
700	704		(g) "Hydroenergy system" means a system of apparatus and equipment that is capable of:
701	705		344
702	706		(i) intercepting and converting kinetic water energy into electrical or mechanical
703	707		345
704	708		energy; and
705	709		346
706	710		(ii) transferring this form of energy by separate apparatus to the point of use or
707	711		347
708	712		storage.
709	713		348
710	714		(h) "Office" means the Office of Energy Development created in Section 79-6-401.
711	715		349
712	716		(i)(i) "Passive solar system" means a direct thermal system that utilizes the structure
713	717		350
714	718		of a building and its operable components to provide for collection, storage, and
715	719		351
716	720		distribution of heating or cooling during the appropriate times of the year by
717	721		352
718	722		utilizing the climate resources available at the site.
719	723		353
720	724		(ii) "Passive solar system" includes those portions and components of a building that
721	725		354
722	726		are expressly designed and required for the collection, storage, and distribution of
723	727		355
724	728		solar energy.
725	729		356
726	730		(j) "Photovoltaic system" means an active solar system that generates electricity from
727	731		357
728	732		sunlight.
729	733		358
730	734		(k)(i) "Principal recovery portion" means the portion of a lease payment that
731	735		359
732	736		constitutes the cost a person incurs in acquiring a residential energy system.
733	737		360
734	738		(ii) "Principal recovery portion" does not include:
735	739		361
736	740		(A) an interest charge; or
737	741		362
738	742		(B) a maintenance expense.
739	743		363
740	744		(l) "Residential energy system" means the following used to supply energy to or for a
741	745		364
742	746		residential unit:
743	747		365
744	748		(i) an active solar system;
745	749		366
746	750		(ii) a biomass system;
747	751		367
748	752		(iii) a direct use geothermal system;
	753	+	- 11 - 1st Sub. (Buff) H.B. 264 02-20 16:03
749	754		368
750	755		(iv) a geothermal heat pump system;
751		-	- 11 - H.B. 264 Enrolled Copy
752	756		369
753	757		(v) a hydroenergy system;
754	758		370
755	759		(vi) a passive solar system; or
756	760		371
757	761		(vii) a wind system.
758	762		372
759	763		(m)(i) "Residential unit" means a house, condominium, apartment, or similar
760	764		373
761	765		dwelling unit that:
762	766		374
763	767		(A) is located in the state; and
764	768		375
765	769		(B) serves as a dwelling for a person, group of persons, or a family.
766	770		376
767	771		(ii) "Residential unit" does not include property subject to a fee under:
768	772		377
769	773		(A) Section 59-2-405;
770	774		378
771	775		(B) Section 59-2-405.1;
772	776		379
773	777		(C) Section 59-2-405.2;
774	778		380
775	779		(D) Section 59-2-405.3; or
776	780		381
777	781		(E) Section 72-10-110.5.
778	782		382
779	783		(n) "Wind system" means a system of apparatus and equipment that is capable of:
780	784		383
781	785		(i) intercepting and converting wind energy into mechanical or electrical energy; and
782	786		384
783	787		(ii) transferring these forms of energy by a separate apparatus to the point of use or
784	788		385
785	789		storage.
786	790		386
787	791		(2) A claimant, estate, or trust may claim an energy system tax credit as provided in this
788	792		387
789	793		section against a tax due under this chapter for [a taxable year] an energy system that is
790	794		388
791		-	completed and placed in service before January 1, 2028.
	795	+	completed and placed in service before January 1, Ŝ→ [2035] 2028 ←Ŝ .
792	796		389
793	797		(3) For a taxable year beginning on or after January 1, 2007, a claimant, estate, or trust may
794	798		390
795	799		claim a nonrefundable tax credit under this section with respect to a residential unit the
796	800		391
797	801		claimant, estate, or trust owns or uses if:
798	802		392
799	803		(a) the claimant, estate, or trust:
800	804		393
801	805		(i) purchases and completes a residential energy system to supply all or part of the
802	806		394
803	807		energy required for the residential unit; or
804	808		395
805	809		(ii) participates in the financing of a residential energy system to supply all or part of
806	810		396
807	811		the energy required for the residential unit;
808	812		397
809	813		(b) the residential energy system is installed on or after January 1, 2007; and
810	814		398
811	815		(c) the claimant, estate, or trust obtains a written certification from the office in
812	816		399
813	817		accordance with Subsection (5).
814	818		400
815	819		(4)(a) For a residential energy system, other than a photovoltaic system, the tax credit
816	820		401
817	821		described in this section is equal to the lesser of:
	822	+	- 12 - 02-20 16:03 1st Sub. (Buff) H.B. 264
818	823		402
819	824		(i) 25% of the reasonable costs, including installation costs, of each residential
820		-	- 12 - Enrolled Copy H.B. 264
821	825		403
822	826		energy system installed with respect to each residential unit the claimant, estate, or
823	827		404
824	828		trust owns or uses; and
825	829		405
826	830		(ii) $2,000.
827	831		406
828	832		(b) Subject to Subsection (5)(d), for a residential energy system that is a photovoltaic
829	833		407
830	834		system, the tax credit described in this section is equal to the lesser of:
831	835		408
832	836		(i) 25% of the reasonable costs, including installation costs, of each system installed
833	837		409
834	838		with respect to each residential unit the claimant, estate, or trust owns or uses; or
835	839		410
836	840		(ii)(A) for a system installed on or after January 1, 2007, but on or before
837	841		411
838	842		December 31, 2017, $2,000;
839	843		412
840	844		(B) for a system installed on or after January 1, 2018, but on or before December
841	845		413
842	846		31, 2020, $1,600;
843	847		414
844	848		(C) for a system installed on or after January 1, 2021, but on or before December
845	849		415
846	850		31, 2021, $1,200;
847	851		416
848	852		(D) for a system installed on or after January 1, 2022, but on or before December
849	853		417
850	854		31, 2022, $800;
851	855		418
852	856		(E) for a system installed on or after January 1, 2023, but on or before December
853	857		419
854	858		31, 2023, $400; and
855	859		420
856	860		(F) for a system installed on or after January 1, 2024, $0.
857	861		421
858	862		(c)(i) The office shall determine the amount of the tax credit that a claimant, estate, or
859	863		422
860	864		trust may claim and list that amount on the written certification that the office
861	865		423
862	866		issues under Subsection (5).
863	867		424
864	868		(ii) The claimant, estate, or trust may claim the tax credit in the amount listed on the
865	869		425
866	870		written certification that the office issues under Subsection (5).
867	871		426
868	872		(d) A claimant, estate, or trust may claim a tax credit under Subsection (3) for the
869	873		427
870	874		taxable year in which the residential energy system is installed.
871	875		428
872	876		(e) If the amount of a tax credit listed on the written certification exceeds a claimant's,
873	877		429
874	878		estate's, or trust's tax liability under this chapter for a taxable year, the claimant,
875	879		430
876	880		estate, or trust may carry forward the amount of the tax credit exceeding the liability
877	881		431
878	882		for a period that does not exceed the next four taxable years.
879	883		432
880	884		(f) A claimant, estate, or trust may claim a tax credit with respect to additional
881	885		433
882	886		residential energy systems or parts of residential energy systems for a subsequent
883	887		434
884	888		taxable year if the total amount of tax credit the claimant, estate, or trust claims does
885	889		435
886	890		not exceed $2,000 per residential unit.
	891	+	- 13 - 1st Sub. (Buff) H.B. 264 02-20 16:03
887	892		436
888	893		(g)(i) Subject to Subsections (4)(g)(ii) and (iii), a claimant, estate, or trust that leases
889		-	- 13 - H.B. 264 Enrolled Copy
890	894		437
891	895		a residential energy system installed on a residential unit may claim a tax credit
892	896		438
893	897		under Subsection (3) if the claimant, estate, or trust confirms that the lessor
894	898		439
895	899		irrevocably elects not to claim the tax credit.
896	900		440
897	901		(ii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a
898	902		441
899	903		residential energy system may claim as a tax credit under Subsection (3) only the
900	904		442
901	905		principal recovery portion of the lease payments.
902	906		443
903	907		(iii) A claimant, estate, or trust described in Subsection (4)(g)(i) that leases a
904	908		444
905	909		residential energy system may claim a tax credit under Subsection (3) for a period
906	910		445
907	911		that does not exceed seven taxable years after the date the lease begins, as stated
908	912		446
909	913		in the lease agreement.
910	914		447
911	915		(h) If a claimant, estate, or trust sells a residential unit to another person before the
912	916		448
913	917		claimant, estate, or trust claims the tax credit under Subsection (3):
914	918		449
915	919		(i) the claimant, estate, or trust may assign the tax credit to the other person; and
916	920		450
917	921		(ii)(A) if the other person files a return under Chapter 7, Corporate Franchise and
918	922		451
919	923		Income Taxes, the other person may claim the tax credit as if the other person
920	924		452
921	925		had met the requirements of Section 59-7-614 to claim the tax credit; or
922	926		453
923	927		(B) if the other person files a return under this chapter, the other person may claim
924	928		454
925	929		the tax credit under this section as if the other person had met the requirements
926	930		455
927	931		of this section to claim the tax credit.
928	932		456
929	933		(5)(a) Before a claimant, estate, or trust may claim a tax credit under this section, the
930	934		457
931	935		claimant, estate, or trust shall obtain a written certification from the office.
932	936		458
933	937		(b) The office shall issue a claimant, estate, or trust a written certification if the office
934	938		459
935	939		determines that:
936	940		460
937	941		(i) the claimant, estate, or trust meets the requirements of this section to receive a tax
938	942		461
939	943		credit; and
940	944		462
941	945		(ii) the office determines that the residential energy system with respect to which the
942	946		463
943	947		claimant, estate, or trust seeks to claim a tax credit:
944	948		464
945	949		(A) has been completely installed;
946	950		465
947	951		(B) is a viable system for saving or producing energy from clean resources; and
948	952		466
949	953		(C) is safe, reliable, efficient, and technically feasible to ensure that the residential
950	954		467
951	955		energy system uses the state's renewable and nonrenewable energy resources in
952	956		468
953	957		an appropriate and economic manner.
954	958		469
955	959		(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
	960	+	- 14 - 02-20 16:03 1st Sub. (Buff) H.B. 264
956	961		470
957	962		office may make rules:
958		-	- 14 - Enrolled Copy H.B. 264
959	963		471
960	964		(i) for determining whether a residential energy system meets the requirements of
961	965		472
962	966		Subsection (5)(b)(ii); and
963	967		473
964	968		(ii) for purposes of determining the amount of a tax credit that a claimant, estate, or
965	969		474
966	970		trust may receive under Subsection (4), establishing the reasonable costs of a
967	971		475
968	972		residential energy system, as an amount per unit of energy production.
969	973		476
970	974		(d) A claimant, estate, or trust that obtains a written certification from the office shall
971	975		477
972	976		retain the certification for the same time period a person is required to keep books
973	977		478
974	978		and records under Section 59-1-1406.
975	979		479
976	980		(e) The office shall submit to the commission an electronic list that includes:
977	981		480
978	982		(i) the name and identifying information of each claimant, estate, or trust to which the
979	983		481
980	984		office issues a written certification; and
981	985		482
982	986		(ii) for each claimant, estate, or trust:
983	987		483
984	988		(A) the amount of the tax credit listed on the written certification; and
985	989		484
986	990		(B) the date the clean energy system was installed.
987	991		485
988	992		(6) A tax credit under this section is in addition to any tax credits provided under the laws
989	993		486
990	994		or rules and regulations of the United States.
991	995		487
992	996		(7) A purchaser of one or more solar units that claims a tax credit under Section 59-10-1024
993	997		488
994	998		for the purchase of the one or more solar units may not claim a tax credit under this
995	999		489
996	1000		section for that purchase.
997	1001		490
998	1002		Section 3. Section 59-10-1106 is amended to read:
999	1003		491
1000	1004		59-10-1106 . Refundable clean energy systems tax credits -- Definitions --
1001	1005		492
1002	1006		Certification -- Rulemaking authority.
1003	1007		493
1004	1008		(1) As used in this section:
1005	1009		494
1006	1010		(a) "Active solar system" means the same as that term is defined in Section 59-10-1014.
1007	1011		495
1008	1012		(b) "Biomass system" means the same as that term is defined in Section 59-10-1014.
1009	1013		496
1010	1014		(c) "Commercial energy system" means the same as that term is defined in Section
1011	1015		497
1012	1016		59-7-614.
1013	1017		498
1014	1018		(d) "Commercial enterprise" means the same as that term is defined in Section 59-7-614.
1015	1019		499
1016	1020		(e) "Commercial unit" means the same as that term is defined in Section 59-7-614.
1017	1021		500
1018	1022		(f) "Direct use geothermal system" means the same as that term is defined in Section
1019	1023		501
1020	1024		59-10-1014.
1021	1025		502
1022	1026		(g) "Geothermal electricity" means the same as that term is defined in Section
1023	1027		503
1024	1028		59-10-1014.
	1029	+	- 15 - 1st Sub. (Buff) H.B. 264 02-20 16:03
1025	1030		504
1026	1031		(h) "Geothermal energy" means the same as that term is defined in Section 59-10-1014.
1027		-	- 15 - H.B. 264 Enrolled Copy
1028	1032		505
1029	1033		(i) "Geothermal heat pump system" means the same as that term is defined in Section
1030	1034		506
1031	1035		59-10-1014.
1032	1036		507
1033	1037		(j) "Hydroenergy system" means the same as that term is defined in Section 59-10-1014.
1034	1038		508
1035	1039		(k) "Hydrogen production system" means the same as that term is defined in Section
1036	1040		509
1037	1041		59-7-614.
1038	1042		510
1039	1043		(l) "Office" means the Office of Energy Development created in Section 79-6-401.
1040	1044		511
1041	1045		(m) "Passive solar system" means the same as that term is defined in Section 59-10-1014.
1042	1046		512
1043	1047		(n) "Principal recovery portion" means the same as that term is defined in Section
1044	1048		513
1045	1049		59-10-1014.
1046	1050		514
1047	1051		(o) "Wind system" means the same as that term is defined in Section 59-10-1014.
1048	1052		515
1049	1053		(2) A claimant, estate, or trust may claim an energy system tax credit as provided in this
1050	1054		516
1051	1055		section against a tax due under this chapter for [a taxable year] an energy system that is
1052	1056		517
1053		-	completed and placed in service before January 1, 2028.
	1057	+	completed and placed in service before January 1, Ŝ→ [2035] 2028 ←Ŝ .
1054	1058		518
1055	1059		(3)(a) Subject to the other provisions of this Subsection (3), a claimant, estate, or trust
1056	1060		519
1057	1061		may claim a refundable tax credit under this Subsection (3) with respect to a
1058	1062		520
1059	1063		commercial energy system if:
1060	1064		521
1061	1065		(i) the commercial energy system does not use:
1062	1066		522
1063	1067		(A) wind, geothermal electricity, solar, or biomass equipment capable of
1064	1068		523
1065	1069		producing a total of 660 or more kilowatts of electricity; or
1066	1070		524
1067	1071		(B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
1068	1072		525
1069	1073		(ii) the claimant, estate, or trust purchases or participates in the financing of the
1070	1074		526
1071	1075		commercial energy system;
1072	1076		527
1073	1077		(iii)(A) the commercial energy system supplies all or part of the energy required
1074	1078		528
1075	1079		by commercial units owned or used by the claimant, estate, or trust; or
1076	1080		529
1077	1081		(B) the claimant, estate, or trust sells all or part of the energy produced by the
1078	1082		530
1079	1083		commercial energy system as a commercial enterprise;
1080	1084		531
1081	1085		(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under
1082	1086		532
1083	1087		Subsection (6) for hydrogen production using electricity for which the claimant,
1084	1088		533
1085	1089		estate, or trust claims a tax credit under this Subsection (3); and
1086	1090		534
1087	1091		(v) the claimant, estate, or trust obtains a written certification from the office in
1088	1092		535
1089	1093		accordance with Subsection (7).
1090	1094		536
1091	1095		(b)(i) Subject to Subsections (3)(b)(ii) through (iv), the tax credit is equal to 10% of
1092	1096		537
1093	1097		the reasonable costs of the commercial energy system.
	1098	+	- 16 - 02-20 16:03 1st Sub. (Buff) H.B. 264
1094	1099		538
1095	1100		(ii) A tax credit under this Subsection (3) may include installation costs.
1096		-	- 16 - Enrolled Copy H.B. 264
1097	1101		539
1098	1102		(iii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
1099	1103		540
1100	1104		(3) for the taxable year in which the commercial energy system is completed and
1101	1105		541
1102	1106		placed in service.
1103	1107		542
1104	1108		(iv) The total amount of tax credit a claimant, estate, or trust may claim under this
1105	1109		543
1106	1110		Subsection (3) may not exceed $50,000 per commercial unit.
1107	1111		544
1108	1112		(c)(i) Subject to Subsections (3)(c)(ii) and (iii), a claimant, estate, or trust that is a
1109	1113		545
1110	1114		lessee of a commercial energy system installed on a commercial unit may claim a
1111	1115		546
1112	1116		tax credit under this Subsection (3) if the claimant, estate, or trust confirms that
1113	1117		547
1114	1118		the lessor irrevocably elects not to claim the tax credit.
1115	1119		548
1116	1120		(ii) A claimant, estate, or trust described in Subsection (3)(c)(i) may claim as a tax
1117	1121		549
1118	1122		credit under this Subsection (3) only the principal recovery portion of the lease
1119	1123		550
1120	1124		payments.
1121	1125		551
1122	1126		(iii) A claimant, estate, or trust described in Subsection (3)(c)(i) may claim a tax
1123	1127		552
1124	1128		credit under this Subsection (3) for a period that does not exceed seven taxable
1125	1129		553
1126	1130		years after the day on which the lease begins, as stated in the lease agreement.
1127	1131		554
1128	1132		(4)(a) Subject to the other provisions of this Subsection (4), a claimant, estate, or trust
1129	1133		555
1130	1134		may claim a refundable tax credit under this Subsection (4) with respect to a
1131	1135		556
1132	1136		commercial energy system if:
1133	1137		557
1134	1138		(i) the commercial energy system uses wind, geothermal electricity, or biomass
1135	1139		558
1136	1140		equipment capable of producing a total of 660 or more kilowatts of electricity;
1137	1141		559
1138	1142		(ii)(A) the commercial energy system supplies all or part of the energy required by
1139	1143		560
1140	1144		commercial units owned or used by the claimant, estate, or trust; or
1141	1145		561
1142	1146		(B) the claimant, estate, or trust sells all or part of the energy produced by the
1143	1147		562
1144	1148		commercial energy system as a commercial enterprise;
1145	1149		563
1146	1150		(iii) the claimant, estate, or trust has not claimed and will not claim a tax credit under
1147	1151		564
1148	1152		Subsection (6) for hydrogen production using electricity for which the claimant,
1149	1153		565
1150	1154		estate, or trust claims a tax credit under this Subsection (4); and
1151	1155		566
1152	1156		(iv) the claimant, estate, or trust obtains a written certification from the office in
1153	1157		567
1154	1158		accordance with Subsection (7).
1155	1159		568
1156	1160		(b)(i) Subject to Subsection (4)(b)(ii), a tax credit under this Subsection (4) is equal
1157	1161		569
1158	1162		to the product of:
1159	1163		570
1160	1164		(A) 0.35 cents; and
1161	1165		571
1162	1166		(B) the kilowatt hours of electricity produced and used or sold during the taxable
	1167	+	- 17 - 1st Sub. (Buff) H.B. 264 02-20 16:03
1163	1168		572
1164	1169		year.
1165		-	- 17 - H.B. 264 Enrolled Copy
1166	1170		573
1167	1171		(ii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
1168	1172		574
1169	1173		(4) for production occurring during a period of 48 months beginning with the
1170	1174		575
1171	1175		month in which the commercial energy system is placed in commercial service.
1172	1176		576
1173	1177		(c) A claimant, estate, or trust that is a lessee of a commercial energy system installed on
1174	1178		577
1175	1179		a commercial unit may claim a tax credit under this Subsection (4) if the claimant,
1176	1180		578
1177	1181		estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
1178	1182		579
1179	1183		(5)(a) Subject to the other provisions of this Subsection (5), a claimant, estate, or trust
1180	1184		580
1181	1185		may claim a refundable tax credit as provided in this Subsection (5) if:
1182	1186		581
1183	1187		(i) the claimant, estate, or trust owns a commercial energy system that uses solar
1184	1188		582
1185	1189		equipment capable of producing a total of 660 or more kilowatts of electricity;
1186	1190		583
1187	1191		(ii)(A) the commercial energy system supplies all or part of the energy required by
1188	1192		584
1189	1193		commercial units owned or used by the claimant, estate, or trust; or
1190	1194		585
1191	1195		(B) the claimant, estate, or trust sells all or part of the energy produced by the
1192	1196		586
1193	1197		commercial energy system as a commercial enterprise;
1194	1198		587
1195	1199		(iii) the claimant, estate, or trust does not claim a tax credit under Subsection (3);
1196	1200		588
1197	1201		(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under
1198	1202		589
1199	1203		Subsection (6) for hydrogen production using electricity for which a taxpayer
1200	1204		590
1201	1205		claims a tax credit under this Subsection (5); and
1202	1206		591
1203	1207		(v) the claimant, estate, or trust obtains a written certification from the office in
1204	1208		592
1205	1209		accordance with Subsection (7).
1206	1210		593
1207	1211		(b)(i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal
1208	1212		594
1209	1213		to the product of:
1210	1214		595
1211	1215		(A) 0.35 cents; and
1212	1216		596
1213	1217		(B) the kilowatt hours of electricity produced and used or sold during the taxable
1214	1218		597
1215	1219		year.
1216	1220		598
1217	1221		(ii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
1218	1222		599
1219	1223		(5) for production occurring during a period of 48 months beginning with the
1220	1224		600
1221	1225		month in which the commercial energy system is placed in commercial service.
1222	1226		601
1223	1227		(c) A claimant, estate, or trust that is a lessee of a commercial energy system installed on
1224	1228		602
1225	1229		a commercial unit may claim a tax credit under this Subsection (5) if the claimant,
1226	1230		603
1227	1231		estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
1228	1232		604
1229	1233		(6)(a) A claimant, estate, or trust may claim a refundable tax credit as provided in this
1230	1234		605
1231	1235		Subsection (6) if:
	1236	+	- 18 - 02-20 16:03 1st Sub. (Buff) H.B. 264
1232	1237		606
1233	1238		(i) the claimant, estate, or trust owns a hydrogen production system;
1234		-	- 18 - Enrolled Copy H.B. 264
1235	1239		607
1236	1240		(ii) the hydrogen production system is completed and placed in service on or after
1237	1241		608
1238	1242		January 1, 2022;
1239	1243		609
1240	1244		(iii) the claimant, estate, or trust sells as a commercial enterprise, or supplies for the
1241	1245		610
1242	1246		claimant's, estate's, or trust's own use in commercial units, the hydrogen produced
1243	1247		611
1244	1248		from the hydrogen production system;
1245	1249		612
1246	1250		(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under
1247	1251		613
1248	1252		Subsection (3), (4), or (5) for electricity used to meet the requirements of this
1249	1253		614
1250	1254		Subsection (6); and
1251	1255		615
1252	1256		(v) the claimant, estate, or trust obtains a written certification from the office in
1253	1257		616
1254	1258		accordance with Subsection (7).
1255	1259		617
1256	1260		(b)(i) Subject to Subsections (6)(b)(ii) and (iii), a tax credit under this Subsection (6)
1257	1261		618
1258	1262		is equal to the product of:
1259	1263		619
1260	1264		(A) $0.12; and
1261	1265		620
1262	1266		(B) the number of kilograms of hydrogen produced during the taxable year.
1263	1267		621
1264	1268		(ii) A claimant, estate, or trust may not receive a tax credit under this Subsection (6)
1265	1269		622
1266	1270		for more than 5,600 metric tons of hydrogen per taxable year.
1267	1271		623
1268	1272		(iii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
1269	1273		624
1270	1274		(6) for production occurring during a period of 48 months beginning with the
1271	1275		625
1272	1276		month in which the hydrogen production system is placed in commercial service.
1273	1277		626
1274	1278		(7)(a) Before a claimant, estate, or trust may claim a tax credit under this section, the
1275	1279		627
1276	1280		claimant, estate, or trust shall obtain a written certification from the office.
1277	1281		628
1278	1282		(b) The office shall issue a claimant, estate, or trust a written certification if the office
1279	1283		629
1280	1284		determines that:
1281	1285		630
1282	1286		(i) the claimant, estate, or trust meets the requirements of this section to receive a tax
1283	1287		631
1284	1288		credit; and
1285	1289		632
1286	1290		(ii) the commercial energy system or the hydrogen production system with respect to
1287	1291		633
1288	1292		which the claimant, estate, or trust seeks to claim a tax credit:
1289	1293		634
1290	1294		(A) has been completely installed;
1291	1295		635
1292	1296		(B) is a viable system for saving or producing energy from clean resources; and
1293	1297		636
1294	1298		(C) is safe, reliable, efficient, and technically feasible to ensure that the
1295	1299		637
1296	1300		commercial energy system or the hydrogen production system uses the state's
1297	1301		638
1298	1302		clean and nonrenewable resources in an appropriate and economic manner.
1299	1303		639
1300	1304		(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
	1305	+	- 19 - 1st Sub. (Buff) H.B. 264 02-20 16:03
1301	1306		640
1302	1307		office may make rules:
1303		-	- 19 - H.B. 264 Enrolled Copy
1304	1308		641
1305	1309		(i) for determining whether a commercial energy system or a hydrogen production
1306	1310		642
1307	1311		system meets the requirements of Subsection (7)(b)(ii); and
1308	1312		643
1309	1313		(ii) for purposes of a tax credit under Subsection (3), establishing the reasonable costs
1310	1314		644
1311	1315		of a commercial energy system, as an amount per unit of energy production.
1312	1316		645
1313	1317		(d) A claimant, estate, or trust that obtains a written certification from the office shall
1314	1318		646
1315	1319		retain the certification for the same time period a person is required to keep books
1316	1320		647
1317	1321		and records under Section 59-1-1406.
1318	1322		648
1319	1323		(e) The office shall submit to the commission an electronic list that includes:
1320	1324		649
1321	1325		(i) the name and identifying information of each claimant, estate, or trust to which the
1322	1326		650
1323	1327		office issues a written certification; and
1324	1328		651
1325	1329		(ii) for each claimant, estate, or trust:
1326	1330		652
1327	1331		(A) the amount of the tax credit listed on the written certification; and
1328	1332		653
1329	1333		(B) the date the commercial energy system or the hydrogen production system
1330	1334		654
1331	1335		was installed.
1332	1336		655
1333	1337		(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1334	1338		656
1335	1339		commission may make rules to address the certification of a tax credit under this section.
1336	1340		657
1337	1341		(9) A tax credit under this section is in addition to any tax credits provided under the laws
1338	1342		658
1339	1343		or rules and regulations of the United States.
1340	1344		659
1341	1345		(10) A purchaser of one or more solar units that claims a tax credit under Section
1342	1346		660
1343	1347		59-10-1024 for the purchase of the one or more solar units may not claim a tax credit
1344	1348		661
1345	1349		under this section for that purchase.
1346	1350		662
1347	1351		(11) A claimant, estate, or trust may not claim or carry forward a tax credit described in this
1348	1352		663
1349	1353		section in a taxable year during which the claimant, estate, or trust claims or carries
1350	1354		664
1351	1355		forward a tax credit under Section 59-10-1029.
1352	1356		665
1353	1357		Section 4. Repealer.
1354	1358		666
1355	1359		This bill repeals:
1356	1360		667
1357	1361		Section 59-7-614.7, Nonrefundable alternative energy development tax credit.
1358	1362		668
1359	1363		Section 59-10-1024, Nonrefundable tax credit for qualifying solar projects.
1360	1364		669
1361	1365		Section 59-10-1029, Nonrefundable alternative energy development tax credit.
1362	1366		670
1363	1367		Section 5. Effective Date.
1364	1368		671
1365	1369		This bill takes effect on May 7, 2025.
1366	1370		672
1367	1371		Section 6. Retrospective operation.
1368	1372		673
1369	1373		This bill has retrospective operation for a taxable year beginning on or after January 1,
	1374	+	- 20 - 02-20 16:03 1st Sub. (Buff) H.B. 264
1370	1375		674
1371	1376		2025.
1372		-	- 20 -
	1377	+	- 21 -