Utah 2025 Regular Session

Utah Senate Bill SB0192 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	Enrolled Copy S.B. 192
	1	+	02-12 17:20 5th Sub. (Gray) S.B. 192
	2	+	Derrin R. Owens proposes the following substitute bill:
2	3		1
3	4		Commercial Wind and Solar Incentives Amendments
4	5		2025 GENERAL SESSION
5	6		STATE OF UTAH
6	7		Chief Sponsor: Derrin R. Owens
7		-	House Sponsor: ~~Carl R. Albrecht~~
	8	+	House Sponsor:
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 tax credit requirements for certain commercial wind and solar energy
16	17		6
17	18		systems.
18	19		7
19	20		Highlighted Provisions:
20	21		8
21	22		This bill:
22	23		9
23	24		▸ defines terms;
24	25		10
25	26		▸ requires commercial wind and solar energy systems of 660 or more kilowatts to include
26	27		11
27	28		energy storage systems to qualify for tax credits; and
28	29		12
29	30		▸ makes technical changes.
30	31		13
31	32		Money Appropriated in this Bill:
32	33		14
33	34		None
34	35		15
35	36		Other Special Clauses:
36	37		16
37	38		This bill provides a special effective date.
38	39		17
39	40		Utah Code Sections Affected:
40	41		18
41	42		AMENDS:
42	43		19
43	44		59-7-614, as last amended by Laws of Utah 2024, Chapter 53
44	45		20
45	46		59-10-1106, as last amended by Laws of Utah 2024, Chapter 53
46	47		21
47	48
48	49		22
49	50		Be it enacted by the Legislature of the state of Utah:
50	51		23
51	52		Section 1. Section 59-7-614 is amended to read:
52	53		24
53	54		59-7-614 . Clean energy systems tax credits -- Definitions -- Certification --
54	55		25
55	56		Rulemaking authority.
56	57		26
57	58		(1) As used in this section:
58	59		27
59	60		(a)(i) "Active solar system" means a system of equipment that is capable of:
60	61		28
61		-	(A) collecting and converting incident solar radiation into thermal, mechanical, or ~~S.B. 192 Enrolled Copy~~
	62	+	(A) collecting and converting incident solar radiation into thermal, mechanical, or
62	63		29
63	64		electrical energy; and
	65	+	5th Sub. S.B. 192 5th Sub. (Gray) S.B. 192 02-12 17:20
64	66		30
65	67		(B) transferring a form of energy described in Subsection (1)(a)(i)(A) by a
66	68		31
67	69		separate apparatus to storage or to the point of use.
68	70		32
69	71		(ii) "Active solar system" includes water heating, space heating or cooling, and
70	72		33
71	73		electrical or mechanical energy generation.
72	74		34
73	75		(b) "Adequate energy storage" means an energy storage system that:
74	76		35
75	77		(i) is capable of storing electrical energy produced by a commercial energy system;
76	78		36
77	79		(ii) can provide at least six hours of the commercial energy system's expected peak
78	80		37
79	81		daily generation; and
80	82		38
81	83		(iii) enables the commercial energy system to meet the requirements of being
82	84		39
83	85		dispatchable and reliable.
84	86		40
85	87		[(b)] (c) "Biomass system" means a system of apparatus and equipment for use in:
86	88		41
87	89		(i) converting material into biomass energy, as defined in Section 59-12-102; and
88	90		42
89	91		(ii) transporting the biomass energy by separate apparatus to the point of use or
90	92		43
91	93		storage.
92	94		44
93	95		[(c)] (d) "Clean energy source" means the same as that term is defined in Section
94	96		45
95	97		54-17-601.
96	98		46
97	99		[(d)] (e) "Commercial energy system" means a system that is:
98	100		47
99	101		(i)(A) an active solar system;
100	102		48
101	103		(B) a biomass system;
102	104		49
103	105		(C) a direct use geothermal system;
104	106		50
105	107		(D) a geothermal electricity system;
106	108		51
107	109		(E) a geothermal heat pump system;
108	110		52
109	111		(F) a hydroenergy system;
110	112		53
111	113		(G) a passive solar system; or
112	114		54
113	115		(H) a wind system;
114	116		55
115	117		(ii) located in the state; and
116	118		56
117	119		(iii) used:
118	120		57
119	121		(A) to supply energy to a commercial unit; or
120	122		58
121	123		(B) as a commercial enterprise.
122	124		59
123	125		[(e)] (f) "Commercial enterprise" means an entity, the purpose of which is to produce:
124	126		60
125	127		(i) electrical, mechanical, or thermal energy for sale from a commercial energy
126	128		61
127	129		system; or
128	130		62
129	131		(ii) hydrogen for sale from a hydrogen production system.
130		-	- 2 - Enrolled Copy S.B. 192
131	132		63
132	133		[(f)] (g)(i) "Commercial unit" means a building or structure that an entity uses to
	134	+	- 2 - 02-12 17:20 5th Sub. (Gray) S.B. 192
133	135		64
134	136		transact business.
135	137		65
136	138		(ii) Notwithstanding Subsection [(1)(f)(i)] (1)(g)(i):
137	139		66
138	140		(A) with respect to an active solar system used for agricultural water pumping or a
139	141		67
140	142		wind system, each individual energy generating device is considered to be a
141	143		68
142	144		commercial unit; or
143	145		69
144	146		(B) if an energy system is the building or structure that an entity uses to transact
145	147		70
146	148		business, a commercial unit is the complete energy system itself.
147	149		71
148	150		[(g)] (h) "Direct use geothermal system" means a system of apparatus and equipment that
149	151		72
150	152		enables the direct use of geothermal energy to meet energy needs, including heating a
151	153		73
152	154		building, an industrial process, and aquaculture.
153	155		74
154	156		(i) "Dispatchable" means the same as that term is defined in Section 79-6-102.
155	157		75
156	158		[(h)] (j) "Geothermal electricity" means energy that is:
157	159		76
158	160		(i) contained in heat that continuously flows outward from the earth; and
159	161		77
160	162		(ii) used as a sole source of energy to produce electricity.
161	163		78
162	164		[(i)] (k) "Geothermal energy" means energy generated by heat that is contained in the
163	165		79
164	166		earth.
165	167		80
166	168		[(j)] (l) "Geothermal heat pump system" means a system of apparatus and equipment that:
167	169		81
168	170		(i) enables the use of thermal properties contained in the earth at temperatures well
169	171		82
170	172		below 100 degrees Fahrenheit; and
171	173		83
172	174		(ii) helps meet heating and cooling needs of a structure.
173	175		84
174	176		[(k)] (m) "Hydroenergy system" means a system of apparatus and equipment that is
175	177		85
176	178		capable of:
177	179		86
178	180		(i) intercepting and converting kinetic water energy into electrical or mechanical
179	181		87
180	182		energy; and
181	183		88
182	184		(ii) transferring this form of energy by separate apparatus to the point of use or
183	185		89
184	186		storage.
185	187		90
186	188		[(l)] (n) "Hydrogen production system" means a system of apparatus and equipment,
187	189		91
188	190		located in this state, that uses:
189	191		92
190	192		(i) electricity from a clean energy source to create hydrogen gas from water,
191	193		93
192	194		regardless of whether the clean energy source is at a separate facility or the same
193	195		94
194	196		facility as the system of apparatus and equipment; or
195	197		95
196	198		(ii) uses renewable natural gas to produce hydrogen gas.
197	199		96
198	200		(o) "Interconnection queue" means the list of requests from power generation projects
199		-	- 3 - S.B. 192 Enrolled Copy
200	201		97
201	202		maintained by a transmission provider that are waiting to connect to the electrical
	203	+	- 3 - 5th Sub. (Gray) S.B. 192 02-12 17:20
202	204		98
203	205		grid.
204	206		99
205	207		[(m)] (p) "Office" means the Office of Energy Development created in Section 79-6-401.
206	208		100
207	209		[(n)] (q)(i) "Passive solar system" means a direct thermal system that utilizes the
208	210		101
209	211		structure of a building and the structure's operable components to provide for
210	212		102
211	213		collection, storage, and distribution of heating or cooling during the appropriate
212	214		103
213	215		times of the year by utilizing the climate resources available at the site.
214	216		104
215	217		(ii) "Passive solar system" includes those portions and components of a building that
216	218		105
217	219		are expressly designed and required for the collection, storage, and distribution of
218	220		106
219	221		solar energy.
220	222		107
221	223		(r) "Peak daily generation" means the total electricity generation during the highest
222	224		108
223	225		generation month of a calendar year, divided by the number of days in that month.
224	226		109
225	227		[(o)] (s) "Photovoltaic system" means an active solar system that generates electricity
226	228		110
227	229		from sunlight.
228	230		111
229	231		[(p)] (t)(i) "Principal recovery portion" means the portion of a lease payment that
230	232		112
231	233		constitutes the cost a person incurs in acquiring a commercial energy system.
232	234		113
233	235		(ii) "Principal recovery portion" does not include:
234	236		114
235	237		(A) an interest charge; or
236	238		115
237	239		(B) a maintenance expense.
238	240		116
239	241		(u) "Reliable" means the same as that term is defined in Section 79-6-102.
240	242		117
241	243		[(q)] (v) "Residential energy system" means the following used to supply energy to or for
242	244		118
243	245		a residential unit:
244	246		119
245	247		(i) an active solar system;
246	248		120
247	249		(ii) a biomass system;
248	250		121
249	251		(iii) a direct use geothermal system;
250	252		122
251	253		(iv) a geothermal heat pump system;
252	254		123
253	255		(v) a hydroenergy system;
254	256		124
255	257		(vi) a passive solar system; or
256	258		125
257	259		(vii) a wind system.
258	260		126
259	261		[(r)] (w)(i) "Residential unit" means a house, condominium, apartment, or similar
260	262		127
261	263		dwelling unit that:
262	264		128
263	265		(A) is located in the state; and
264	266		129
265	267		(B) serves as a dwelling for a person, group of persons, or a family.
266	268		130
267	269		(ii) "Residential unit" does not include property subject to a fee under:
268		-	- 4 - Enrolled Copy S.B. 192
269	270		131
270	271		(A) Section 59-2-405;
	272	+	- 4 - 02-12 17:20 5th Sub. (Gray) S.B. 192
271	273		132
272	274		(B) Section 59-2-405.1;
273	275		133
274	276		(C) Section 59-2-405.2;
275	277		134
276	278		(D) Section 59-2-405.3; or
277	279		135
278	280		(E) Section 72-10-110.5.
279	281		136
280	282		[(s)] (x) "Wind system" means a system of apparatus and equipment that is capable of:
281	283		137
282	284		(i) intercepting and converting wind energy into mechanical or electrical energy; and
283	285		138
284	286		(ii) transferring these forms of energy by a separate apparatus to the point of use,
285	287		139
286	288		sale, or storage.
287	289		140
288	290		(2) A taxpayer may claim an energy system tax credit as provided in this section against a
289	291		141
290	292		tax due under this chapter for a taxable year.
291	293		142
292	294		(3)(a) Subject to the other provisions of this Subsection (3), a taxpayer may claim a
293	295		143
294	296		nonrefundable tax credit under this Subsection (3) with respect to a residential unit
295	297		144
296	298		the taxpayer owns or uses if:
297	299		145
298	300		(i) the taxpayer:
299	301		146
300	302		(A) purchases and completes a residential energy system to supply all or part of
301	303		147
302	304		the energy required for the residential unit; or
303	305		148
304	306		(B) participates in the financing of a residential energy system to supply all or part
305	307		149
306	308		of the energy required for the residential unit; and
307	309		150
308	310		(ii) the taxpayer obtains a written certification from the office in accordance with
309	311		151
310	312		Subsection (8).
311	313		152
312	314		(b)(i) Subject to Subsections (3)(b)(ii) through (iv) and, as applicable, Subsection
313	315		153
314	316		(3)(c) or (d), the tax credit is equal to 25% of the reasonable costs of each
315	317		154
316	318		residential energy system installed with respect to each residential unit the
317	319		155
318	320		taxpayer owns or uses.
319	321		156
320	322		(ii) A tax credit under this Subsection (3) may include installation costs.
321	323		157
322	324		(iii) A taxpayer may claim a tax credit under this Subsection (3) for the taxable year
323	325		158
324	326		in which the residential energy system is completed and placed in service.
325	327		159
326	328		(iv) If the amount of a tax credit under this Subsection (3) exceeds a taxpayer's tax
327	329		160
328	330		liability under this chapter for a taxable year, the taxpayer may carry forward the
329	331		161
330	332		amount of the tax credit exceeding the liability for a period that does not exceed
331	333		162
332	334		the next four taxable years.
333	335		163
334	336		(c) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
335	337		164
336	338		residential energy system, other than a photovoltaic system, may not exceed $2,000
337		-	- 5 - S.B. 192 Enrolled Copy
338	339		165
339	340		per residential unit.
	341	+	- 5 - 5th Sub. (Gray) S.B. 192 02-12 17:20
340	342		166
341	343		(d) The total amount of tax credit a taxpayer may claim under this Subsection (3) for a
342	344		167
343	345		photovoltaic system may not exceed:
344	346		168
345	347		(i) for a system installed on or after January 1, 2018, but on or before December 31,
346	348		169
347	349		2020, $1,600;
348	350		170
349	351		(ii) for a system installed on or after January 1, 2021, but on or before December 31,
350	352		171
351	353		2021, $1,200;
352	354		172
353	355		(iii) for a system installed on or after January 1, 2022, but on or before December 31,
354	356		173
355	357		2022, $800;
356	358		174
357	359		(iv) for a system installed on or after January 1, 2023, but on or before December 31,
358	360		175
359	361		2023, $400; and
360	362		176
361	363		(v) for a system installed on or after January 1, 2024, $0.
362	364		177
363	365		(e) If a taxpayer sells a residential unit to another person before the taxpayer claims the
364	366		178
365	367		tax credit under this Subsection (3):
366	368		179
367	369		(i) the taxpayer may assign the tax credit to the other person; and
368	370		180
369	371		(ii)(A) if the other person files a return under this chapter, the other person may
370	372		181
371	373		claim the tax credit under this section as if the other person had met the
372	374		182
373	375		requirements of this section to claim the tax credit; or
374	376		183
375	377		(B) if the other person files a return under Chapter 10, Individual Income Tax Act,
376	378		184
377	379		the other person may claim the tax credit under Section 59-10-1014 as if the
378	380		185
379	381		other person had met the requirements of Section 59-10-1014 to claim the tax
380	382		186
381	383		credit.
382	384		187
383	385		(4)(a) Subject to the other provisions of this Subsection (4), a taxpayer may claim a
384	386		188
385	387		refundable tax credit under this Subsection (4) with respect to a commercial energy
386	388		189
387	389		system if:
388	390		190
389	391		(i) the commercial energy system does not use:
390	392		191
391	393		(A) wind, geothermal electricity, solar, or biomass equipment capable of
392	394		192
393	395		producing a total of 660 or more kilowatts of electricity; or
394	396		193
395	397		(B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
396	398		194
397	399		(ii) the taxpayer purchases or participates in the financing of the commercial energy
398	400		195
399	401		system;
400	402		196
401	403		(iii)(A) the commercial energy system supplies all or part of the energy required
402	404		197
403	405		by commercial units owned or used by the taxpayer; or
404	406		198
405	407		(B) the taxpayer sells all or part of the energy produced by the commercial energy
406		-	- 6 - Enrolled Copy S.B. 192
407	408		199
408	409		system as a commercial enterprise;
	410	+	- 6 - 02-12 17:20 5th Sub. (Gray) S.B. 192
409	411		200
410	412		(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (7)
411	413		201
412	414		for hydrogen production using electricity for which the taxpayer claims a tax
413	415		202
414	416		credit under this Subsection (4); and
415	417		203
416	418		(v) the taxpayer obtains a written certification from the office in accordance with
417	419		204
418	420		Subsection (8).
419	421		205
420	422		(b)(i) Subject to Subsections (4)(b)(ii) through (iv), the tax credit is equal to 10% of
421	423		206
422	424		the reasonable costs of the commercial energy system.
423	425		207
424	426		(ii) A tax credit under this Subsection (4) may include installation costs.
425	427		208
426	428		(iii) A taxpayer is eligible to claim a tax credit under this Subsection (4) for the
427	429		209
428	430		taxable year in which the commercial energy system is completed and placed in
429	431		210
430	432		service.
431	433		211
432	434		(iv) The total amount of tax credit a taxpayer may claim under this Subsection (4)
433	435		212
434	436		may not exceed $50,000 per commercial unit.
435	437		213
436	438		(c)(i) Subject to Subsections (4)(c)(ii) and (iii), a taxpayer that is a lessee of a
437	439		214
438	440		commercial energy system installed on a commercial unit may claim a tax credit
439	441		215
440	442		under this Subsection (4) if the taxpayer confirms that the lessor irrevocably elects
441	443		216
442	444		not to claim the tax credit.
443	445		217
444	446		(ii) A taxpayer described in Subsection (4)(c)(i) may claim as a tax credit under this
445	447		218
446	448		Subsection (4) only the principal recovery portion of the lease payments.
447	449		219
448	450		(iii) A taxpayer described in Subsection (4)(c)(i) may claim a tax credit under this
449	451		220
450	452		Subsection (4) for a period that does not exceed seven taxable years after the day
451	453		221
452	454		on which the lease begins, as stated in the lease agreement.
453	455		222
454	456		(5)(a) Subject to the other provisions of this Subsection (5), a taxpayer may claim a
455	457		223
456	458		refundable tax credit under this Subsection (5) with respect to a commercial energy
457	459		224
458	460		system if:
459	461		225
460	462		(i) the commercial energy system uses wind, geothermal electricity, or biomass
461	463		226
462	464		equipment capable of producing a total of 660 or more kilowatts of electricity;
463	465		227
464	466		(ii)(A) the commercial energy system supplies all or part of the energy required by
465	467		228
466	468		commercial units owned or used by the taxpayer; or
467	469		229
468	470		(B) the taxpayer sells all or part of the energy produced by the commercial energy
469	471		230
470	472		system as a commercial enterprise;
471	473		231
472	474		(iii) for a commercial energy system using wind, the system includes adequate energy
473	475		232
474	476		storage;
475		-	- 7 - S.B. 192 Enrolled Copy
476	477		233
477	478		[(iii)] (iv) the taxpayer has not claimed and will not claim a tax credit under
	479	+	- 7 - 5th Sub. (Gray) S.B. 192 02-12 17:20
478	480		234
479	481		Subsection (7) for hydrogen production using electricity for which the taxpayer
480	482		235
481	483		claims a tax credit under this Subsection (5); and
482	484		236
483	485		[(iv)] (v) the taxpayer obtains a written certification from the office in accordance
484	486		237
485	487		with Subsection (8).
486	488		238
487	489		(b)(i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal
488	490		239
489	491		to the product of:
490	492		240
491	493		(A) 0.35 cents; and
492	494		241
493	495		(B) the kilowatt hours of electricity produced and used or sold during the taxable
494	496		242
495	497		year.
496	498		243
497	499		(ii) A taxpayer is eligible to claim a tax credit under this Subsection (5) for
498	500		244
499	501		production occurring during a period of 48 months beginning with the month in
500	502		245
501	503		which the commercial energy system is placed in commercial service.
502	504		246
503	505		(c) For purposes of calculating the tax credit under this Subsection (5), electricity that is
504	506		247
505	507		stored and later sold may only be counted at the time the electricity is sold from
506	508		248
507	509		storage.
508	510		249
509	511		[(c)] (d) A taxpayer that is a lessee of a commercial energy system installed on a
510	512		250
511	513		commercial unit may claim a tax credit under this Subsection (5) if the taxpayer
512	514		251
513	515		confirms that the lessor irrevocably elects not to claim the tax credit.
514	516		252
515	517		(e) Notwithstanding Subsection (5)(a)(iii), a commercial energy system is exempt from
516	518		253
517	519		the energy storage requirement if the system had a position in an interconnection
518	520		254
519	521		queue or a signed agreement with a transmission provider before January 1, 2025.
520	522		255
521	523		(6)(a) Subject to the other provisions of this Subsection (6), a taxpayer may claim a
522	524		256
523	525		refundable tax credit as provided in this Subsection (6) if:
524	526		257
525	527		(i) the taxpayer owns a commercial energy system that:
526	528		258
527	529		(A) uses solar equipment capable of producing a total of 660 or more kilowatts of
528	530		259
529	531		electricity; and
530	532		260
531	533		(B) includes adequate energy storage;
532	534		261
533	535		(ii)(A) the commercial energy system supplies all or part of the energy required by
534	536		262
535	537		commercial units owned or used by the taxpayer; or
536	538		263
537	539		(B) the taxpayer sells all or part of the energy produced by the commercial energy
538	540		264
539	541		system as a commercial enterprise;
540	542		265
541	543		(iii) the taxpayer does not claim a tax credit under Subsection (4) and has not claimed
542	544		266
543	545		and will not claim a tax credit under Subsection (7) for hydrogen production using
544		-	- 8 - Enrolled Copy S.B. 192
545	546		267
546	547		electricity for which a taxpayer claims a tax credit under this Subsection (6); and
	548	+	- 8 - 02-12 17:20 5th Sub. (Gray) S.B. 192
547	549		268
548	550		(iv) the taxpayer obtains a written certification from the office in accordance with
549	551		269
550	552		Subsection (8).
551	553		270
552	554		(b)(i) Subject to Subsection (6)(b)(ii), a tax credit under this Subsection (6) is equal
553	555		271
554	556		to the product of:
555	557		272
556	558		(A) 0.35 cents; and
557	559		273
558	560		(B) the kilowatt hours of electricity produced and used or sold during the taxable
559	561		274
560	562		year.
561	563		275
562	564		(ii) A taxpayer is eligible to claim a tax credit under this Subsection (6) for
563	565		276
564	566		production occurring during a period of 48 months beginning with the month in
565	567		277
566	568		which the commercial energy system is placed in commercial service.
567	569		278
568	570		(c) For purposes of calculating the tax credit under this Subsection (6), electricity that is
569	571		279
570	572		stored and later sold may only be counted at the time the electricity is sold from
571	573		280
572	574		storage.
573	575		281
574	576		[(c)] (d) A taxpayer that is a lessee of a commercial energy system installed on a
575	577		282
576	578		commercial unit may claim a tax credit under this Subsection (6) if the taxpayer
577	579		283
578	580		confirms that the lessor irrevocably elects not to claim the tax credit.
579	581		284
580	582		(e) Notwithstanding Subsection (6)(a)(i)(B), a commercial energy system is exempt
581	583		285
582	584		from the energy storage requirement if the system had a position in an
583	585		286
584	586		interconnection queue or a signed agreement with a transmission provider before
585	587		287
586	588		January 1, 2025.
587	589		288
588	590		(7)(a) A taxpayer may claim a refundable tax credit as provided in this Subsection (7) if:
589	591		289
590	592		(i) the taxpayer owns a hydrogen production system;
591	593		290
592	594		(ii) the hydrogen production system is completed and placed in service on or after
593	595		291
594	596		January 1, 2022;
595	597		292
596	598		(iii) the taxpayer sells as a commercial enterprise, or supplies for the taxpayer's own
597	599		293
598	600		use in commercial units, the hydrogen produced from the hydrogen production
599	601		294
600	602		system;
601	603		295
602	604		(iv) the taxpayer has not claimed and will not claim a tax credit under Subsection (4),
603	605		296
604	606		(5), or (6) or Section 59-7-626 for electricity or hydrogen used to meet the
605	607		297
606	608		requirements of this Subsection (7); and
607	609		298
608	610		(v) the taxpayer obtains a written certification from the office in accordance with
609	611		299
610	612		Subsection (8).
611	613		300
612	614		(b)(i) Subject to Subsections (7)(b)(ii) and (iii), a tax credit under this Subsection (7)
613		-	- 9 - S.B. 192 Enrolled Copy
614	615		301
615	616		is equal to the product of:
	617	+	- 9 - 5th Sub. (Gray) S.B. 192 02-12 17:20
616	618		302
617	619		(A) $0.12; and
618	620		303
619	621		(B) the number of kilograms of hydrogen produced during the taxable year.
620	622		304
621	623		(ii) A taxpayer may not receive a tax credit under this Subsection (7) for more than
622	624		305
623	625		5,600 metric tons of hydrogen per taxable year.
624	626		306
625	627		(iii) A taxpayer is eligible to claim a tax credit under this Subsection (7) for
626	628		307
627	629		production occurring during a period of 48 months beginning with the month in
628	630		308
629	631		which the hydrogen production system is placed in commercial service.
630	632		309
631	633		(8)(a) Before a taxpayer may claim a tax credit under this section, the taxpayer shall
632	634		310
633	635		obtain a written certification from the office.
634	636		311
635	637		(b) The office shall issue a taxpayer a written certification if the office determines that:
636	638		312
637	639		(i) the taxpayer meets the requirements of this section to receive a tax credit; and
638	640		313
639	641		(ii) the residential energy system, the commercial energy system, or the hydrogen
640	642		314
641	643		production system with respect to which the taxpayer seeks to claim a tax credit:
642	644		315
643	645		(A) has been completely installed;
644	646		316
645	647		(B) is a viable system for saving or producing energy from clean resources; and
646	648		317
647	649		(C) is safe, reliable, efficient, and technically feasible to ensure that the residential
648	650		318
649	651		energy system, the commercial energy system, or the hydrogen production
650	652		319
651	653		system uses the state's clean and nonrenewable energy resources in an
652	654		320
653	655		appropriate and economic manner.
654	656		321
655	657		(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
656	658		322
657	659		office may make rules:
658	660		323
659	661		(i) for determining whether a residential energy system, a commercial energy system,
660	662		324
661	663		or a hydrogen production system meets the requirements of Subsection (8)(b)(ii);
662	664		325
663	665		and
664	666		326
665	667		(ii) for purposes of a tax credit under Subsection (3) or (4), establishing the
666	668		327
667	669		reasonable costs of a residential energy system or a commercial energy system, as
668	670		328
669	671		an amount per unit of energy production.
670	672		329
671	673		(d) A taxpayer that obtains a written certification from the office shall retain the
672	674		330
673	675		certification for the same time period a person is required to keep books and records
674	676		331
675	677		under Section 59-1-1406.
676	678		332
677	679		(e) The office shall submit to the commission an electronic list that includes:
678	680		333
679	681		(i) the name and identifying information of each taxpayer to which the office issues a
680	682		334
681	683		written certification; and
682		-	- 10 - Enrolled Copy S.B. 192
683	684		335
684	685		(ii) for each taxpayer:
	686	+	- 10 - 02-12 17:20 5th Sub. (Gray) S.B. 192
685	687		336
686	688		(A) the amount of the tax credit listed on the written certification; and
687	689		337
688	690		(B) the date the clean energy system was installed.
689	691		338
690	692		(9) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
691	693		339
692	694		commission may make rules to address the certification of a tax credit under this section.
693	695		340
694	696		(10) A tax credit under this section is in addition to any tax credits provided under the laws
695	697		341
696	698		or rules and regulations of the United States.
697	699		342
698	700		(11) A taxpayer may not claim or carry forward a tax credit described in this section in a
699	701		343
700	702		taxable year during which the taxpayer claims or carries forward a tax credit under
701	703		344
702	704		Section 59-7-614.7.
703	705		345
704	706		Section 2. Section 59-10-1106 is amended to read:
705	707		346
706	708		59-10-1106 . Refundable clean energy systems tax credits -- Definitions --
707	709		347
708	710		Certification -- Rulemaking authority.
709	711		348
710	712		(1) As used in this section:
711	713		349
712	714		(a) "Active solar system" means the same as that term is defined in Section 59-10-1014.
713	715		350
714	716		(b) "Adequate energy storage" means the same as that term is defined in Section
715	717		351
716	718		59-7-614.
717	719		352
718	720		[(b)] (c) "Biomass system" means the same as that term is defined in Section 59-10-1014.
719	721		353
720	722		[(c)] (d) "Commercial energy system" means the same as that term is defined in Section
721	723		354
722	724		59-7-614.
723	725		355
724	726		[(d)] (e) "Commercial enterprise" means the same as that term is defined in Section
725	727		356
726	728		59-7-614.
727	729		357
728	730		[(e)] (f) "Commercial unit" means the same as that term is defined in Section 59-7-614.
729	731		358
730	732		[(f)] (g) "Direct use geothermal system" means the same as that term is defined in
731	733		359
732	734		Section 59-10-1014.
733	735		360
734	736		(h) "Dispatchable" means the same as that term is defined in Section 79-6-102.
735	737		361
736	738		[(g)] (i) "Geothermal electricity" means the same as that term is defined in Section
737	739		362
738	740		59-10-1014.
739	741		363
740	742		[(h)] (j) "Geothermal energy" means the same as that term is defined in Section
741	743		364
742	744		59-10-1014.
743	745		365
744	746		[(i)] (k) "Geothermal heat pump system" means the same as that term is defined in
745	747		366
746	748		Section 59-10-1014.
747	749		367
748	750		[(j)] (l) "Hydroenergy system" means the same as that term is defined in Section
749	751		368
750	752		59-10-1014.
751		-	- 11 - S.B. 192 Enrolled Copy
752	753		369
753	754		[(k)] (m) "Hydrogen production system" means the same as that term is defined in
	755	+	- 11 - 5th Sub. (Gray) S.B. 192 02-12 17:20
754	756		370
755	757		Section 59-7-614.
756	758		371
757	759		(n) "Interconnection queue" means the same as that term is defined in Section 59-7-614.
758	760		372
759	761		[(l)] (o) "Office" means the Office of Energy Development created in Section 79-6-401.
760	762		373
761	763		[(m)] (p) "Passive solar system" means the same as that term is defined in Section
762	764		374
763	765		59-10-1014.
764	766		375
765	767		(q) "Peak daily generation" means the same as that term is defined in Section 59-7-614.
766	768		376
767	769		[(n)] (r) "Principal recovery portion" means the same as that term is defined in Section
768	770		377
769	771		59-10-1014.
770	772		378
771	773		(s) "Reliable" means the same as that term is defined in Section 79-6-102.
772	774		379
773	775		[(o)] (t) "Wind system" means the same as that term is defined in Section 59-10-1014.
774	776		380
775	777		(2) A claimant, estate, or trust may claim an energy system tax credit as provided in this
776	778		381
777	779		section against a tax due under this chapter for a taxable year.
778	780		382
779	781		(3)(a) Subject to the other provisions of this Subsection (3), a claimant, estate, or trust
780	782		383
781	783		may claim a refundable tax credit under this Subsection (3) with respect to a
782	784		384
783	785		commercial energy system if:
784	786		385
785	787		(i) the commercial energy system does not use:
786	788		386
787	789		(A) wind, geothermal electricity, solar, or biomass equipment capable of
788	790		387
789	791		producing a total of 660 or more kilowatts of electricity; or
790	792		388
791	793		(B) solar equipment capable of producing 2,000 or more kilowatts of electricity;
792	794		389
793	795		(ii) the claimant, estate, or trust purchases or participates in the financing of the
794	796		390
795	797		commercial energy system;
796	798		391
797	799		(iii)(A) the commercial energy system supplies all or part of the energy required
798	800		392
799	801		by commercial units owned or used by the claimant, estate, or trust; or
800	802		393
801	803		(B) the claimant, estate, or trust sells all or part of the energy produced by the
802	804		394
803	805		commercial energy system as a commercial enterprise;
804	806		395
805	807		(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under
806	808		396
807	809		Subsection (6) for hydrogen production using electricity for which the claimant,
808	810		397
809	811		estate, or trust claims a tax credit under this Subsection (3); and
810	812		398
811	813		(v) the claimant, estate, or trust obtains a written certification from the office in
812	814		399
813	815		accordance with Subsection (7).
814	816		400
815	817		(b)(i) Subject to Subsections (3)(b)(ii) through (iv), the tax credit is equal to 10% of
816	818		401
817	819		the reasonable costs of the commercial energy system.
818	820		402
819	821		(ii) A tax credit under this Subsection (3) may include installation costs.
820		-	- 12 - Enrolled Copy S.B. 192
821	822		403
822	823		(iii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
	824	+	- 12 - 02-12 17:20 5th Sub. (Gray) S.B. 192
823	825		404
824	826		(3) for the taxable year in which the commercial energy system is completed and
825	827		405
826	828		placed in service.
827	829		406
828	830		(iv) The total amount of tax credit a claimant, estate, or trust may claim under this
829	831		407
830	832		Subsection (3) may not exceed $50,000 per commercial unit.
831	833		408
832	834		(c)(i) Subject to Subsections (3)(c)(ii) and (iii), a claimant, estate, or trust that is a
833	835		409
834	836		lessee of a commercial energy system installed on a commercial unit may claim a
835	837		410
836	838		tax credit under this Subsection (3) if the claimant, estate, or trust confirms that
837	839		411
838	840		the lessor irrevocably elects not to claim the tax credit.
839	841		412
840	842		(ii) A claimant, estate, or trust described in Subsection (3)(c)(i) may claim as a tax
841	843		413
842	844		credit under this Subsection (3) only the principal recovery portion of the lease
843	845		414
844	846		payments.
845	847		415
846	848		(iii) A claimant, estate, or trust described in Subsection (3)(c)(i) may claim a tax
847	849		416
848	850		credit under this Subsection (3) for a period that does not exceed seven taxable
849	851		417
850	852		years after the day on which the lease begins, as stated in the lease agreement.
851	853		418
852	854		(4)(a) Subject to the other provisions of this Subsection (4), a claimant, estate, or trust
853	855		419
854	856		may claim a refundable tax credit under this Subsection (4) with respect to a
855	857		420
856	858		commercial energy system if:
857	859		421
858	860		(i) the commercial energy system uses wind, geothermal electricity, or biomass
859	861		422
860	862		equipment capable of producing a total of 660 or more kilowatts of electricity;
861	863		423
862	864		(ii)(A) the commercial energy system supplies all or part of the energy required by
863	865		424
864	866		commercial units owned or used by the claimant, estate, or trust; or
865	867		425
866	868		(B) the claimant, estate, or trust sells all or part of the energy produced by the
867	869		426
868	870		commercial energy system as a commercial enterprise;
869	871		427
870	872		(iii) for a commercial energy system using wind, the system includes adequate energy
871	873		428
872	874		storage;
873	875		429
874	876		[(iii)] (iv) the claimant, estate, or trust has not claimed and will not claim a tax credit
875	877		430
876	878		under Subsection (6) for hydrogen production using electricity for which the
877	879		431
878	880		claimant, estate, or trust claims a tax credit under this Subsection (4); and
879	881		432
880	882		[(iv)] (v) the claimant, estate, or trust obtains a written certification from the office in
881	883		433
882	884		accordance with Subsection (7).
883	885		434
884	886		(b)(i) Subject to Subsection (4)(b)(ii), a tax credit under this Subsection (4) is equal
885	887		435
886	888		to the product of:
887	889		436
888	890		(A) 0.35 cents; and
889		-	- 13 - S.B. 192 Enrolled Copy
890	891		437
891	892		(B) the kilowatt hours of electricity produced and used or sold during the taxable
	893	+	- 13 - 5th Sub. (Gray) S.B. 192 02-12 17:20
892	894		438
893	895		year.
894	896		439
895	897		(ii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
896	898		440
897	899		(4) for production occurring during a period of 48 months beginning with the
898	900		441
899	901		month in which the commercial energy system is placed in commercial service.
900	902		442
901	903		(c) For purposes of calculating the tax credit under this Subsection (4), electricity that is
902	904		443
903	905		stored and later sold may only be counted at the time the electricity is sold from
904	906		444
905	907		storage.
906	908		445
907	909		[(c)] (d) A claimant, estate, or trust that is a lessee of a commercial energy system
908	910		446
909	911		installed on a commercial unit may claim a tax credit under this Subsection (4) if the
910	912		447
911	913		claimant, estate, or trust confirms that the lessor irrevocably elects not to claim the
912	914		448
913	915		tax credit.
914	916		449
915	917		(e) Notwithstanding Subsection (4)(a)(iii), a commercial energy system is exempt from
916	918		450
917	919		the energy storage requirement if the system had a position in an interconnection
918	920		451
919	921		queue or a signed agreement with a transmission provider before January 1, 2025.
920	922		452
921	923		(5)(a) Subject to the other provisions of this Subsection (5), a claimant, estate, or trust
922	924		453
923	925		may claim a refundable tax credit as provided in this Subsection (5) if:
924	926		454
925	927		(i) the claimant, estate, or trust owns a commercial energy system that:
926	928		455
927	929		(A) uses solar equipment capable of producing a total of 660 or more kilowatts of
928	930		456
929	931		electricity; and
930	932		457
931	933		(B) includes adequate energy storage;
932	934		458
933	935		(ii)(A) the commercial energy system supplies all or part of the energy required by
934	936		459
935	937		commercial units owned or used by the claimant, estate, or trust; or
936	938		460
937	939		(B) the claimant, estate, or trust sells all or part of the energy produced by the
938	940		461
939	941		commercial energy system as a commercial enterprise;
940	942		462
941	943		(iii) the claimant, estate, or trust does not claim a tax credit under Subsection (3);
942	944		463
943	945		(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under
944	946		464
945	947		Subsection (6) for hydrogen production using electricity for which a taxpayer
946	948		465
947	949		claims a tax credit under this Subsection (5); and
948	950		466
949	951		(v) the claimant, estate, or trust obtains a written certification from the office in
950	952		467
951	953		accordance with Subsection (7).
952	954		468
953	955		(b)(i) Subject to Subsection (5)(b)(ii), a tax credit under this Subsection (5) is equal
954	956		469
955	957		to the product of:
956	958		470
957	959		(A) 0.35 cents; and
958		-	- 14 - Enrolled Copy S.B. 192
959	960		471
960	961		(B) the kilowatt hours of electricity produced and used or sold during the taxable
	962	+	- 14 - 02-12 17:20 5th Sub. (Gray) S.B. 192
961	963		472
962	964		year.
963	965		473
964	966		(ii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
965	967		474
966	968		(5) for production occurring during a period of 48 months beginning with the
967	969		475
968	970		month in which the commercial energy system is placed in commercial service.
969	971		476
970	972		(c) For purposes of calculating the tax credit under this Subsection (5), electricity that is
971	973		477
972	974		stored and later sold may only be counted at the time the electricity is sold from
973	975		478
974	976		storage.
975	977		479
976	978		(d) A claimant, estate, or trust that is a lessee of a commercial energy system installed on
977	979		480
978	980		a commercial unit may claim a tax credit under this Subsection (5) if the claimant,
979	981		481
980	982		estate, or trust confirms that the lessor irrevocably elects not to claim the tax credit.
981	983		482
982	984		(e) Notwithstanding Subsection (5)(a)(i)(B), a commercial energy system is exempt
983	985		483
984	986		from the energy storage requirement if the system had a position in an
985	987		484
986	988		interconnection queue or a signed agreement with a transmission provider before
987	989		485
988	990		January 1, 2025.
989	991		486
990	992		(6)(a) A claimant, estate, or trust may claim a refundable tax credit as provided in this
991	993		487
992	994		Subsection (6) if:
993	995		488
994	996		(i) the claimant, estate, or trust owns a hydrogen production system;
995	997		489
996	998		(ii) the hydrogen production system is completed and placed in service on or after
997	999		490
998	1000		January 1, 2022;
999	1001		491
1000	1002		(iii) the claimant, estate, or trust sells as a commercial enterprise, or supplies for the
1001	1003		492
1002	1004		claimant's, estate's, or trust's own use in commercial units, the hydrogen produced
1003	1005		493
1004	1006		from the hydrogen production system;
1005	1007		494
1006	1008		(iv) the claimant, estate, or trust has not claimed and will not claim a tax credit under
1007	1009		495
1008	1010		Subsection (3), (4), or (5) for electricity used to meet the requirements of this
1009	1011		496
1010	1012		Subsection (6); and
1011	1013		497
1012	1014		(v) the claimant, estate, or trust obtains a written certification from the office in
1013	1015		498
1014	1016		accordance with Subsection (7).
1015	1017		499
1016	1018		(b)(i) Subject to Subsections (6)(b)(ii) and (iii), a tax credit under this Subsection (6)
1017	1019		500
1018	1020		is equal to the product of:
1019	1021		501
1020	1022		(A) $0.12; and
1021	1023		502
1022	1024		(B) the number of kilograms of hydrogen produced during the taxable year.
1023	1025		503
1024	1026		(ii) A claimant, estate, or trust may not receive a tax credit under this Subsection (6)
1025	1027		504
1026	1028		for more than 5,600 metric tons of hydrogen per taxable year.
1027		-	- 15 - S.B. 192 Enrolled Copy
1028	1029		505
1029	1030		(iii) A claimant, estate, or trust is eligible to claim a tax credit under this Subsection
	1031	+	- 15 - 5th Sub. (Gray) S.B. 192 02-12 17:20
1030	1032		506
1031	1033		(6) for production occurring during a period of 48 months beginning with the
1032	1034		507
1033	1035		month in which the hydrogen production system is placed in commercial service.
1034	1036		508
1035	1037		(7)(a) Before a claimant, estate, or trust may claim a tax credit under this section, the
1036	1038		509
1037	1039		claimant, estate, or trust shall obtain a written certification from the office.
1038	1040		510
1039	1041		(b) The office shall issue a claimant, estate, or trust a written certification if the office
1040	1042		511
1041	1043		determines that:
1042	1044		512
1043	1045		(i) the claimant, estate, or trust meets the requirements of this section to receive a tax
1044	1046		513
1045	1047		credit; and
1046	1048		514
1047	1049		(ii) the commercial energy system or the hydrogen production system with respect to
1048	1050		515
1049	1051		which the claimant, estate, or trust seeks to claim a tax credit:
1050	1052		516
1051	1053		(A) has been completely installed;
1052	1054		517
1053	1055		(B) is a viable system for saving or producing energy from clean resources; and
1054	1056		518
1055	1057		(C) is safe, reliable, efficient, and technically feasible to ensure that the
1056	1058		519
1057	1059		commercial energy system or the hydrogen production system uses the state's
1058	1060		520
1059	1061		clean and nonrenewable resources in an appropriate and economic manner.
1060	1062		521
1061	1063		(c) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1062	1064		522
1063	1065		office may make rules:
1064	1066		523
1065	1067		(i) for determining whether a commercial energy system or a hydrogen production
1066	1068		524
1067	1069		system meets the requirements of Subsection (7)(b)(ii); and
1068	1070		525
1069	1071		(ii) for purposes of a tax credit under Subsection (3), establishing the reasonable costs
1070	1072		526
1071	1073		of a commercial energy system, as an amount per unit of energy production.
1072	1074		527
1073	1075		(d) A claimant, estate, or trust that obtains a written certification from the office shall
1074	1076		528
1075	1077		retain the certification for the same time period a person is required to keep books
1076	1078		529
1077	1079		and records under Section 59-1-1406.
1078	1080		530
1079	1081		(e) The office shall submit to the commission an electronic list that includes:
1080	1082		531
1081	1083		(i) the name and identifying information of each claimant, estate, or trust to which the
1082	1084		532
1083	1085		office issues a written certification; and
1084	1086		533
1085	1087		(ii) for each claimant, estate, or trust:
1086	1088		534
1087	1089		(A) the amount of the tax credit listed on the written certification; and
1088	1090		535
1089	1091		(B) the date the commercial energy system or the hydrogen production system
1090	1092		536
1091	1093		was installed.
1092	1094		537
1093	1095		(8) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
1094	1096		538
1095	1097		commission may make rules to address the certification of a tax credit under this section.
1096		-	- 16 - Enrolled Copy S.B. 192
1097	1098		539
1098	1099		(9) A tax credit under this section is in addition to any tax credits provided under the laws
	1100	+	- 16 - 02-12 17:20 5th Sub. (Gray) S.B. 192
1099	1101		540
1100	1102		or rules and regulations of the United States.
1101	1103		541
1102	1104		(10) A purchaser of one or more solar units that claims a tax credit under Section
1103	1105		542
1104	1106		59-10-1024 for the purchase of the one or more solar units may not claim a tax credit
1105	1107		543
1106	1108		under this section for that purchase.
1107	1109		544
1108	1110		(11) A claimant, estate, or trust may not claim or carry forward a tax credit described in this
1109	1111		545
1110	1112		section in a taxable year during which the claimant, estate, or trust claims or carries
1111	1113		546
1112	1114		forward a tax credit under Section 59-10-1029.
1113	1115		547
1114	1116		Section 3. Effective Date.
1115	1117		548
1116	1118		This bill takes effect for a taxable year beginning on or after January 1, 2026.
1117	1119		- 17 -