Utah is a leader in renewable energy development. The state’s Renewable Energy Systems Tax Credit (RESTC) program makes it more affordable for Utah homeowners and businesses to invest in solar, backup batteries, and other renewable energy sources.
The RESTC is a tax credit of up to 25% of the cost of residential solar systems purchased for a primary residence. This incentive program helps reduce the upfront cost associated with installing renewable energy systems by providing businesses and homeowners with a tax credit when they file their taxes. Additionally, this program provides an incentive for Utahns to invest in more sustainable forms of energy production, which provide local jobs as well as cleaner air for all residents.
Benefits of the Utah Solar Tax Credit
The Utah Renewable Energy Systems Tax Credit (RESTC) is an important opportunity for those interested in renewable energy. The credit is aimed at helping individuals and businesses reduce the cost of installing renewable energy systems in their homes or businesses. This tax credit can significantly reduce the upfront costs associated with renewable energy installations.
The RESTC provides a state income tax credit for the purchase and installation of qualified solar photovoltaic (PV) systems and qualified wind turbines. Additionally, there is no cap on the number of eligible homeowners that qualify for this tax credit. These credits can be used over multiple taxable years if needed to maximize savings from the program.
The first criterion is that applicants must install a qualifying renewable energy system at their residence located in Utah. Additionally, must be installed before December 31, 2024. Furthermore, applications will only be accepted if they are received within one year of the completion of installation.
How much can you claim for the Utah Solar Tax Credit?
The state of Utah is encouraging the use of renewable energy with their Renewable Energy Systems Tax Credit (RESTC). Homeowners, businesses and nonprofit organizations can receive a tax credit for up to 25 percent of the cost associated with installing certain renewable energy systems. This can be an effective way for individuals to reduce their expenses while simultaneously reducing their carbon footprint.
The amount of the RESTC credit varies depending on whether it’s residential or non-residential, as well as the type of system being installed. For residential properties, solar energy systems are eligible for a tax credit of up to 25% or $400 in 2023 — whichever is less. Non-residential properties qualify for larger credits — up to $50,000 or 10% of the total cost — whichever is less.
Utah Solar Tax Credit Application Process
Claiming your Utah Solar Tax Credit is a fairly straightforward and simple process. In only takes a few minutes to complete, and once you’re done, you can hand your paperwork to your tax accountant.
- Install a Solar Power system on your residential or commercial property.
- Create an account with the Governor’s Office of Energy Development.
- Complete your solar application
- Receive your TC-40E
- Claim the Renewable Residential Energy System credit when you file your taxes.
- Save your TC-40E in case you get audited.
Impact of Utah RESTC
As the demand for renewable energy sources continues to increase, Utah is leading the way. The Renewable Energy Systems Tax Credit (RESTC) program, established in 2005 by the Utah State Legislature, has provided unparalleled incentives for both individuals and businesses to invest in clean energy technology. This tax credit has had a profoundly positive impact on the state’s economy, environment, and future.
Utah Solar Tax Credit Calculator
Fill out the form below to calculate your estimated solar tax credit. If you do not know how much it will cost to install a solar system on your house, give us a call, and we’d be happy to give you a free, no-obligation estimate.
In conclusion, the Utah Renewable Energy Systems Tax Credit (RESTC) is an effective tool for encouraging renewable energy use in the state of Utah. This tax credit provides incentives to individuals and businesses who invest in solar. With its focus on increasing renewable resources use while providing financial benefits, RESTC has proven itself a successful initiative with the positive potential to help us achieve our long term energy sustainability goals.