Utah bill would extend PV tax credit, retire net metering

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A bill to retire Utah’s net-metering statute on January 1, 2036, is advancing through the House, following passage by the Senate.* Additionally, this bill amends the state’s corporate and franchise income tax for renewable-energy systems by establishing a credit for PV systems. Specifically, S.B. 141 allows a credit of:

  • $1,600 for systems installed on or after January 1, 2018, but on or before December 31, 2020.
  • $1,200 for systems installed in CY 2021.
  • $800 for systems installed in CY 2022.
  • $400 for systems installed in CY 2023.

This bill also amends Utah’s non-refundable individual income tax credit for renewable-energy systems by extending by two years the deadlines for the phasing out of the credit for residential PV systems. Specifically, it allows a credit of:

  • $1,600 for systems installed on or after January 1, 2018, but on or before December 31, 2020.
  • $1,200 for systems installed in CY 2021.
  • $800 for systems installed in CY 2022.
  • $400 for systems installed in CY 2023.

SB 141 has retroactive operation for a taxable year beginning after December 31, 2017.

* Under a multi-party stakeholder settlement approved by the PSC in September 2017, existing net metering customers were grandfathered through December 31, 2035. That settlement also established a “Transition Program” to replace net metering in the near term.