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Alternative Energy Manufacturing Tax Credit (Utah)

Eligibility 
Commercial
Industrial
Savings Category 
Photovoltaics
Maximum Rebate 

Up to 100% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project or 20 years, whichever is less.

Program Info
Start Date 

05/12/2009

State 
Utah
Program Type 
Industry Recruitment/Support
Rebate Amount 

Determined on a case-by-case basis by the Governor's Office of Economic Development based on statutory guidelines and evaluation criteria.

Provider 
Utah Governor's Office of Economic Development

The Alternative Energy Development Incentive (AEDI) is a post-performance non-refundable tax credit for up to 100% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of a manufacturing project, or 20 years, whichever is less. The actual amount and duration of an incentive is determined by the Governor's Office of Economic Development (GOED) on a case-by-case basis.

Eligible projects include the manufacture of equipment that will utilize hydro, solar, biomass, geothermal, and wind energy to produce electricity. It also includes that manufacture of equipment that will help develop the following non-renewable energy sources: nuclear fuel, oil-impregnated diatomaceous earth, oil sands, oil shale, or petroleum coke. To qualify for an incentive, the project must generate new state revenue and new incremental jobs, and it also receive incentives from the local government.

To receive a tax credit, manufacturers must first apply to the GOED for a tax credit certificate and provide all the documents specified in Utah Code 63M-1-3104. receive a tax credit certificate to be eligible for this tax credit. If the GOED approves the application and issues a tax credit certificate, it will issue a duplicate copy to the state Tax Commission. The maintain eligibility for the tax credit, the project owners must:

* Annually file a report with the GOED showing the new state revenues generated by the alternative energy project during the taxable year for which they are seeking to receive a tax credit
* Submit to an audit for verification of a tax credit
* Provide the GOED with any information required by the GOED to certify the economic life of the alternative energy project, which may include a power purchase agreement, a lease, or a permit; and
* Retain records supporting a claim for a tax credit for at least four years

Background

[http://le.utah.gov/~2009/bills/hbillenr/hb0430.pdf HB 430], signed in March 2009, created a system for the Governor's Office of Economic Development (GOED), in collaboration with local governments, to provide incentives to renewable energy producers and manufacturers who locate their projects in Utah. Originally titled the Renewable Energy Development Incentive (REDI), the name was changed by [http://le.utah.gov/~2010/bills/sbillenr/sb0242.pdf SB 242] of 2010 to the Alternative Energy Development Incentive (AEDI). In addition to the name change, SB 242 expanded eligibility under the program to other forms of "alternative energy" including petroleum coke, shale oil, nuclear fuel, tar sands, and oil-impregnated diatomaceous earth. [http://le.utah.gov/~2012/bills/sbillenr/SB0065.pdf SB 65] of 2012 made numerous more changes to this credit. It removed a requirement that the project must be developed in a state-appointed "alternative energy zone", and designed a separate incentive for the development of alternative energy projects.