New credit system to incentivize renewable electricity projects to move to Utah
Dec 22, 2023, 2:00 PM | Updated: May 30, 2024, 8:34 am
Solar panels fuel a track equipped with power transfer coils embedded in the roadway, enabling properly equipped electric vehicles to charge while they’re in motion, at Utah State University's Engineering Research Center for Electrified Transportation in North Logan on Thursday, Aug. 6, 2020. (Jeffrey D. Allred)
(Jeffrey D. Allred)
SALT LAKE CITY — Utah has an incentive — called a Production Tax Credit system — to bring more solar-power farms and other renewable electricity projects to the state.
Chris Reisinger with the Utah Office of Energy Development explained to KSL NewsRadio how PTC works.
“It [the PCT] is used to bring down an entity’s or taxpayers’ liability. So they have to pay taxes in the first place, then they can use this credit to bring down their liability,” he said.
This tax credit can be used for any large-scale solar-power farms, wind farms and other renewable electricity projects.
Reisinger said the credit helps bring a lot of renewable energy projects to the state.
“The Production Tax Credit is one of our more successful programs when it comes to applicants for alternative-energy generation,” Reisinger said. “We’ve actually heard firsthand from a lot of folks that it is very attractive when they’re considering other states [to operate in].”
The credit is based on the amount of energy produced. The program provides $0.35 per kilowatt hour for any electricity produced during the first four years of operation. So, the more energy a project produces, the more credit it will receive that can be used toward its tax liability.
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