Solar Tax Credits in Utah: Everything You Need to Know in 2024

In recent years, Utah has seen a significant rise in the adoption of solar energy. That's because Utah offers some of the best tax incentives in the country for homeowners looking to invest in solar power.

Since solar energy has become such a popular choice in our state, we've created a comprehensive guide containing everything you need to know about Utah's solar power incentives. 

Key Points

  • The Federal Renewable Energy Investment Tax Credit (ITC) offers a 30% tax credit on all solar and battery system installation costs (including installation) with no value cap.
  • Utah offers additional solar tax credits, including a Commercial Solar Tax Credit for businesses.
  • Torus offers reliable solar solutions for residential and commercial properties in Utah.

Understanding Solar Tax Credits

Tax credits are essentially discounts on your income taxes. The government provides solar tax credits (also known as solar incentives) to encourage you to invest in renewable energy sources. Basically, if you switch to solar energy, the government will help pay for your new system if you claim it as a credit.

The Renewable Energy Investment Tax Credit (ITC) is the biggest federal incentive for solar energy. This major incentive allows you to deduct up to 30% of the cost of a new solar energy system from your federal taxes and has no cap on its value.

In 2024 and beyond, the Renewable Energy Investment Tax Credit even covers systems that include battery storage, allowing you to reduce the cost of power backup and other important features.

Utah's Solar Tax Credits Landscape

In addition to the federal ITC, Utah has its own set of solar tax credits, adding up to even more savings for those who decide to go green. Here's what you need to know about Utah's current solar power incentives:

Utah Commercial Solar Tax Credit

Targeted toward Utah's business owners, this credit allows for a 10% tax credit, up to $50,000 per year, for solar systems installed and used in Utah.

2024 Updates in Utah's Solar Tax Credit Policies

It's important to note that Utah’s solar power incentive for residential systems has already decreased from its previous cap of $1600. 2023 saw a decrease to $400, and in 2024, the credit expires completely.

Application Process for Solar Tax Credits in Utah

To claim your Utah solar power incentives, you'll need to complete form TC-40 and attach the required documentation, including proof of purchase and installation of your solar system.

For a smooth application process, follow these best practices:

  1. Keep track of all receipts and documentation for your solar system purchase and installation.
  2. Wait until the end of the year to submit your application, as tax credits cannot be claimed in advance.
  3. Consult with a licensed tax professional or accountant to ensure you are accurately claiming all available credits.

If you're taking advantage of multiple credits, it's important to note that they cannot exceed the total amount of taxes owed for the year. Any excess credits can be carried over to subsequent years.

The Benefits of Using Solar Tax Credits

So, who benefits from Utah's solar power incentives? The answer is—Everyone!

  • Utah Residents: Financial advantages are one of the primary reasons for investing in solar power, which makes it an attractive option for homeowners and businesses alike.
  • The State of Utah: By incentivizing residents to invest in renewable energy sources, the state can reduce its reliance on traditional, non-renewable energy sources that contribute to pollution and climate change.
  • The Economy: The long-term economic benefits include reduced energy costs, increased job opportunities in the solar industry, and overall economic growth for the state.

The Environment: Solar power produces clean, renewable energy with no carbon emissions, which helps to reduce air pollution and combat the effects of climate change.

Take Advantage of this Opportunity With Solar Energy From Torus

Now that you understand how Utah's solar power incentives work, it's time to take advantage of these incentives and make the switch to clean, renewable energy. At Torus, we offer reliable solar solutions for residential and commercial properties throughout Utah. 

Start your renewable clean energy journey today by ordering now. For any additional questions, schedule a free consultation with us.