Utah Alternative Energy Development Act

Effective generally 05/08/2012 and as noted, SB 65 repeals the Alternative Energy Development Act, which created renewable energy development zone tax credits, and enacts the Alternative Energy Development Tax Credit Act and Alternative Energy Manufacturing Tax Credit Act providing alternative energy entities a nonrefundable alternative energy development tax credit and a nonrefundable alternative energy manufacturing tax credit, respectively. The credit under either program is in the amount listed on a tax credit certificate issued by the Governor's Office of Economic Development and cannot exceed 100% of new state revenues expected to be generated by the activity by the applicant. Either credit may be carried forward for a period that does not exceed the next seven taxable years. “Alternative energy entity” means a person that conducts business within Utah and enters into an agreement with the Governor's Office of Economic Development that qualifies the person to receive the tax credit. An alternative energy entity includes pass-through entities. “Alternative energy” means biomass energy, geothermal energy, hydroelectric energy, solar energy, wind energy, or energy that is derived from coal-to fuels, nuclear fuel, oil-impregnated diatomaceous earth, oil sands, oil shale, or petroleum coke. “Alternative energy manufacturing project” means a project produced by an alternative energy entity if the project involves a new or expanding operation in Utah of a new or expanding alternative energy entity and the manufacturing of machinery or equipment used directly in the production of alternative energy. The new credits are effective retroactive to taxable years beginning on or after January 1, 2012.