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Energy:
Tax Credits for Alternate Power Generation

Our Position: support
Bill Number: sb13s3
Sponsor: Sen Howard Stephenson (R-Draper)
Legislative Session: 2007 General Session

Status

This legislation revives the tax credit for renewable energy systems.  It includes wind, solar, geothermal, hydroelectric and biomass.  In house committee on Feb 19th, the individual income tax credit for residential systems was replaced with a sales tax refund of up to $2,000.

The business tax credit for commercial systems will now be calculated based on electrical output of the system over the first 4 years of operation.  The business credits may be taken over a maximum of 4 years if the taxable amount owed in any one year is less than the amount of the credit.

The new version (SB13S3) directs the Tax Review Commission to study the credit's effectiveness before the expiration in 2012 and every five years afterward, if it's extended. 

Action Needed

The substitute bill passed the senate on February 5th.   On Monday, Feb 19th, the House Revenue and Taxation Committee substituted a new version of the legislation; it's now Third Substitute Senate Bill 13.  At Sen Stephenson's request, the committee changed the residential income tax credit to a sales tax refund of up to $2,000.

Because this change alters the fiscal impact, a new fiscal note is being prepared.  We've now passed the time when standing committees meet so this bill will have to be sent by rules to the house floor.  If it passes the house this session, it will need to return to the senate for a quick vote on the house amendments.  It will need support on the house side--especially from members of the rules committee--to get this bill past all the hurdles.

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