SB 192: Commercial Wind and Solar Incentives Amendments - Utah

Substitute #5 → Enrolled · 4 edits · Mar 26, 2025

MODERATE

This bill updates Utah's commercial wind and solar tax credit laws to require large systems (660+ kilowatts) to include energy storage to qualify for incentives, with a grandfather clause for projects queued before January 1, 2025. It also clarifies definitions for various energy systems and extends the bill's effective date to the 2026 tax year.

Scope change

The bill's scope now explicitly requires energy storage for large-scale commercial wind and solar projects to receive tax credits, while maintaining eligibility for systems that were already queued for connection before the new deadline.

REQUIREMENT

Systems of 660 or more kilowatts must include adequate energy storage to qualify for tax credits, unless they had a position in an interconnection queue or signed agreement before January 1, 2025.

TIMELINE

The effective date for the new requirements was changed to apply to taxable years beginning on or after January 1, 2026.

DEFINITION

Definitions for terms like 'commercial energy system' and 'adequate energy storage' were updated and cross-referenced to ensure consistency across related tax code sections.

TECHNICAL

Minor formatting corrections were made to section numbering and text alignment throughout the bill.

Introduced → Substitute #1 · 4 edits

MODERATE

This bill amends Utah's tax credit laws for commercial wind and solar energy systems, primarily by changing the required battery storage duration from 12 hours to 6 hours and updating the definition of energy storage to 'adequate energy storage' rather than 'adequate battery storage.' It also standardizes terminology across related tax sections to refer to 'energy storage' instead of specifically 'battery storage.'

Scope change

The scope of the bill remains focused on commercial wind and solar energy systems, but the eligibility criteria for receiving tax credits have been relaxed regarding the specific duration of required energy storage.

REQUIREMENT

The requirement for commercial wind and solar systems to qualify for tax credits was changed from needing 12 hours of battery storage to needing only 6 hours of energy storage.

DEFINITION

The definition of storage requirements was updated from 'adequate battery storage' to 'adequate energy storage' in both the primary tax code section and the related individual income tax section.

TECHNICAL

Minor formatting and numbering inconsistencies in the definitions section were corrected to align the text structure.

TIMELINE

The bill's effective date was updated from February 29, 2025, to January 31, 2025, based on the amendment timestamp.

Substitute #4 → Substitute #5 · 4 edits

MODERATE

This bill amends Utah's commercial wind and solar tax credit laws to require energy storage systems for larger projects (660+ kilowatts) to qualify for credits, while adding technical corrections and clarifying definitions for various clean energy systems.

Scope change

The bill maintains the same scope of applicability to commercial energy systems but adds new eligibility requirements for larger wind and solar projects.

REQUIREMENT

Commercial wind and solar energy systems of 660 or more kilowatts must now include energy storage systems to qualify for tax credits, unless they have a pre-existing interconnection queue position and signed agreement before May 7, 2025.

DEFINITION

Updated and renumbered definitions for various clean energy systems (biomass, geothermal, hydroenergy, hydrogen production) to ensure consistency across related tax credit sections.

TECHNICAL

Corrected formatting errors and renumbered subsections in the definitions section to improve clarity and organization of the tax credit statute.

TIMELINE

Established a special effective date of January 1, 2026, for the new requirements, giving stakeholders time to adjust their projects accordingly.

Substitute #3 → Substitute #4 · 5 edits

MODERATE

This bill amends Utah's commercial wind and solar tax credit laws to require energy storage systems for larger installations and clarifies definitions for various clean energy technologies. The changes ensure that commercial wind and solar systems of 660 kilowatts or more must include adequate energy storage to qualify for tax credits, promoting grid reliability and renewable energy dispatchability.

Scope change

The bill expands the scope of clean energy systems covered by tax credits to explicitly include hydrogen production systems and clarifies the definition of 'commercial unit' for agricultural water pumping and wind systems.

REQUIREMENT

Requires commercial wind and solar energy systems of 660 or more kilowatts to include energy storage systems to qualify for tax credits.

DEFINITION

Adds new definition for 'Interconnection queue' to clarify how projects connect to the electrical grid.

Updates definitions to align commercial energy system terminology between Section 59-7-614 and Section 59-10-1106.

ELIGIBILITY

Clarifies that individual energy generating devices for agricultural water pumping or wind systems are each considered separate commercial units for tax credit purposes.

TECHNICAL

Reorganizes and renumbers subsections for better clarity and consistency across both amended code sections.

Substitute #2 → Substitute #3 · 5 edits

MODERATE

This bill updates Utah's commercial wind and solar tax credit requirements, primarily by clarifying definitions and adding a storage requirement for larger systems. The main substantive change is redefining 'adequate energy storage' to require systems to provide at least six hours of a facility's expected peak daily generation, rather than just six hours of nameplate capacity. This change affects which commercial energy systems qualify for tax credits when they produce 660 kilowatts or more of electricity.

Scope change

The bill's scope remains focused on commercial wind and solar energy systems, but the eligibility criteria for tax credits have been modified to require energy storage systems for facilities of 660 kilowatts or more.

REQUIREMENT

Changed the energy storage requirement for commercial wind and solar systems of 660+ kilowatts from '6 hours of nameplate capacity' to '6 hours of expected peak daily generation'.

DEFINITION

Updated the definition of 'commercial unit' to clarify that individual energy generating devices are considered commercial units for agricultural water pumping or wind systems.

Added clarifying language to the definition of 'commercial enterprise' to explicitly include hydrogen production systems.

TECHNICAL

Reorganized and renumbered subsections in the definitions section to improve clarity and consistency.

Updated the House Sponsor name from 'LONG TITLE' to 'Carl R. Albrecht' in the bill header.

Substitute #1 → Substitute #2 · 4 edits

MODERATE

This bill amends Utah's commercial wind and solar tax credit laws to require energy storage systems for larger installations (660+ kilowatts) to qualify for credits, while also making technical corrections to definitions and formatting. The changes clarify eligibility requirements and ensure consistency across related tax code sections.

Scope change

The bill's scope remains focused on commercial wind and solar energy systems, but eligibility criteria are tightened for larger systems requiring energy storage.

REQUIREMENT

Commercial wind and solar energy systems of 660 or more kilowatts must include adequate energy storage systems to qualify for tax credits.

DEFINITION

Technical corrections were made to renumber and reorganize definitions in the tax credit sections for clarity and consistency.

TECHNICAL

Formatting and numbering errors in the original text were corrected to improve readability and legal clarity.

TIMELINE

The bill specifies an effective date of May 7, 2025, providing a clear implementation timeline for the new requirements.

Commercial Wind and Solar Incentives Amendments

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