The Utah solar tax credit is unfortunately coming to an end soon.
Just like the federal solar investment tax credit (ITC), this state-level financial incentive for installing a home photovoltaic system is being phased out over the next few years. So that means you have to act quickly if you still hope to take advantage of it.
The Utah solar tax credit allows you to claim up to 25 percent of your total home PV system and installation costs or $2,000, whichever is greater. And you can claim this credit on more than one system, as long as each is used to power a home that you own.
But the only way to qualify for this impressive total is to get your photovoltaic system up and running by the end of the year. Solar installations completed after Dec. 31, 2017, aren’t eligible for the full $2,000.
Let’s say you miss the deadline. How much will your Utah ITC credit be? Basically, the amount drops by $400 per year.
So if you install your home PV system by the end of 2018, you’ll be able to claim a maximum of $1,600. Wait another year, and the Utah state credit amount falls further. Photovoltaic installations completed by Dec. 31, 2019, are eligible for just $1,200.
And on it goes. Install your solar energy system by the end of 2020, and you can claim up to $800. For home PV installations completed in 2021, the Utah state ITC is limited to $400.
As the policy stands, home solar energy systems installed after Dec. 31, 2021, will not be eligible for a Utah solar tax credit.
If you want to claim the maximum $2,000 Utah solar ITC, you’ll need to schedule your photovoltaic installation now. From start to finish, home PV projects can take a few months.
But qualifying for the credit isn’t the only reason to rush your photovoltaic project.
The Utah solar industry has been under fire before. Just last November, the Rocky Mountain Power utility company proposed billing changes for solar customers. Their new rates, demand charges and net metering fees would limit the financial benefits of switching to photovoltaic power.
The Utah Public Service Commission has suspended Rocky Mountain Power’s proposal, but that’s no guarantee the plan won’t be adopted, at least in some form. Install your home PV system now, and you may be eligible for grandfathered rates.
Are you ready to start planning your PV installation? The professional team at Intermountain Wind & Solar, the region’s leading home and business photovoltaic provider, can help you claim every available financial incentive, including the Utah solar tax credit. To schedule a free consultation, contact us today.
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