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Combined Heat and Power Partnership

Renewable Energy Sales Tax Exemption

Date Last Updated11/16/2012
Incentive TypeTax
State/FederalUT
Incentive Administrator/Contact OfficeUtah State Tax Commission
Incentive Initiation Date7/1/2004
Incentive Expiration Date6/30/2019
Incentive Size and Funding SourceUtah exempts the purchase or lease of equipment used to generate electricity from renewable resources from the state sales tax.
Eligible RecipientOwners and lessees of equipment used to generate electricity from renewable resources. Purchases or leases must be made for or by a renewable energy production facility on or after July 1, 2004, and before June 30, 2019. All leases must be made for at least 7 years.
Eligible FuelLandfill Gas; Woody Biomass; Biogas; Other
Eligible Project Size (MW)>20 MW
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaEquipment eligible for the exemption generally includes generating equipment, control and monitoring systems, power lines, substation equipment, lighting, fencing, pipes, and other equipment for locating power lines and poles. Equipment not eligible for the exemption includes tools and other equipment used in construction of a new facility, contracted services required for construction, and routine maintenance activities and equipment utilized or acquired after the project is operational.

An existing facility that is expanded by one or more megawatt (MW) as a result of the machinery or equipment may also be eligible for the exemption.
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