This article was originally published on August 21, 2017. It has been updated for 2017 tax forms.
Utah is one of several states that values renewable energy and encourages residents to invest in solar for their homes. People who switch to renewable energy lessen their dependency on coal, fossil fuels, and other limited natural resources while they lessen their own costs for power.
Utahns have a unique opportunity to take advantage of tax savings that Utah offers residents each year. These tax credits help lower your tax burden and allow you to enjoy the maximum monetary benefits of your solar energy system.
Utah offers its renewable energy systems tax credits to homeowners and commercial property, but we will talk about the residential portion which is the Investment Tax Credit, or ITC.
The ITC can be applied to solar photovoltaic and solar thermal systems as well as other types of renewable energy setups. The residential tax credit from the ITC is non-refundable and calculated at 25 percent of the eligible cost of the system or $2000, whichever amount is less.
You can find out more about the state's renewable energy systems tax credit by visiting the Governor's Office of Energy Development website.
Helpful Hints for Filing for the Utah State Solar Power Tax Credit
The process to claim the Utah renewable energy tax credit is actually relatively simple. It involves filling out and submitting the state's TC-40 form with your state tax returns each year. Fill out TC-40a and TC-40e (online or from the Governor's Office) to request the incentive for your solar power system in your home.
Filing Your TC-40a
Fill out part 4 of TC-40a, start by writing in the number 21 under the “Code” column, which itself is located in Part 4 – Nonapportionable Nonrefundable Credits. The number 21 corresponds with the credit for Renewable residential energy credits.
Next, under the Amounts column, write in $2000. This amount is the maximum that you can get for a solar power system sold and installed by any of the solar power companies including Blue Raven Solar in Utah. All of the systems provided by Blue Raven Solar qualify for the maximum credit.
Continue to fill out the rest of the form as you normally would when you file your state tax returns. After you finish, you can then submit it with your state taxes. At the end of the form in Part 5, you total the refundable credits. That is the number you will enter on line 38 of your TC-40.
Keep a copy of this form for your own records. You should store your copy with the copy of that year's state tax returns in case you have questions or concerns about your renewable energy tax credits later.
Next, you need to fill out the TC-40e. You can complete this form electronically if you wish, but you can also print off the paper form and file it with your taxes if you prefer. We will review the online process here.
Filing Your TC-40e
Before filling out this section, you must first create an online account. As you set up your account, you should select the option for Solar Photovoltaic Applicants under the drop-down menu.
After you select that option, you will submit to register. It will verify your email, then when you click it will take you to the page to get started.
Once you have clicked to start the application, on the first page, select “My Name” and then provide the required information.
(Page 2) Select “Street Address” and continue to provide the necessary details.
(Page 4) Select “Yes” and then attach your countersigned net metering agreement. Your utility provider should have provided you with this documentation. If you do not have one on file, contact the provider and request one before you can complete this section of the TC-40 form and submit it with your state return.
(Page 5) Enter the amount on your final invoice as the “Eligible System Cost” and select “No” on the portion asking if the system has batteries.
On steps 6-11, If you are a Blue Raven customer, your system size or the number of panels and their rating can be found in a few places. Click here to review where you can find this info.
(Page 6) For question 6, put the system size in watts.
Question 7, enter the make and model of your panels.
Question 8, enter the make and model of your inverter.
Question 9, select “Yes.”
(Page 7) select “Yes” to all questions (10, 11, and 12).
(Page 8) Question 13, put the date your system was installed.
(Page 9) Question 14, upload your permit packet in the upload link provided.
Below question 14, select “Yes.” This will cause question 15 to appear and give you a link to upload the PDF with your installation pictures.
(Page 10) Check the box and click “Save and Submit Application.”
Within about 6 weeks, you will get a form back verifying this application. Keep this for your records. You do NOT need to have this certificate back before you claim your state tax credit. You can claim the credit while you are waiting for it to be processed.
As a Blue Raven Solar customer, you can get help filling out this form and also have questions or concerns addressed by contacting us at 855-205-2530 or firstname.lastname@example.org.
You can also get help and direction laying claim to the state's tax incentives for renewable energy by visiting the state governor's website for the Office of Energy Development. This website contains the forms and instructions you may need to refer to when filing your state tax returns and requesting credit for your home or business's renewable solar energy system.
Utah has joined the effort to foster the popularity and availability of solar power systems in homes and businesses across the country. It offers its own residents numerous tax incentives that help people recoup the costs for buying and installing solar power systems in their homes or commercial properties.
These credits are simple to claim by filling out the required paperwork and submitting these documents with your state tax returns. You can visit Blue Raven Solar online for more information about possible tax credits and other savings that make heating, cooling, and powering your home more environmentally friendly and cost efficient today.
Disclaimer: Please remember we are a solar company, not a tax company. We aren’t giving tax advice, but simply want to give you a bit of an idea of how your claim might work for your solar incentive. If you’re looking for tax advice, we’d recommend you consult a tax professional before you file.