UtahH.B. 2642025 General SessionHouseWALLET

Tax Incentives Amendments

Sponsored By: Kay J. Christofferson (Republican)

Signed by Governor

EnergyRenewable and Clean EnergyCorporate TaxIncome TaxState Tax CommissionRevenue and TaxationIndividual Income TaxTax CreditsOffice of Energy Development

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 4 costs, 0 mixed.

Home energy credits face installation deadline

Utah’s residential energy tax credit requires systems to be completed and placed in service before January 1, 2028. Systems finished or placed in service on or after that date do not qualify. The deadline covers individual taxpayers, estates, and trusts. The law took effect May 7, 2025, and applies to tax years beginning January 1, 2025, or later.

Qualifying solar project tax credit repealed

The law repealed Utah’s separate nonrefundable tax credit for qualifying solar projects, effective May 7, 2025. Taxpayers can no longer claim that credit under the repealed provision. This repeal is separate from the deadline for residential energy credits.

Alternative energy development tax credits repealed

The law repealed Utah’s nonrefundable alternative energy development tax credits, effective May 7, 2025. The repeal covers both the corporate and individual income tax versions. Eligible energy developers can no longer claim these credits under the repealed provisions.

Business energy credits face installation deadline

Utah businesses face a January 1, 2028, cutoff for qualifying energy systems. Systems must be completed and placed in service before that date. This applies to corporate energy credits and commercial energy or hydrogen credits claimed by individuals, estates, and trusts. The law took effect May 7, 2025, and applies to tax years beginning January 1, 2025, or later.

Sponsors & Cosponsors

Sponsor

Kay J. Christofferson
Republican • House

Cosponsors

Brady Brammer
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 174 • No: 40

House vote • 2/24/2025

House/ concurs with Senate amendment

Yes: 59 • No: 13

Senate vote • 2/21/2025

Senate/ passed 3rd reading

Yes: 16 • No: 7

Senate vote • 2/20/2025

Senate/ floor amendment

Yes: 0 • No: 0

Senate vote • 2/20/2025

Senate/ passed 2nd reading

Yes: 16 • No: 8

Senate vote • 2/18/2025

Senate Comm - Favorable Recommendation

Yes: 4 • No: 1

House vote • 2/10/2025

House/ passed 3rd reading

Yes: 62 • No: 10

House vote • 1/30/2025

House Comm - Substitute Recommendation

Yes: 9 • No: 0

House vote • 1/30/2025

House Comm - Favorable Recommendation

Yes: 8 • No: 1

Senate vote • Unknown