Taxes can be fun!!! When Uncle Sam is paying YOU that is!
In this article we will look at the FAQ’s to better understand how the non-refundable Utah State Tax Credit works.
HOW MUCH CAN I CLAIM?
The Utah Renewable Energy Tax Credit is 25% of the total cost of your system BUT has a max amount of $2,000 per residential home. If you are a landlord and install multiple renewable energy systems on separate, unique addresses, you can claim a non-refundable residential tax credit for each system.
WHAT DO “TOTAL COSTS” INCLUDE?
Total cost includes all expenses incurred from the solar installation. Panels, inverters, racking, electrical equipment, labor, permits and other city fees are all included. You can even include part of re-roofing costs if you it was done to prep for your solar installation.
WHAT EXACTLY IS A NON-REFUNDABLE TAX CREDIT?
Non-Refundable means that it can only be claimed against taxes owed to the state of Utah. If you do not have a state tax liability of $2,000 in a year you can claim this tax credit over a 4 year period.
EXAMPLES OF RECEIVING YOUR TAX CREDIT
If you have a State of Utah tax liability of $2,000, and you receive a Renewable Energy Systems Tax Credit for $2,000, then the tax credit of $2,000 will reduce your tax liability to $0
If you have a tax liability of $3,500 and you receive a Renewable Energy Systems Tax Credit for $2,000, then your Stat of Utah tax liability will be $1,500.
If you have a tax liability of $1,200 and you receive a Renewable Energy Systems Tax Credit for $2,000, then your Stat of Utah tax liability will be $0 and the remaining Renewable Energy Systems Tax Credit of $800 will roll forward to the next year. You will use the remaining tax credit of $800 in the next tax year.
HOW LONG WILL THESE CREDITS LAST?
The Utah tax rebate will slowly be phased out until the year 2021. Here is what the caps, or max payout, look like each year:
- 2016 – $2,000
- 2017 – $2,000
- 2018 – $1,600
- 2019 – $1,200
- 2020 – $800
- 2021 – $400
WHAT’S THE BEST WAY TO GO ABOUT THIS?
First we want to remind you that here at Mynt Solar we are not CPA’s. We always recommend you speak with your own CPA as everyone’s tax liability is unique. But we do believe, without doubt, the best way to go about installing the best solar panels that will give you the best return on your investment and also qualify you for both the state and federal rebates is to choose Mynt Solar to serve you. We do our very best to take the complicated steps of getting the installation and claiming your tax credit as simple as possible for you. Step one is to see if solar is right for you by filling out the form next to this article —————–>