Businesses in Utah transitioning into solar power for their electricity needs can avail of many incentives. Ask your contractor how to start the process.
Here’s a look at the available incentives for businesses utilizing solar systems:
ITC or Business Energy Investment Tax Credit
This federal incentive is available for agricultural, cooperative, investor-owned, industrial, and commercial utilities. It has no cap.
It includes renewable forms of energy, such as solar photovoltaics, solar thermal process heat, solar thermal electric, solar space heat, and solar water heat.
The incentive started cutting down installation costs in 2020 by up to 26 percent. The percentage gets lower through the years. It’s at 21 percent at the start of 2022.
Sales Tax Exemption
You can avail of this tax exemption when you lease or purchase equipment that utilizes alternative energy sources in generating electricity. The leases come with a clause of a minimum of seven years. All leases or purchases must be made before June 30, 2027.
More about the Financing Options Available for Businesses
Here are some of the financing options you can look into when availing or leasing solar power utilities in Utah:
Salt Lake City Economic Development Loan Fund
Available for businesses in Salt Lake City. It’s complete with building retrofits and equipment upgrades.
USDA REAP Loan Guarantee
The loan and grants are available to small business owners and agricultural producers. They can use it for energy audits, renewable energy projects, and energy efficiency upgrades.
Qualified Energy Conservation Bonds (QECBs)
The tax credit can be given by tribal, state, or local governments. You can use the loan for renewable energy and energy efficiency projects.
The projects include building retrofits, community outreach, mass transit, and more.
Commercial Property Assessed Clean Energy (C-PACE) Financing
This option is long-term and low-cost. It includes water conservation, renewable energy, and energy efficiency.
