Renewable Energy Sales and Use Tax Exemption

Utah tax code exempts the purchase or lease of equipment used to generate electricity from renewable resources from the state sales tax. Eligible 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 seven years.

Eligible facilities must use renewable energy to produce electricity and have a production capacity of 20 kW or greater. A facility that has its generation capacity increased by one or more megawatt as a result of the machinery or equipment may also be eligible for the exemption.

Equipment eligible for the exemption includes wind turbines, 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.