Utahns who add renewable energy systems to their homes would be able to claim up to $2,000 in a state tax credit under a proposed bill.
On Wednesday, the Legislature's Public Utilities and Technology Interim Committee approved the legislation as a committee bill.
The tax credit had been in place since 1981, but it was set to expire in 2006. The new bill would extend the availability of the credit until 2011. The credit applies to solar, biomass, geothermal, wind or hydroenergy systems used to supply energy to residential units.
For example, homeowners who add a solar panel to their homes to heat hot water could claim 25 percent of the cost the system, up to a maximum $2,000 including installation costs, against any tax liability for the year the system is placed in service.
In addition, a federal tax credit would allow 30 percent of the cost of a solar device to be claimed as a credit.
Sarah Wright, executive director of Utah Clean Energy, said Utah's $2,000 credit has not been adjusted for inflation since 1997.
The bill also includes business entities, which can claim 10 percent of the costs of a renewable system, up to a maximum of $50,000.
From 1981 through September 2005, roughly $2.7 million in renewable energy tax credits have been claimed in the state of Utah.
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