Alternative Energy Development Incentive (Corporate)

March 21, 2023


The Alternative Energy Development Incentive (AEDI) is a post-performance non-refundable tax credit for 75% of new state tax revenues (including, state, corporate, sales, and withholding taxes) over the life of the project or 20 years, whichever is less. The actual amount and duration of an incentive is determined by the Office of Energy Development (OED) on a case-by-case basis.

Eligible projects include the construction of electricity generation facilities of 2 megawatts or greater that utilize hydroelectric, solar, biomass, geothermal, wind, or waste heat from an industrial facility or a power station in which an electric generator is driven through a process in which water is heated, turns into steam, and spins a steam turbine. It also includes energy derived from the following non-renewable energy sources: nuclear fuel, oil-impregnated diatomaceous earth, oil sands, oil shale, or petroleum coke. To qualify for an incentive, the project must generate new state revenue and new incremental jobs, and it must involve significant capital investment, or the creation of high paying jobs.

To receive a tax credit, projects owners must first apply to the OED for a tax credit certificate and provide all the documents specified in Utah Code 79-6-504. If the OED approves the application and issues a tax credit certificate, it will issue a duplicate copy to the state Tax Commission. To maintain eligibility for the tax credit, the project owners must:

  • Annually file a report with the OED showing the new state revenues generated by the alternative energy project during the taxable year for which they are seeking to receive a tax credit
  • Annually file a report with the OED prepared by an independent certified public accountant verifying the new state revenue
  • File a report with the OED at least every four years prepared by an independent auditor, auditing the new state revenues
  • Provide the OED with any information required by the OED to certify the economic life of the alternative energy project, which may include a power purchase agreement, a lease, or a permit; and
  • Retain records supporting a claim for a tax credit for at least four years

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Utah
Incentive Type: Corporate Tax Credit
Web Site:
Administrator: Utah Governor's Office of Energy Development
Start Date: 5/12/2009
Eligible Renewable/Other Technologies:
  • Geothermal Electric
  • Solar Thermal Electric
  • Solar Photovoltaics
  • Wind (All)
  • Biomass
  • Hydroelectric
  • Combined Heat & Power
  • Landfill Gas
  • Wind (Small)
  • Hydroelectric (Small)
Incentive Amount: 75% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project or 20 years, whichever is less.
Maximum Incentive: 75% of new state tax revenues (including, state, corporate, sales and withholding taxes) over the life of the project or 20 years, whichever is less.
Eligible System Size: Minimum: 2 MW
Carryover Provisions: Excess credit may carry forward for up to seven years


This program has 1 incentives
Technologies: Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Combined Heat & Power, Landfill Gas, Wind (Small), Hydroelectric (Small)
Sectors: Commercial, Industrial
Parameters: The system has a maximum of 2.00 MW, The incentive is 75.00 %, The incentive has a minimum of 20.00 Years


Name: Utah Code 59-7-614.7
Name: Utah Code 79-6-501, et seq.


Name: Chris Reisinger
Organization: Utah Office of Energy Development
Address: 60 East South Temple, Suite 300
Salt Lake City UT 84111
Phone: (801) 538-8682

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.