R362-2-4. Investment Tax Credit Certification Process

  (A) OED is responsible for certifying renewable energy systems tax credits.

  (B) Applications for credits are to be made on forms developed by OED to gather information necessary to implement this rule.

  (C) OED will evaluate each application according to the definitions and criteria established by statute and by this rule. If the information contained within an application is inadequate to determine eligibility according to this rule, OED reserves the right to request additional information from the applicant. If an applicant is unable or unwilling to provide adequate information, OED may deny the application and no tax credit will be certified.

  (D) If, after evaluating an application, OED finds that a renewable energy system is eligible for a residential or commercial tax credit, OED will complete a Utah State Tax Commission Form TC-40E that will serve as the taxpayer's documentation of eligibility for a tax credit. Only OED may issue a completed TC-40E and a tax credit may not be claimed without such documentation.

  (E) Upon the completion of OED's evaluation of an application, OED will provide to the applicant one of the following, as appropriate:

  1. A completed TC-40E allowing the full amount of tax credit requested;

  2. A completed TC-40E allowing a portion of the tax credit requested accompanied by a written explanation for the denial of the full requested amount; or

  3. A letter informing the applicant that the request for a tax credit has been denied and providing an explanation for the denial.

  (F) If OED denies, in whole or in part, an application for a tax credit, the taxpayer applicant may, consistent with Section 63G-4-301 (Administrative Procedures Act), request that the decision be reviewed by the OED manager. If, after review by the manager, the taxpayer desires a further appeal, he or she may request reconsideration of the decision by the director of OED, consistent with Section 63G-4-302.

  (G) All applications for credits under this rule shall provide the following information:

  1. The true legal name of the person or persons seeking a tax credit;

  2. The tax identification number or numbers of persons seeking a tax credit;

  3. The physical address, plat number, or global positioning satellite (GPS) coordinates of the property where the system is installed. Location information must be sufficient to permit OED staff to locate the site for on-site verification of the information in the application.

  4. A general description of the system, including technologies employed (e.g. wind, solar thermal), intended use, energy production capacity, cost, date of completed installation, and other information specified in this rule.

  (H). Applications for residential and commercial tax credits must provide, either within an application form or provided as supporting documentation, each of the following:

  1. Detailed diagrams of the system installed such that OED staff, evaluating each proposal, can distinguish all major system components, how the system operates, and which components are eligible costs for computing the tax credit.

  2. Photographs or copies of photographs that show major system components, how and where the system is installed, electrical interconnections with the power grid or other components of the electrical system at the taxpayer's home or business, and any other components of the renewable energy system that demonstrate that individual components are eligible costs under this rule. Photographs or copies of photographs should also demonstrate that a system is constructed in a safe and reliable manner.

  3. Clear documentation of costs incurred for all components of the renewable energy system. Original or reproduced copies of all receipts or invoices should be provided and all invoices from contractors or equipment dealers must show that the invoiced amounts were paid by the taxpayer; otherwise, copies of canceled checks should be provided. Documentation should also include an itemized listing of all components of an installed system, including manufacturer and model numbers for major equipment components, the costs of all major components, and costs for labor, installation, and/or design. The sum of documentation provided should be sufficient to allow OED to identify all eligible and ineligible costs and to determine whether such costs are reasonable. Applications that do not include a clear itemization of system costs will not be considered.