R362-2-9. Investment Tax Credit, Eligible Costs for Commercial and Residential Systems, Wind

  (A) All eligible costs for wind energy systems must conform with Section R362-2-5, above. Wind energy systems must also meet the requirements in this Section.

  (B) Wind systems of 50 kilowatts generating capacity or less must include a wind turbine that is either:

  1. Listed and certified by the Small Wind Certification Council in order to be eligible for a Utah commercial or residential tax credit. This list may be found at the following site: http://www.smallwindcertification.org/certified-turbines/

  2. The applicant can demonstrate to OED that the turbine meets standards that are equivalent to those of the Small Wind Certification Council as of calendar year 2007.

  (C) Inverters and charge controllers must by certified for safety by a Nationally Recognized Testing Laboratory as meeting Underwriters Laboratory Standard 1741.

  (D) All wind energy systems must be designed and installed consistent with the National Electric Code. Grid connected systems must also meet all interconnection standards of the local electrical utility. Applications for residential or commercial tax credits for grid-connected systems must include a copy of an interconnection or net metering agreement with the local electrical utility.

  (E) In order to be eligible for a residential or commercial tax credit, the taxpayer applicant must demonstrate that a wind energy system has been sited and installed appropriately. Specifically, the system should be:

  1. Installed such that the central tower or pole upon which the turbine is mounted is located a distance at least equal to one and one-half times the height of the tower or pole from any:

  a. Buildings;

  b. Utility poles or overhead utility lines;

  c. Fences, roads, or other structures outside of the boundaries of the taxpayer's property.

  2. Installed such that wind flowing to the system is not obstructed or airflow diminished or turbulence created by nearby:

  a. Trees or other vegetation;

  b. Buildings and other structures;

  c. Hills, cliffs, or other topographical obstructions.

  The photographs included with a wind energy system should include views of the system from all angles such that OED can verify appropriate siting. OED also reserves the right to conduct a site visit to verify appropriate siting.

  (F). Wind turbines mounted on buildings are not eligible unless it can be demonstrated by a professional engineer that the building's soundness and structural integrity are not compromised by the wind energy system and that the attachments of the system to the building are sufficient to withstand the most extreme local weather conditions.

  (G) Wind energy systems must include lightning protection to be eligible for residential or commercial tax credits.

  (H) Wind turbines must be covered by a manufacturer's warranty that guarantees against defects in design, material, and workmanship for at least five years after installation under normal use in a wind energy system.

  (I) In order to be eligible for a residential or commercial tax credit, a wind energy system must comply with all local building or zoning ordinances. Copies of any required permits should be included with the tax credit application.

  (J) In order to be eligible for a residential or commercial tax credit, a wind energy system must be certified for electrical safety by either:

  1. A professional electrician licensed by the State of Utah;

  2. A county or municipal building inspector licensed by the State of Utah.

  Proof of this certification may be required with the tax credit application.

  (K) For purposes of computing eligible costs for residential and commercial tax credits, the reasonable cost of a wind energy system is considered to be no higher than $8 per watt of rated output capacity for all eligible costs listed above and in Section R362-2-5 and prior to any cash rebates or incentives that the taxpayer may receive from a third party (such as a utility).

  1. For a residential tax credit application with total pre-rebate eligible costs exceeding $8 per watt of capacity, the amount of the tax credit shall be calculated as follows:

  Tax credit granted = (($8 x rated output capacity in watts) - rebates) x 0.25

  2. For a commercial tax credit application with total eligible costs exceeding $8 per watt, the amount of the tax credit shall be calculated as 10% of costs calculated as follows:

  Tax credit granted = (($8 x rated output capacity in watts) - rebates) x 0.10