Form Tc-20 - Utah Corporation Franchise Or Income Tax Return Instructions

If you claimed a credit on your return for machinery

(24) Qualifying Solar Project Credit

and/or equipment used to conduct research for a year

(UC §59-7-614.3)

after 1997 and prior to 2011 and the credit was more

You may claim a credit of 25% of the amount paid to

than the tax liability for the year, you may carry over the

buy one or more solar units from a qualifying political

excess credit to the next 14 years and use it to offset

subdivision (as deﬁ ned in UC §59-7-614.3), up to a

tax until used up. If you are using any remaining credit

maximum credit of $2,000. This credit is in addition to

in 2011, enter that carryover amount on Schedule A,

any other energy credit you claim.

page 2, line 23 (23a through 23f). Use code 13.

A qualifying solar unit is a portion of the electrical out-

put of an active solar project constructed, controlled

(15) Utah Municipal, U.S. and Agency Bond

or owned by a qualifying political subdivision, which

Interest Credit (UC §59-7-601)

generates electricity furnished to and for the beneﬁ t of

A credit of 1% of Utah municipal interest and federal

one or more residential units, and is sold to the taxpayer

interest included in Utah taxable income will be al-

in exchange for a credit on the taxpayer’s electrical bill.

lowed. For multi-state corporations, the amount of

Utah municipal and federal interest included in Utah

There is no form for this credit. Keep all related docu-

taxable income is calculated by multiplying the total

ments with your records.

amount of that interest by the current year apportion-

Calculation of Qualifying Solar Project Credit

ment fraction.

1. Amount paid for solar unit(s)

$_ __ __

Attach a schedule showing the calculation of the credit.

Keep a copy of the schedule and all related documents

2. Multiply line 1 by 25% (.25)

$_ __ __

with your records.

3. Maximum allowable credit

2,000

Note: Any credit that is more than the tax liability may

4. Enter lesser of line 2 or line 3. $_ __ __

be carried back to the previous three years, or carried

This is your credit.

forward for ﬁ ve years.

Enter this amount on TC-20, line 23, using code 24.

(16) Utah Steam Coal Credit Carryforward

Note: Any credit that is more than the tax liability may

This credit was repealed for tax years beginning on or

be carried forward for the next four years.

after Jan. 1, 2002. Unused credits earned prior to the

repeal date may be carried forward 15 years.

Contact your city or electrical utility provider for more

information.

(21) Renewable Residential Energy Systems

Credit (UC §59-7-614)

Line 24 – Net Tax

This credit is for reasonable costs, including installation,

Subtract line 23 from line 22. Enter the result, but not

of a residential energy system that supplies energy to

less than the minimum tax shown on line 18b or less

a residential unit in Utah. If the residence is sold to a

than zero.

non-business entity before claiming the tax credit, you

may irrevocably transfer the right to the tax credit to

Line 25 – Utah Use Tax

the new owner. Additional residential energy systems

You must pay use tax on all taxable items bought for stor-

or parts may be claimed in following years as long as

age, use or consumption in Utah during the ﬁ ling year, if

the total amount claimed does not exceed $2,000 per

sales and use tax was not paid to the seller at the time of

residential unit. The principal portion of the system’s

purchase. This includes Internet or catalog purchases.

lease payments may qualify for the credit, if the lessor

You may take a credit for sales or use tax paid to another

irrevocably elects not to claim the credit.

state (but not a foreign country). If the other state’s tax

Note: Any credit that is more than the tax liability may

rate is lower than Utah’s, you must pay the difference. If

be carried forward for the next four years.

the other state’s tax rate is more than Utah’s, no credit or

refund is given. If sales tax was paid to more than one state,

Get form TC-40E, Renewable Residential and Commer-

complete the worksheet on page 12 for each state. Add

cial Energy Systems Tax Credits, from the Utah Ofﬁ ce

lines 8 on all worksheets and enter the total on line 25.

of Energy Development with their certiﬁ cation stamp,

verifying the credit is approved and showing the amount

Sales and use tax rates vary throughout Utah. Use

of the approved credit. Do not send form TC-40E with

the chart on page 12 to get the rate for the location

your return. Keep the form and all related documents

where the merchandise was delivered, stored, used or

with your records.

consumed. Use the county tax rate if the city is not listed.

For more information, contact:

Grocery food bought through the Internet or catalog is

taxed at 3%.The grocery food must be sold for ingestion

Utah Ofﬁ ce of Energy Development

or chewing by humans and consumed for the substance’s

195 N 1950 W, 2nd Floor

taste or nutritional value. The reduced rate does not ap-

Box 144845

ply to alcoholic beverages or tobacco. See Publication

SLC, UT 84114-4845

25 online at tax.utah.gov/forms for more information.

801-536-4235

energy.utah.gov

Enter use tax of $400 or less. If the amount is over

$400, you must get a sales and use tax license and

pay the use tax on a sales and use tax return.

Page 11

Form Tc-20 - Utah Corporation Franchise Or Income Tax Return Instructions - 2011 Page 13

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