Turbo tax is saying the solar credit for 2018 in Utah is $2000, I thought it dropped to $1600, Which is correct?

[JulieCo]

There are actually two different energy credits referenced in your question above, both of which are available for the state of Utah and that have to do with solar energy: a Renewable Energy Systems Tax Credit and a Qualified Solar Project Credit. 

1)      The Qualified Solar Project allows a credit of 25 percent of the amount paid to buy one or more solar units from a qualifying political subdivision, up to a maximum credit of $2,000 per year. The installation of a solar power system at a residence or business does not qualify for this credit. 

This credit is entered in a Utah state return in TurboTax on the page labeled  “Let’s check for Utah Credits.”  One option listed under this heading is “Invested Money in a Solar Project.”  See sample screenshot attached.  If you have a Solar Project purchase, you will continue through the screens until you reach the screen labeled “Qualified Solar Project Credit” and enter your purchase price paid in 2018.  See sample screenshot attached.  TurboTax will then calculate a 25% credit or $2000 whichever is less to be reported on your return.  Here is link with more information on the Qualified Solar Project.  https://incometax.utah.gov/credits/solar-project

2)      The other energy credit related to solar is the Renewable Energy Systems Tax Credit which is divided into two types of incentives.  The Investment Tax Credit (ITC) and the Production Tax Credit (PTC). The Investment Tax Credit (ITC) has two sides: Residential and Commercial.  Eligible technologies include solar photovoltaic (solar PV), solar thermal, wind, geothermal, hydro, and biomass.  This credit is the one which is being phased out over the next several years.  Here are links to more information:  https://incometax.utah.gov/credits/renewable-energy-systems https://energy.utah.gov/renewabletaxcredit/   

To enter this credit in your Utah State Tax Return in TurboTax, continue through the program until you come to a screen listing several items under “Let’s Check for Other Utah Credits.”  One item listed is “Received a pre-approved credit from the state.”  See the sample screenshot attached.   Select YES and then use the drop down link for credit description until you find Renewable Energy Systems Credit and enter your amount.  See the sample screenshot attached.

[Edited 2-11-19|12:04pm]

[182dd344]

According to Utah state statute section 59-7-614(3)(d)(i) the tax credit is limited to $1,600 for systems installed in 2018, 2019 or 2020. The change was made in SB141 of the 2018 legislative session. (<a rel="nofollow" target="_blank" href="https://le.utah.gov/~2018/bills/static/SB0141.html">https://le.utah.gov/~2018/bills/static/SB0141.ht...>)

[JulieCo]

There are actually two different energy credits available for the state of Utah that have to do with solar energy:  A Renewable Energy Systems Tax Credit and a Qualified Solar Project Credit.  The $2,000 credit mentioned in the question from TurboTax is for the Qualified Solar Project Credit.  This is 25% of the solar project purchase or up to $2,000.  The Renewable Energy Credit is the one being phased out and is entered in a different spot in TurboTax.  See the completely revised and updated answer above for where to enter either of the credits on your Utah state tax return in TurboTax.

[182dd344]

According to Utah state statute section 59-10-1014(4)(b)(ii)(B) the tax credit is limited to $1,600 for systems installed in 2018, 2019 or 2020. The change was made in SB141 of the 2018 legislative session. (https://le.utah.gov/~2018/bills/static/SB0141.html)