Senator Kitchen Advances Clean Air & Clean Energy Bill
SALT LAKE CITY – Senator Kitchen’ SB 77 – Electric Energy Related Storage Tax Credit bill passed the Senate floor on Monday morning. This bill promotes clean energy and clean air by incentivizing the purchase of electric energy storage assets (batteries), and by incentivizing the use of electric freight vehicles for shipping and distribution. It does so by enacting a refundable commercial and individual income tax credit for the purchase of an electric energy storage asset (batteries), or certain electric commercial class 8 vehicles. The mission of this bill is to help the State of Utah transition away from fossil fuels, in addition to getting individuals and businesses to invest in battery storage. Senator Kitchen has garnered bipartisan support and hopes this legislation will amplify the use of renewable energy as well as foster energy innovation. This is key to a clean energy future and part of the Senate Democrats’ focus on clean air.
To claim the tax credit, individuals would have to submit an application to the Office of Energy Development, who would then issue them a certificate that shows the amount of the tax credit that the taxpayer qualifies for. For residential use, the tax credit would equal 25% of the price of the purchase, or $5,000; and for commercial and industrial use, the tax credit would equal 10% of the price of the purchase, or $100,000, whichever amount is lesser. This legislation includes a cap of $5 million for the first year of the program, which Senator Kitchen hopes is expanded in the following years.