UT HB0016

Utility-scale solar power plants (over 1 megawatt capacity) permitted after May 6, 2026 are ineligible for state incentives including tax credits and grants if located on prime farmland, irrigated cropland, or high-quality non-irrigated cropland as designated by the Natural Resources Conservation Service.

Solar plants on non-irrigated cropland of capability class five or six, or on grazing land producing 125-250 pounds of vegetation per acre annually, may receive only 50% of eligible state incentives.

Owners must consult with the Division of Wildlife Resources or U.S. Fish and Wildlife Service regarding potential wildlife impacts before construction.

Decommissioning plans and financial assurance (bond, letter of credit, or parent company guarantee) covering removal costs must be approved by local jurisdictions before construction begins, with plans updated every five years.

Exemptions apply to solar plants with interconnection queue positions or signed commercial agreements before January 1, 2026, or those already receiving state incentives before May 6, 2026.