98-016
Response February 17, 1998
February
5, 1998
Delivered
by e-mail
To: Irene Rees
I
am responsible for administering the Utah Energy Saving Systems Tax Credit for
the COMPANY A. We received our first
application for a tax credit and in evaluating it, I thought of an issues that
I need assistance in resolving.
As
part of the tax credit program application form, an applicant is asked to
complete sections on the itemized costs of equipment and labor. If our office approves the application, then
we use the guidelines as stated in the statute for figuring out the dollar
value of the tax credit. However, I am
not certain if I should include sales tax as an eligible system cost or if I
should first subtract it from the bill(s) submitted and then calculate the
dollar value of the credit. I spoke
with Brent Taylor of the Tax Commission Auditing Division and he said that he
and Frank Hales, his supervisor, believe that the sales tax is an eligible cost
because it is not specifically excluded in the statute. However, he believes that you would know
best how to address this issue.
One
other question I have is that the application requires the applicant to submit
receipts for all costs listed. A
potential applicant contacted me and said that he did not have a receipt for
the used solar panels that he purchased but he did have his canceled check. Is this sufficient? I am not certain because the check does not
show what he bought, only how much he paid.
Thank
you for your assistance on these matters.
If it would be more appropriate for me to write this request to you in a
formal letter, let me know. I look
forward to hearing from you.
NAME
February
17, 1998
NAME
ADDRESS
CITY
STATE ZIP
Advisory
Opinion - Energy Saving Systems Tax Credit
Dear
NAME,
We have received your request for tax
guidance pertaining to the Energy Saving Systems Tax Credit. We offer the following advice:
Your first question is whether the
tax credit is based on the full amount of the purchase, including sales
tax. It is. The statute contemplates that the credit will be calculated
against the full cost of the qualifying item(s). We see no directive from the legislature to exclude sales tax
from the credit calculation.
Second, you ask whether an applicant
must have a receipt to claim the credit or if a canceled check is
sufficient. The receipt is necessary to
document a qualified purchase. A
canceled check is not sufficient.
Please let us know if you have other
questions.
For
the Commission,
Joe
B. Pacheco,
Commissioner
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