HB 350 Utah House · 2025 General Session

District Energy Amendments

HB 350 amends Utah's high-cost infrastructure tax credit program to include district energy systems, which are centralized networks providing heating and cooling to multiple buildings (like apartment complexes or business districts) from a single source. The bill sets minimum investment thresholds that these systems must meet to qualify for the tax credit and updates definitions to explicitly cover cooling plants under existing heat corporation rules. This change directly affects developers and operators of district energy projects by making them eligible for the tax credit, potentially reducing their project costs. The bill makes these adjustments without appropriating new state funds.

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Feb 2025

House Passage

Mar 2025

Senate Passage

Mar 2025

Signed into Law

Mar 2025

Introduced Jan 29, 2025 Signed Mar 26, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Enrolled · 5 edits · Mar 26, 2025

MODERATE

This bill updates Utah's High Cost Infrastructure Development Tax Credit Act to include district energy systems, which provide heating, cooling, and hot water through centralized distribution networks. The changes expand eligibility for tax credits to include district energy projects and clarify how cooling plants are treated under existing definitions.

Scope change

The bill expands the scope of qualifying infrastructure projects to include district energy systems, which were previously not explicitly covered under the High Cost Infrastructure Development Tax Credit Act.

DEFINITION

Added a new definition for 'District energy system' to clarify that these systems use thermal energy sources to provide space heating, hot water, or space cooling through a distribution network.

Added a new definition for 'Cooling plant' to ensure cooling facilities are properly defined alongside heating plants in the utility definitions.

ELIGIBILITY

Modified the definition of 'Heat corporation' to explicitly include facilities that operate both heating and cooling plants together, while excluding standalone cooling plants.

Added district energy systems as a qualifying energy delivery project eligible for high cost infrastructure tax credits, with specific investment thresholds established for these projects.

REQUIREMENT

Modified investment thresholds for high cost infrastructure projects to include specific dollar amounts for district energy system construction projects.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 26, 2025

Signed into law

Governor Signed

executive

Mar 8, 2025

Legislature · Passed

House/ signed by Speaker/ sent for enrolling

legislature

Mar 8, 2025

Lower · Passed

Senate/ signed by President/ returned to House

lower

Feb 27, 2025

Upper · Passed

Senate/ committee report favorable

upper

Feb 27, 2025

Upper · Passed

Senate Comm - Favorable Recommendation

upper

Feb 25, 2025

Committee

Senate/ to standing committee

upper

Feb 24, 2025

Introduced

Senate/ 1st reading (Introduced)

upper

Feb 21, 2025

Upper · Passed

House/ passed 3rd reading

upper

Feb 13, 2025

Lower · Passed

House/ committee report favorable

lower

Feb 13, 2025

Lower · Passed

House Comm - Favorable Recommendation

lower

Feb 7, 2025

Committee

House/ to standing committee

lower

Jan 29, 2025

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 1 co-sponsor