Utah Enacts Exemption for Facilities that Manufacture Qualifying Energy Storage Devices or Equipment

Effective July 1, 2025, Utah has enacted a sales and use tax exemption for amounts paid or charged by an operator of a qualifying energy storage manufacturing facility for:

• Purchases of tangible personal property if the tangible personal property is incorporated into equipment or a device that stores and discharges energy at the qualifying energy storage manufacturing facility; and
• Purchases or leases of machinery, equipment, or normal operating repair or replacement parts if the machinery, equipment, or normal operating repair or replacement parts are used exclusively in the operation of the qualifying energy storage manufacturing facility.

Per the legislation, “Qualifying energy storage manufacturing facility” means a facility that manufactures, in Utah, equipment or devices that store and discharge energy for the purpose of providing electrical power. (S.B. 213, Laws 2025, effective July 1, 2025)