Tencap has been helping high-income earners create tax-saving strategies since its inception. It’s a primary service we offer to help alleviate Americans’ tax burdens. The numbers can be astonishing—and frankly, outrageous. Between state and federal taxes, many high-income owners pay nearly 50 cents on their last dollar earned in taxes.
We unabashedly assert how we spend ample time reviewing our clients’ tax returns each year, looking for ethical yet strategic and intelligent ways to reduce your tax bill.
Tencap works with over six different CPA firms that are a part of our tax planning team. That means we have access to tax planners with brilliant minds and tons of experience.
To preserve your hard-earned money, we recommend you be involved and active in tax planning. So, we created this guide on rebates, incentives, and tax credits available in 2025.
Note Utah’s tax credits for 2025, plus some you can avail of at the federal level.
Utah Rebates, Incentives, and Tax Credits for 2025
Here are the following credits to maximize your savings and preserve wealth more efficiently:
Utah Earned Income Tax Credit
Utah’s Earned Income Tax Credit (EITC) is a tax break equal to 20% of your federal EITC. It provides financial assistance to low to moderate-income individuals by reducing the amount they owe on state taxes. However, unlike the federal EITC, Utah’s policy is non-refundable.
To qualify, you must be eligible for and claim your federal credit in the same tax year. You should also report your Utah income via a Wage and Tax Statement (W-2).
Utah Child Tax Credit
Utah’s Child Tax Credit (CTC) helps ease the financial burden of raising young children by offering up to $1,000 per eligible child each year as a credit against your state income taxes. Like the EITC, this credit is non-refundable, meaning it won’t provide a benefit if your state tax liability is zero.
Under the current law, only children ages 1 to 3 on the last day of the taxable year qualify for CTC in Utah. You must also meet the income limits: $54,000 or less for couples and $43,000 or less for single parents.
However, a new bill is in the works that could expand eligibility for the credit. This legislation would benefit all children under age 6, including infants. The proposed changes would take effect on May 7, 2025, but they would retroactively apply to the 2025 tax year, starting January 1.
For now, the 2024 rules remain in place. The current Utah CTC was established under H.B. 170, signed by Gov. Spencer Cox on March 22, 2023. This was Utah’s first-ever state-level child tax credit to provide targeted relief for families with young children.
Special Needs Adoption Credit
You may claim a refundable credit worth $1,000 for adopting children with special needs. This policy supports the adoption process, encouraging prospective foster parents to adopt kids who require additional care and who are often less likely to be adopted.
The child you adopt must meet any of the following criteria:
- At least 5 years old
- Under 18 years old with a physical, emotional, or mental disability
- Someone placed together with their siblings for adoption
Agricultural Off-Highway Gas/Undyed Diesel Credit
If you have an agricultural business in Utah, the state refunds you for the taxes you pay for motor or undyed diesel fuel—provided that you bought these products within the state and paid taxes at the time of purchase. However, you can only use it to operate stationary farm machinery for non-highway agricultural purposes.
If you meet these criteria, you may claim a credit worth 36.5 cents per gallon of motor and undyed diesel fuel.
Farm Operation Hand Tools Credit
Similarly, the sales and use tax on any hand tool you own primarily and directly for farming in Utah is subject to a refundable tax credit. However, it’s only applicable to tools you purchase within the state and if the tool’s price is over $250.
Renewable Energy Systems Tax Credit
The Renewable Energy Systems Tax Credit (RESTC)—also known as the Utah Solar Tax Credit—officially expired in 2025. While you can no longer claim this credit for new installations, it’s still worth understanding its past benefits, especially if you previously installed a qualifying system.
This tax credit covered 25% of a system’s cost, with a maximum credit that gradually decreased over the years:
- 2023: $400
- 2022: $800
- 2021: $1,200
- 2018–2020: $1,600
- 2017: $2,000
You won’t qualify for this credit if you installed a solar energy system or home battery storage in 2024.
At-Home Parent
If you’re an at-home parent, you may qualify for a nonrefundable $100 tax credit for each child who is 12 months old or younger on the last day of 2024.
To claim this credit, you must meet the following requirements:
- At least one parent must have earned income below $3,000.
- The household’s adjusted gross income must be less than $50,000.
This credit provides modest relief for families with infants, recognizing the financial challenges of staying home to care for a child during their first year.
Refundable Adoption Expenses Credit
If you finalized an adoption during the tax year, you may qualify for a refundable tax credit of up to $3,500 to help offset adoption-related expenses.
To be eligible, you must meet the following criteria:
- Your adjusted gross income must be:
- Less than $55,000 if filing jointly
- Less than $27,500 if filing separately
- Neither you nor your spouse (if applicable) received state or federal assistance during the adoption year.
- You must apply for and receive certification from the Department of Workforce Services under Section 35A-1-111.
Combat-Related Death
If you are filing a tax return on behalf of a military service member who died due to service in a combat zone, you may claim a nonrefundable credit. The credit equals the portion of your tax liability attributed to the deceased service member.
To qualify, all of the following must apply:
- The service member was in the active or reserve US Army, Navy, Air Force, Marine Corps, Coast Guard, or Space Force.
- The combat-related death occurred on or after Jan. 1, 2010.
- The death happened while serving in a combat zone or resulted from a combat-related wound, disease, or injury.
- The service occurred within a designated combat zone as declared by the Presidential Executive Order and before the designation was terminated.
Employing Persons Who Are Homeless
If you hire a homeless person, you may qualify for a tax credit of up to $2,000 per eligible employee.
To claim this credit, the employee must:
- Be continuously employed for at least nine months
- Earn at least $4,000 in wages during that period
This program encourages businesses to provide stable employment opportunities. However, the total tax credits available have a cap of $100,000 for the program’s first year, so early participation is key.
Gold and Silver Coin Sales
If you sell or exchange specific gold and silver coins, you may qualify for an apportionable, nonrefundable credit against your Utah state taxes on recognized capital gains.
While Utah imposes a sales tax on some precious metal purchases, not all transactions are taxed. The base sales tax rate is 4.7%, but with local taxes, it can reach up to 8.35%. Fortunately, many precious metal investments remain tax-free, making Utah a favorable state for investors looking to buy and sell gold and silver.
Health Benefit Plan
If you are uninsured and meet specific income requirements, you may qualify for a nonrefundable tax credit to help offset health insurance costs. This credit helps make health insurance more accessible for eligible individuals and families.
Credit amounts:
- $300 – single taxpayers with no dependents
- $600 – married filing jointly with no dependents
- $900 – all taxpayers with dependents
Eligibility criteria:
- You pay for your health insurance (not covered by an employer’s plan).
- Your employer’s plan only covers employees (not family members).
- You have an active health benefit plan (individual or family coverage).
SHistoric Preservation
If you own or rent a certified historic residential building, you may qualify for a 20% tax credit on qualified rehabilitation expenses.
To be eligible, your project must meet the following requirements:
- Rehabilitation costs exceed $10,000.
- The work complies with the Secretary of the Interior’s Standards for Rehabilitation.
- The building use continues for residential purposes.
For rental properties, this state credit can sometimes be combined with the federal credit, allowing you to claim up to 40% in total tax credits on eligible expenses.
Income Tax Paid to Another State
If you’re a Utah resident or a part-year resident with income taxed by Utah and a different state, the District of Columbia, or a US territory, you may qualify for a credit on your Utah taxes. This credit helps to avert double taxation on income earned outside Utah. However, nonresidents do not qualify for this credit.
To claim it, you must provide documentation of taxes paid to the other states when filing your Utah return. Review Utah’s guidelines to determine eligibility and applicable limits based on your tax situation.
Live Organ Donation Expenses
If you choose to give an organ, you may claim a tax credit of up to $10,000 for qualified expenses related to the donation. Qualifying donations include bone marrow and parts of the intestine, kidney, liver, lung, or pancreas for transplantation into another person.
Eligible expenses must:
- Be incurred by you and not reimbursed by any person or entity
- Be directly related to a live organ donation by either you or a dependent you can claim
- Cover travel, lodging, or lost wages
Military Survivor Benefits
This credit helps provide financial relief to military families who have lost a loved one in service.
If you are a surviving spouse or dependent child of a late military member, you may be entitled to a nonrefundable tax credit equal to 4.55% of the survivor benefits you received during the year.
The conditions for eligibility and benefit payouts include:
- The death of an active-duty member or a reserve of the armed forces
- The death of a reserve member resulting from a service-connected cause while carrying out inactive duty training
Credit for Increasing Research Activities in Utah
If your business—whether a C-Corporation, S-Corporations, LLC, or Partnership—invests in research and development (R&D) in Utah, you may qualify for a tax credit based on your research expenditures:
- 5% of certain payments made to a qualified organization for basic research beyond a set base amount
- 7.5% of qualified research expenses (QREs) in Utah for the current tax year
This credit must be filed with your Utah tax return, supported by QRE data for the past three years and four years for gross receipts.
Retirement Credit
This nonrefundable credit helps reduce Utah state tax liability for eligible retirees.
If you or your spouse (if filing jointly) were born on or before Dec. 31, 1952, you may qualify for a retirement tax credit of up to $450.
Your credit is limited by your modified adjusted gross income (MAGI), nontaxable interest income, and any additions to income. It diminishes gradually at the following income levels:
- $16,000 – married filing separately
- $25,000 – single
- $32,000 – married filing jointly
- $32,000 – head of household or qualifying surviving spouse
Social Security Benefits
This credit helps retirees and beneficiaries reduce their overall state tax burden.
If you or your spouse (if filing jointly) secured taxable Social Security benefits, you may qualify for a non-refundable tax credit to help offset Utah state taxes on these benefits.
Here are a few key details to take note of:
- Utah taxes all income at a flat 4.55% rate.
- You cannot simultaneously claim the Social Security Benefits Credit and the $450 retirement credit—you must choose one.
- To qualify for Social Security benefits, you must attain at least 40 Social Security credits through work and tax contributions.
Veteran Employment
This credit incentivizes businesses to support and employ veterans in Utah.
As such, employers who hire a qualified, recently deployed veteran may be eligible for a non-refundable tax credit to support veteran employment.
Credit amounts:
- $200 per month (up to $2,400 per year) in the first year
- $400 per month (up to $4,800 per year) in the second year
Eligibility criteria:
A qualified veteran, service member, or spouse must meet at least one of the following:
- Served 180+ consecutive days on active duty (excluding training) and received an honorable discharge
- Presently enlisted in the US Armed Forces
- Received a VA disability rating
- Is a spouse or surviving spouse of an eligible veteran
- Purple Heart recipient
- Retired from the US Armed Forces
Federal Rebates, Incentives, and Tax Credits for 2025
The previous section names the credits you can include in Utah’s tax return. Meanwhile, the rebates, incentives, and tax credits listed below may apply to your federal tax return.
Federal Earned Income Tax Credit
The EITC reduces your federal taxes; the best part is that it’s refundable. Depending on your tax filing status, income, and number of dependents, you can earn up to $7,430 in credit if you meet the following criteria:
- Have an ordinary income under $66,819 and an investment income below $11,600
- Have a valid Social Security number by the cutoff date of your return (including extensions)
- Be a US citizen or resident alien all year
- Not filing Foreign Earned Income (Form 2555)
- Meet specific rules if you’re separated from your spouse and aren’t filing a joint tax return
Federal Child Tax Credit
This tax credit is the federal counterpart of Utah’s Child Tax Credit. Eligibility is more stringent, as your child must:
- Be younger than 17 at the end of the year
- Be your child, stepchild, foster child, sibling, step-sibling, grandchild, nephew, or niece
- Provide no more than half of their financial needs during the year
- Has lived with you for over six months
- Be your dependent
- Not file a joint return with your spouse for the tax year or file it only to claim a withheld income tax or estimated tax paid refund
- Be a US citizen, national, or resident alien
- Must have a Social Security Number that is cleared for employment and is issued before the due date of your tax return
Also, your annual income mustn’t exceed $200,000 or $400,000 for joint filing. Otherwise, you may qualify for partial credit. Moreover, you can claim this tax credit even if you don’t typically file a tax return.
Federal Adoption Tax Credit
The Adoption Tax Credit covers adoption fees, court and attorney fees, traveling expenses, and other costs of adopting an eligible child. In this context, an “eligible child” is someone under 18 years old who is physically or mentally incapable of taking care of themselves.
The maximum credit you’ll receive for adoptions finalized in 2023 and tax returns claimed in 2024 is $15,950 per adopted child. However, for adoptions finalized in 2024 and tax returns claimed in 2025, the maximum credit increases to $16,810 per adopted child, providing additional financial relief for adoption-related expenses.
Credit for Other Dependents
You may claim Credit for Other Dependents if you don’t qualify for Utah’s or the federal government’s CTC. It benefits dependents of any age so long as they have Social Security or Taxpayer Identification numbers. Even those unrelated to you are eligible, provided they live with you.
The maximum credit amount you can receive for each qualifying dependent is $500, which phases out as soon as your income exceeds $200,000 or $400,000 for joint tax returns.
EV Tax Credit
If you’re driving an electric vehicle (EV), you’d be glad to know that new EVs may be eligible for a non-refundable tax credit of up to $7,500, while used vehicles qualify for up to $4,000. However, your vehicle’s final assembly must be in North America. Additionally, the EV must meet the following manufacturer’s suggested retail price (MSRP) limits:
- Vans, SUVs, and pickup trucks: $80,000
- Sedans and passenger cars: $55,000
Finally, eligibility also depends on your modified adjusted gross income (MAGI). The following thresholds apply to EV tax credit eligibility:
- $300,000 for joint filers
- $225,000 for head-of-household filers
- $150,000 for all other filers
Premium Tax Credit (Under the Affordable Care Act)
Healthcare is more affordable by availing of the refundable Premium Tax Credit (PTC), which covers policies from the Health Insurance Marketplace®.
Qualification is relatively simple: your household must earn at least 100% but no more than 400% of the federal poverty line.
Additionally, you must not file a married-filing-separately tax return and be a dependent of another person. Lastly, you must meet the following criteria in the same month:
- Maintain health insurance through the Health Insurance Marketplace
- Pay the share of premiums not covered by advance credit payments by the due date of your tax return
- Can’t avail of affordable coverage through a qualified employer-sponsored plan providing minimum value
- Aren’t eligible for a government health program
- Settle the portion of premiums not covered by advance credit payments
For tax years 2021 through 2025, Congress provisionally widened eligibility for the Premium Tax Credit by lifting the restriction on a taxpayer’s household income. Under this rule, taxpayers with a household salary of more than 400% of the federal poverty line for their family composition may still qualify for a Premium Tax Credit if otherwise eligible.
American Opportunity Tax Credit
If you need help getting through college, the American Opportunity Tax Credit (AOTC) covers the expenses you pay for the first four years. It has a maximum annual credit of $2,500 per student, while 40% of the remaining credit for up to $1,000 is refundable.
To qualify for the AOTC, you must pursue a degree and enroll for at least half the time for at least one academic period. Moreover, you mustn’t have claimed the AOTC or Hope Credit for over four tax years without a felony drug conviction.
Lifetime Learning Credit
The Lifetime Learning Credit (LLC) expands the AOTC’s scope by qualifying student expenses for undergraduate, graduate, professional degree, and upskilling courses. The credit—worth up to $2,000 per return—has no cap on how many years you can claim it.
You, your dependent, or a third party must pay for an eligible student’s higher education expenses to claim the LLC. The eligible student must also be you, your spouse, or a dependent on your tax return.
Work Opportunity Tax Credit
If you’re an employer, this tax credit is available when hiring jobseekers from certain groups who have historically faced employment barriers, such as veterans and former felons.
The Work Opportunity Tax Credit (WOTC) equals 40% of up to $6,000 of income paid to an employee from the targeted group. Employees must also be in their first employment year and have performed at least 400 service hours. Meanwhile, those who have rendered fewer than 400 but at least 120 hours of service can receive a 25% rate. The WOTC excludes rehired employees.
Renewable Energy Investment Tax Credit
The Renewable Energy Investment Tax Credit (ITC) is the federal counterpart of Utah’s RESTC and covers rooftop solar purchase and installation costs. Fuel cells, small wind energy, and energy storage are also eligible for ITC. Furthermore, it doesn’t have a dollar cap, so you get a 30% tax break regardless of how much you spend on these systems.
If you’re looking for ways to make your home more eco-friendly, initiatives like Utah Water Savers offer rebates for water-efficient landscaping and irrigation systems. As a result, you reduce utility costs while conserving resources.
You qualify for credits if the renewable system is new, legally yours, and operating in your US residence.
Energy-Efficiency Tax Credit
Under the Energy-Efficiency Tax Credit, home improvements to boost energy efficiency may be eligible for a tax break of up to 30%, with a cap of $1,200 annually. Meanwhile, heating and cooling system improvements have a yearly maximum tax credit of $3,200. It covers the following upgrades:
- Skylights, insulation, doors, and windows
- Home energy audits
- Electrical panels
- Heating and cooling systems
R&D Tax Credit
If you want to minimize your research and development costs, the R&D Tax Credit incentivizes your research and those conducted on your behalf. However, the expenses must qualify as research or experimental expenditures per I.R.C. §174. Furthermore, the R&D process must undergo experimentation, be technological, and improve or overhaul your business.
The IRS has introduced several key updates for 2025:
- Section 280C election: Now selected at the top of Form 6765 (Item A)—check “Yes” or “No” on your original return.
- Controlled groups: If you’re part of a controlled group or business under common control, attach the required documentation to Form 6765 (Item B).
- New sections E, F, and G:
- Section E: This must be completed if QREs are reported on line 48.
- Section F: Summarizes total QREs and determines Section G filing requirements.
- Section G: Mandatory from 2025 onward for all filers.
- Payroll tax credit: The max payroll tax research credit for small businesses is $500,000.
- Amended returns: Additional documentation is necessary for research credit claims on amended returns.
- E-filing attachments: Use prescribed naming conventions (e.g., Form6765ItemASection280C.pdf).
Get the Most Out of Your Taxes with Tencap
The extensive array of rebates, incentives, and tax credits available in Utah and the federal government presents valuable opportunities for individuals and businesses to cut expenses and maximize savings. However, the details discussed in this article only scratch the surface—given their complexity, it’s no wonder many find tax planning and management daunting.
With a Tencap advisor, you don’t have to navigate these opportunities alone. Tencap Wealth Coaching offers a wide range of services to help you grow your savings and profits, from tax strategy to financial management solutions.
Your path to financial independence and being solvent during retirement requires highly intentional, strategic, and wise decisions on building and securing wealth.
Sign up for a financial advisory services with Tencap to get started on your tax strategy and build your financial plan.
The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Utah or where otherwise legally permitted. All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Moreover, this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.
Nick Carrigan
Nick trains and develops families in creating, maintaining, and growing wealth. This includes educating clients on the science and academics of investing, comprehensive financial planning, and ongoing coaching to ensure discipline for a lifetime. Nick has seen this create incredible levels of freedom, fulfillment, and love for the families he works with.
