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Senate panel advances bill to extend sales-tax exemptions for energy inputs and add large energy-storage exemption

Utah Senate Revenue and Taxation Committee · February 2, 2026
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Summary

The Senate Revenue and Taxation Committee voted unanimously to favorably recommend SB 223, extending sales-and-use tax exemptions for certain energy inputs to 2037 and adding an exemption for energy storage systems over 2 megawatts, a measure sponsors said will help attract large capital projects to rural Utah.

Senate Revenue and Taxation Committee Chair Senator Dan McKay said the committee would consider Senate Bill 223 on Feb. 2, 2026. The bill, sponsored by Senator Vickers, would extend an existing exemption for certain energy inputs through 2037 and add a targeted exemption for energy storage projects larger than 2 megawatts.

Vickers told the committee the proposal continues Utah’s longstanding approach of exempting…

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