Alternative Fuel and Fuel-Efficient Vehicle Tax Credit

The state provides an income tax credit of 35% of the vehicle purchase price, up to $2,500, for an original equipment manufacturer compressed natural gas (CNG) vehicle registered in Utah. It also provides an income tax credit of 50% of the cost to convert a vehicle to run on propane, natural gas, or electricity, up to $2,500. Retrofitted CNG vehicles are also eligible for the credit if they meet the National Fire Protection Association Vehicular Gaseous Fuel Systems Code 52 and satisfy the emissions standards for the county in which the retrofitted vehicle is registered; or for the county in the state with the least stringent emissions standards. Other new clean fuel vehicles that meet air quality and fuel economy standards may be eligible for a credit of $605, including certain electric and hybrid electric vehicles.

Beginning January 1, 2015, vehicles registered in Utah that are powered by propane, natural gas, and electricity are eligible for an income tax credit of 35% of the vehicle purchase price, up to $1,500. Plug-in hybrid electric vehicles will be eligible for a tax credit of $1,000. The tax credit expires December 31, 2015. See the Clean Fuel Vehicle Tax Credit website for eligible vehicles, restrictions, and additional information. (Reference House Bill 74, 2014, and Utah Code 19-1-406, 59-7-605, and 59-10-1009)

Point of Contact
Mat Carlile
Clean Fuel Tax Coordinator
Utah Department of Environmental Quality, Division of Air Quality
Phone: (801) 536-4136
Fax: (801) 536-0085
mcarlile@utah.gov

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