Clean Fuel Vehicle Tax Credit (code 05)
Last Updated on December 14, 2011
Utah taxpayers may claim a non-refundable tax credit for the purchase of qualified new vehicles or for the conversion of vehicles or engines to use clean burning fuels.
The credit may only be taken once per vehicle and must be claimed in the taxable year the vehicle or engine is purchased or converted. If the credit was taken by a previous owner, the current owner is not eligible to take the credit.
Four clean fuel vehicle credits are available. They are:
- $605 if you bought a new vehicle having less than 7,500 miles, and registered and titled for the first time in Utah. The vehicle must meet air and fuel economy standards set out in UC §59-10-1009.
- The lesser of $2,500 or 35% of the purchase price for a qualified vehicle fueled by compressed natural gas and registered in Utah.
- The lesser of $2,500 or 50% of the cost of conversion equipment (less any clean fuel grant received) for a vehicle registered in Utah. The equipment must convert the engine to:
- be fueled by propane, compressed natural gas, or electricity;
- be fueled by another fuel as effective as the above listed fuels, as determined by the Air Quality Board; or
- meet the clean-fuel vehicle standards in the federal Clean Air Act.
- The lesser of $1,000 or 50% of the cost of conversion of a special mobile equipment engine (less any clean fuel grant received), if the special mobile equipment engine is to be fueled by:
- propane, compressed natural gas, or electricity;
- another fuel determined by the Air Quality Board to be as effective as the above listed fuels; or
- another fuel determined by the Air Quality Board to be substantially more effective in reducing air pollution than the fuel for which the engine was originally designed.
Claiming the Credit
To claim this credit, complete form TC-40V, Clean Fuel Vehicle Tax Credit, which must be certified by the Department of Environmental Quality's Division of Air Quality, verifying the credit is approved.
Any tax credit in excess of tax due will not be refunded, but may be carried forward to offset tax for up to five years.
Do not submit form TC-40V with your tax return. Keep the form and all related documents with your tax records.
The credit is claimed by entering the allowable credit on your Utah TC-40A, Part 4, using code 05.
For more information, contact:
Division of Air Quality
195 North 1950 West
PO Box 144820
Salt Lake City, UT 84114-4820