To encourage individuals and businesses to reduce vehicle-related air pollution, the state offers a nonrefundable tax credit of up to $3,000 for purchase of a new vehicle registered in Utah and manufactured to use a clean fuel or up to $2,500 for each vehicle conversion to clean fuels. Clean fuels that qualify include compressed natural gas, propane, electricity or other fuels approved by the Division of Air Quality or the 1990 Clean Air Act.
The credit can only be taken once per vehicle. If the credit was taken by a previous owner, the current owner is not eligible to take the credit.
This credit may only be applied against Utah income tax due; any tax credit in excess of tax due will not be refunded.
To qualify you must have:
Note: An electric-hybrid vehicle no longer qualifies for this credit if purchased after 2005.
To take 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 has been approved. Do not submit this form with your tax return; keep it with your tax records.
In addition to the tax credits, the Legislature also has created a low-interest loan package to help public and private businesses finance conversions of fleet vehicles to clean fuels. For information regarding eligible equipment conversions, call the Department of Environmental Quality, 801-536-4000. See DEQ's home page at: http://www.deq.utah.gov/.
Note: The incremental cost is the difference between the cost of a new manufactured clean-fuel vehicle and the cost of the same model without the clean fuel system.
The credit is 50% of the:
Division of Air Quality
150 North 1950 West
Salt Lake City, UT 84116
Telephone (801) 536-4029 to obtain Form TC-40V, approval, and for additional
information.
http://airquality.utah.gov/
