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DEQ.utah.gov - Utah Department of Environmental Quality

Division of Air Quality

Clean Fuel Vehicle Tax Credit

In 2008, the Utah Legislature revised the State’s Clean Air and Efficient Vehicle Tax Incentives. Because of this revision, different rules apply for vehicle's purchased before and after January 1, 2009.

newThe Clean Fuel Tax Credit for Vehicles purchased on or after January 1, 2009

 

The Utah Legislature revised the State’s Clean Air and Efficient Vehicle Tax Incentives during the 2008 legislative session. This revision reduced the tax credit for natural gas Original Equipment Manufacturer (OEM) vehicle to the lesser of $2500 or 35% of the vehicle's purchase price. This revision also allows for a $750 tax credit for the original purchase of a new vehicles that meet air quality and fuel economy standards. This revision also eliminates a provision that excludes hybrid electric- gasoline vehicles from the tax credit; however they would need to meet air quality and fuel economy standards to be eligible. The tax credit for conversion remained the same. (Reference House Bill 106, 2008, Utah Code 59-7-605 and 59-10-127).

How to Claim the Clean Fuel Vehicle Tax Credit

Taxpayers may claim a nonrefundable credit on their individual income tax, corporate franchise tax or fiduciary tax returns for the purchase or conversion of vehicles that use cleaner burning fuels. In order for a taxpayer to claim this credit they must completely fill out tax form TC-40V.

A separate form must be completed for each vehicle claimed. The credit may only be taken once per vehicle. The vehicle must be certified and claimed in the taxable year in which the item is purchased or converted. If the credit claimed exceeds the tax liability for a taxable year, the credit that exceeds the liability may be carried forward for up to five taxable years.

Taxpayers may claim a nonrefundable tax credit against state individual income tax, corporate franchise tax or fiduciary tax as follows:

Original Equipment Manufacturer (OEM) Compressed Natural Gas Vehicles:

35 percent of the vehicle's purchase price minus any grant received, up to $2,500 per vehicle registered in Utah if:

  1. It is fueled by natural gas
  2. It meets the clean fuel vehicle standards in the Clean Air Act; and
  3. A previous owner did not take the same credit.

 

Proof of purchase requirements for OEM vehicles can be found in R307-121-3.

Motor Vehicles that meet Air Quality and Fuel Economy Standards:

$750 for the Original purchase of a new vehicle that is not fueled by compressed natural gas if the vehicle:

  1. meets air quality and fuel economy standards (see tables to see which vehicles maybe eligible to receive this credit);
  2. has never been titled or registered and has been driven less than 7,500 miles; and
  3. Must be an original purchase of a new vehicle.

The following is a list of vehicles that may be eligible to receive the Air Quality and Fuel Economy Standards tax credit:

 

Model Year 2010 Vehicles that may claim the Air Quality and Fuel Economy Tax Credit
Model Displacement Cyl Drive Fuel Underhood ID Veh Class Air Pollution Score Combined MPG
Ford Fusion Hybrid

2.5
4
2WD
Gasoline
AFMXv02.5VZH
Midsize Car
9.5
39

Ford Escape Hybrid

2.5
4
2WD
Gasoline
AFMXT02.52ZF
SUV
9.5
32
Honda Insight
1.3
4
2WD
Gasoline
AHNXV01.3CD2
Small Car
9.5
42
Lexus HS 250h
2.4
4
2WD
Gasoline
ATYXV02.4CC4
Small Car
9
35
Mazda Tribute Hybrid
2.5
4
2WD
Gasoline
AFMXT02.52ZF
SUV
9.5
32
Mercury Mariner Hybrid
2.5
4
2WD
Gasoline
AFMXT02.52ZF
SUV
9.5
32

Mercury Milan Hybrid

2.5
4
2WD
Gasoline
AFMXV02.5VZH
Midsize Car
9.5
39
Toyota Camry Hybrid

2.4
4
2WD
Gasoline
ATYXC02.4HC3
Midsize Car
9.5
34

Toyota Prius

1.8
4
2WD
Gasoline
ATYXV01.8HC3
Midsize Car
9.5
50

 

Model Year 2009 Vehicles that may claim the Air Quality and Fuel Economy Tax Credit
Model Displacement Cyl Drive Fuel Underhood ID Veh Class Air Pollution Score Combined MPG

Ford Escape Hybrid

2.5
4
2WD
Gasoline
9FMXT02.52ZF
SUV
9.5
32
Honda Civic Hybrid
1.3
4
2WD
 Gasoline 9HNXV01.3CDH
Small Car
9.5
42
Mazda Tribute Hybrid
2.5
4
2WD
Gasoline
9FMXT02.52ZF
 SUV
9.5
32
Mercury Mariner Hybrid
2.5
4
2WD
Gasoline
 9FMXT02.52ZF
SUV
9.5
32

Nissan Altima Hybrid

2.5
4
2WD
Gasoline
9NSXV02.5G3A
Midsize Car
9.5
34
Toyota Camry Hybrid

2.4
4
2WD
Gasoline
9TYXV02.4HC3
Midsize Car
9.5
34

Toyota Prius

1.5
4
2WD
Gasoline
9TYXV01.5HC3
Midsize Car
9.5
46

 

Model Year 2008 Vehicles that may claim the Air Quality and Fuel Economy Tax Credit
Model Displacement Cyl Drive Fuel Underhood ID Veh Class Air Pollution Score Combined MPG

Ford Escape Hybrid

2.3
4
2WD
Gasoline
8FMXT02.32ZE
SUV
9.5
32
Honda Civic Hybrid
1.3
4
2WD
Gasoline
8HNXV01.3ZCP
Small Car
9.5
42

Mazda Tribute Hybrid

2.3
4
2WD
Gasoline
8FMXT02.32ZE
SUV
9.5
32
Mercury Mariner Hybrid

2.3
4
2WD
Gasoline
8FMXT02.32ZE
SUV
9.5
32

Nissan Altima Hybrid

2.5

 
4
2WD
Gasoline
8NSXV02.5G3A
Midsize Car
9.5
34
Toyota Camry Hybrid
2.4
4
2WD
Gasoline
8TYXV02.4HC3
Midsize Car
9.5
34

Toyota Prius

1.5
4
2WD
Gasoline
8TYXV01.5HC3
Midsize Car
9.5
46

 

Proof of purchase requirements for vehicles converted to clean fuels can be found in R307-121-4.

Converted Vehicles:

50 percent of the cost of equipment for conversion minus any grant received, up to $2,500 per vehicle registered in Utah if:

  1. It is to be fueled by propane, natural gas, or electricity;
  2. It is to be fueled by another fuel determined by the Air Quality Board to be as effective as the above listed fuels; or
  3. It will meet the clean fuel vehicle standards in the Clean Air Act; and
  4. A previous owner did not take the same credit.

Proof of purchase requirements for vehicles converted to natural gas or propane can be found in R307-121-5.

Proof of purchase requirements for vehicles converted to electricity can be found in R307-121-6.

 

 

Special Mobile Equipment Converted to Clean Fuels:

50 percent of the cost of equipment for conversion of special mobile equipment engine minus any grant received, up to maximum tax credit of $1,000 per special mobile equipment engine, if:

  1. It is to be fueled by propane, compressed natural gas, or electricity;
  2. It is to be fueled by another fuel determined by the Air Quality Board to be:
    • As effective as the above listed fuels, or
    • Substantially more effective in reducing air pollution than the fuel for which the engine was originally designed.
  3. A previous owner did not take the same credit.

Proof of purchase requirements for special mobile equipment converted to clean fuels can be found in R307-121-7.

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