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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.
Click here for information regarding purchases before January 1, 2009.
Click here for answers to some commonly asked questions about the Clean Fuel Vehicle Tax Credit.
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).
Click here for the TC-40V for vehicles purchased on or after January 1, 2009.
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:
35 percent of the vehicle's purchase price minus any grant received, up to $2,500 per vehicle registered in Utah if:
Proof of purchase requirements for OEM vehicles can be found in R307-121-3.
$750 for the Original purchase of a new vehicle that is not fueled by compressed natural gas if the vehicle:
The following is a list of vehicles that may be eligible to receive the Air Quality and Fuel Economy Standards 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 | 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 | Displacement | Cyl | Drive | Fuel | Underhood ID | Veh Class | Air Pollution Score | Combined MPG | |
|---|---|---|---|---|---|---|---|---|---|
Ford Escape Hybrid |
2.3 |
4 |
2WD |
Gasoline |
|
SUV |
9.5 |
32 |
|
Honda Civic Hybrid |
1.3 |
4 |
2WD |
Gasoline |
|
Small Car |
9.5 |
42 |
|
Mazda Tribute Hybrid |
2.3 |
4 |
2WD |
Gasoline |
|
SUV |
9.5 |
32 |
|
Mercury Mariner Hybrid |
2.3 |
4 |
2WD |
Gasoline |
|
SUV |
9.5 |
32 |
|
Nissan Altima Hybrid |
2.5
|
4 |
2WD |
Gasoline |
|
Midsize Car |
9.5 |
34 |
|
Toyota Camry Hybrid |
2.4 |
4 |
2WD |
Gasoline |
|
Midsize Car |
9.5 |
34 |
|
Toyota Prius |
1.5 |
2WD |
Gasoline |
|
Midsize Car |
9.5 |
46 |
Proof of purchase requirements for vehicles converted to clean fuels can be found in R307-121-4.
50 percent of the cost of equipment for conversion minus any grant received, up to $2,500 per vehicle registered in Utah if:
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.
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:
Proof of purchase requirements for special mobile equipment converted to clean fuels can be found in R307-121-7.
If you have more questions about the Clean Fuel Vehicle Tax Credit please contact Mat Carlile at 536-4136.