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Clean Fuel Vehicle Credit (Code 05)
To encourage individuals and businesses to reduce vehicle-related air pollution, the state offers a tax credit of up to $3,000 for purchase of a new vehicle manufactured to use a clean fuel that is registered in Utah 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 state income tax due; any tax credit in excess of tax due may not be refunded. To qualify you must have: - Purchased a vehicle registered in Utah, for which this credit has not been taken, that was manufactured to use propane, natural gas, or electricity, or - Purchased and installed equipment to convert a vehicle registered in Utah to use propane, natural gas, or electricity. Note: A hybrid vehicle qualifies only if the same vehicle model is manufactured without the clean-fuel fueling system and the hybrid vehicle otherwise meets the requirements for a clean fuel vehicle. To take this credit, complete form TC-40V, Clean Fuel Vehicle Tax Credit, which must be certified by the Department of Environmental Qualitys Division of Air Quality, verifying the credit has been approved. Do not submit this form; 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 incremental cost of a new vehicle, up to a maximum tax credit of $3,000, or - 50% of the cost of the equipment for conversion, up to a maximum tax credit of $2,500, or - 50% of the cost of the equipment for conversion of a special fuel mobile equipment engine, up to a maximum tax credit of $1,000. Contact:
Division of Air Quality Department of Environmental Quality
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