The state provides an income tax credit for the qualified purchase of a natural gas, a 100% electric, or a hydrogen-electric heavy-duty vehicle which is defined in 59-7-618.1 and 59-10-1033.1 UCA as a commercial category 7 or 8 vehicle that has never been titled or registered. Class 7 and Class 8 vehicles are classified by the gross vehicle weight rating, which is also known as their GVWR. A Class 7 vehicle has a GVWR between 26,001 and 33,000 pounds. A Class 8 vehicle has a GVWR higher than 33,000 pounds. These vehicles usually have three axles, but some will have five axles in order to haul a trailer with substantial weight on it. Some examples would be a 5-axle tractor-trailer (Semi or 18-wheeler), cement trucks, dump trucks, and refuse haulers. Operators of Class 7 and 8 trucks must have a commercial driver’s license, also called a CDL.
The Utah Legislature authorized the credit during the 2021 General Session for tax year 2021 through 2030. The following table shows the tax credit for each tax year.
Taxpayers are required to complete the Application to Reserve a Heavy-Duty Vehicle Tax Credit (18 KB) to reserve a qualified heavy-duty vehicle tax credit. The Division will notify the taxpayer of the status of their application. If the application is approved, the notification will indicate the date by which the taxpayer will need to provide the required documentation found below. The successful applicants will have 180 calendar days after the approval of the application to provide the following items or the tax credit will no longer be reserved for the taxpayer:
- a copy of the motor vehicle’s window sticker, which includes its Vehicle Identification Number (VIN), or equivalent manufacturer’s documentation showing that the heavy-duty vehicle is an Original Equipment Manufacturer (OEM ) natural gas vehicle, 100% electric, or a hydrogen-electric vehicle; or
- a signed statement by either an Automotive Service Excellence (ASE)-certified technician or Canadian Standards Association (CSA) America CNG Fuel System Inspector that includes the VIN, the technician’s ASE or CSA America certification number, and states that the heavy-duty vehicle is an OEM natural gas vehicle;
- an original or copy of the purchase order, customer invoice, or receipt that includes:
- the name of the qualified taxpayer seeking the credit,
- the name of the seller of the heavy-duty vehicle,
- the VIN,
- purchase date, and
- price of the heavy-duty vehicle;
- a copy of the current Utah vehicle registration in the name of the qualified taxpayer seeking the credit; and
- the certification required under Subsection 59-7-618.1(2)(b) and 59-10-1033.1(2)(b).