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. Examples include 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.

How to Apply

To claim the Alternative Fuel Heavy-Duty Vehicle Tax Credit, follow these steps:

1. Reserve Your Tax Credit
   Before purchasing an eligible vehicle, you must reserve your tax credit by using the Reserve Tax Credit form.
2. Submit Required Documentation After Purchase
   After purchasing the eligible vehicle, you have 180 calendar days from the date of your reservation approval to submit all required documentation (see below). Failure to submit within this timeframe will result in forfeiture of the reserved tax credit.

Annual Limit on Number of Tax Credits

Please note: There is a limit to how many Alternative Fuel Heavy-Duty Vehicle Tax Credits a taxpayer may claim each year.

• Businesses may claim up to 18 credits per tax year under Utah Code §59-7-618.1(3).
• Individuals may claim up to 18 credits per tax year under Utah Code §59-10-1033.1(3).

Applications submitted beyond these limits cannot be approved, even if all other requirements are met.

If you have questions about how this limit affects your application, please reach out to us before submitting.

Required Documentation

Upload the following documents using the Claim Tax Credit form.

1. Proof that the vehicle is an Original Equipment Manufacturer alternative-fuel, heavy-duty vehicle (must be natural gas, 100% electric drivetrain, or hydrogen-electric drivetrain), using one of the following:
   1. A copy of the window sticker or equivalent manufacturer documentation that includes the Vehicle Identification Number (VIN) and shows the vehicle’s qualifying features; or
   2. A signed statement from an Automotive Service Excellence (ASE)-certified technician or Canadian Standard Association (CSA) America CNG Fuel System Inspector that includes:
      1. The Vehicle Identification Number (VIN) of the vehicle;
      2. The technician’s ASE or CSA certification number; and
      3. A statement confirming the vehicle is:
         1. An OEM natural gas vehicle;
         2. 100% electric drivetrain, or
         3. hydrogen-electric drivetrain
2. Purchase documentation (purchase order, invoice, or receipt) that includes:
   1. The name of the qualified taxpayer;
   2. The seller’s name;
   3. The VIN of the vehicle;
   4. The purchase date; and
   5. The purchase price.
3. A copy of the current Utah vehicle registration in the name of the taxpayer applying for the credit.
   When submitting, you’ll be required to enter the application number provided during the reservation step.
   Submit your documentation using the Claim Tax Credit form.

Contact

Please contact Mat Carlile (mcarlile@utah.gov) or (385) 306-6535 with any questions.