Jan. 1 2015 – Dec. 31 2016 Clean Fuel Vehicle Tax Credit Rules

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

  • The State provides an income tax credit of $1,000 for the original purchase of new qualifying Plug-in hybrid vehicles registered in Utah. The state provides an income tax credit of 35% of the vehicle purchase price, up to $1,500, for an original equipment manufacturer natural gas, propane, or qualifying electric vehicle registered in Utah. Learn more about these credits.
  • The State also provides a credit for a leased vehicle on a prorated basis up to $1,000 for Plug-in hybrid and $1,500 for natural gas, propane, or electric vehicles registered in Utah. Learn more about these credits.
  • The State also provides an income tax credit of 50% of the cost of equipment for conversion, up to $1,500, for vehicle that have been converted to run on natural gas, propane or electricity. Learn more about these credits.
  • The State also provides a credit of up to $1,000 for special equipment converted to operate using propane, natural gas, or electricity. Learn more about these credits.
  • The State provides an income tax credit of $750 for the original purchase of a new qualifying electric motorcycle. The State also provides a credit for a leased vehicle on a prorated basis up to $750 for a qualifying electric motorcycle. Learn more about these credits.

All credits are for the taxable year in which the vehicle was purchased, leased, or converted.

Those claiming the credit must complete a TC40V (513 KB) and provide all required documentation. Lists of all required documents are listed in the corresponding links above.

These Clean Fuel Vehicle Tax incentives expire December 31, 2016.

If you have questions about the Clean Fuel Vehicle Tax Credit, please contact Mat Carlile at (801) 536-4116.