Special Mobile Equipment: Jan. 2014 – Dec. 2014 Clean Fuel Vehicle Tax Credit Rules

Special Mobile Equipment Converted to Clean Fuels

Taxpayers may claim a nonrefundable tax credit of fifty 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:

  • it is to be fueled by propane, compressed natural gas, or electricity;
  • it is to be fueled by another fuel determined by the Air Quality Board to be:
    • as effective as the above listed fuels; or
    • substantially more effective in reducing air pollution than the fuel for which the engine was originally designed; and
  • a previous owner did not take the same credit.

Required Documents

  • a description, including serial number, of the special mobile equipment for which credit is to be claimed;
  • an original or copy of the purchase order, customer invoice, or receipt that includes
    • the name of the taxpayer seeking the credit,
    • the serial number,
    • the date of conversion, and
    • the price of the conversion equipment installed on the special mobile equipment.

Proof of purchase requirements for special mobile equipment converted to clean fuels can be found in R307-121-6.