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After 2009 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 35% of the vehicle purchase price, up to $2,500, for an original equipment manufacturer compressed natural gas vehicle registered in Utah. Other new clean fuel vehicles that meet air quality and fuel economy standards may be eligible for a credit of $605. The state also provides a credit of up to $1,000 for special equipment converted to operate using a clean fuel, including propane, natural gas, or electricity. Those claiming the credit must provide required documentation. These incentives expire December 31, 2013. (Reference Utah Code 19-1-402, 59-7-605, and 59-10-1009)

If you have questions about the Clean Fuel Vehicle Tax Credit, please contact Mat Carlile at (801) 536-4136.

How to Claim the Clean Fuel Vehicle Tax Credit

Taxpayers may claim a non refundable credit on their individual income tax, corporate franchise tax, or fiduciary tax returns for the purchase or conversion of vehicles that use cleaner burning fuels. For a taxpayer to claim this credit, the Clean Fuel Vehicle Tax Credit Form TC-40V (45 KB) must be completely filled out, along with required documentation. Taxpayers can submit their completed TC40V and required document via FAX (801) 536-0085, Email, U.S. Mail (Utah Division of Air Quality, P.O. Box 144820, Salt Lake City, UT 84114-4820), or dropping them off at 195 North 1950 West Salt Lake City, Utah.

  • A separate form must be completed for each vehicle claimed.
  • The credit may only be taken once per vehicle. The Division of Air Quality maintains a database of VIN numbers which have taken the tax credit.
  • The vehicle must be certified and claimed for the taxable year in which the item is purchased or converted.
  • If the credit claimed exceeds the tax liability for a taxable year, the credit that exceeds the liability may be carried forward for up to five taxable years.