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  • Utah clean fuel vehcile tax credits - how to get them

    The following information is outdated.
    Please click here for the official guidance from the State of Utah as to obtaining these credits

    Always check with your tax adviser
    before making any significant decisions based on tax incentives!

    Not all CNG vehicles brought into Utah are eligible for the maximum $2,500 tax credit.

    Outdated section follows:
    -------------------------------------------------------

    Utah income tax law provides for a credits on CNG, propane, or electric vehicles of:
    a)
    Fifty percent (50%) of the incremental cost of a new OEM vehicle minus any grant received, up to a maximum credit of $3,000 per vehicle registered in Utah, also

    b) Fifty percent (50%) of the cost of equipment for conversion minus any grant received, up to a maximum credit of $2,500 per vehicle registered in Utah.

    The vehicle must also meet the clean fuel vehicle standards of the Clean Air Act. Utah taxpayers may claim a nonrefundable 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. 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.

    Official state web site is here.
    FAQ's are here.

    -------------------------------------------------------
    Now, just how much of a credit should you put down on the income tax return?

    Well, it depends on what it cost to get the vehicle to run on the alternative fuel.

    For a conversion this is rather straightforward, since the cost of the equipment installed can be quantified by the shop that did your work. You generally should have no trouble spending $5,000 in tanks, high-pressure lines, etc. to max out at the $2,500 credit here. Note that for the Utah credit bi-fuel conversions are acceptable (the Federal credit must be dedicated CNG only). Also, you must have installed an EPA certified conversion and submit a copy of the EPA certificate of conformity to get your TC-40V stamped at the Division of Air Quality.

    For an off-the-assembly-line vehicle, you need to make a reasonable assumption as to the "incremental cost" for the alternative fueling system was at the time the vehicle was manufactured. The Utah Dept. of Environmental Quality has suggested to some CNG vehicle owners that they use resources such as the following web site to determine this figure:

    (I have attached to this discussion post a PDF printout of the web page in case the web link ever goes away)

    Examples:
    CNG Crown Victoria's incremental cost in 2001 was $2,830, tax credit = $1,415
    Bi-fuel Cavalier's incremental cost
    in 2001 was $5,406, tax credit = $2,703
    Honda Civic GX's incremental cost in 2001 was $7,910, tax credit = $3,000 (max),
    ... however in 1998 the Civic's incremental cost was $4,500 for a tax credit of $2,250 (see post #9 below)

    Our member lmlewis also posted this very useful bit of info for GM vehicle owners:

    If you need to document your OEM or incremental costs for tax purposes try the GM Media Archive & Vehicle Invoice Collection. Stacy Lillard at "vehicleinvoice@gmmediaarchive.com" or (734) 462-5543 # 163 who can supply it for you. It costs $50.00.


    -------------------------------------------------------

    Step 1: Ensure the vehicle has not already taken the credit in Utah.

    If you are purchasing a CNG vehicle from out of state you are probably going to be fine. However, it never hurts to check before you buy. The Division of Air Quality maintains a database of VIN numbers which have taken the credit so you can check with them by either phone, fax, or e-mail. I have found they turn around requests within 2 or 3 working days.

    Contact info is here:
    http://www.eere.energy.gov/afdc/prog...gi?afdc/4758/0


    Step 2: Get the vehicle registered in Utah.
    This means safety & emissions inspection (all fuel types if you have a bi-fuel vehicle), state sales/use tax payment, etc. The usual DMV root canal procedure


    Step 3: Get certification from the Division of Air Quality.
    Print out tax form TC-40V here (note that one form is required for each vehicle if you are like me and have multiple CNG vehicles):
    http://tax.utah.gov/forms/current/tc-40v.pdf

    ... then take all the required documents as found here:
    http://www.rules.utah.gov/publicat/c...7/r307-121.htm

    ... and get your DEQ stamp of approval.


    Step 4: File your income taxes
    Do not include form TC-40V -- this belongs in a safe place in case you get audited (and rumor has it the Tax Commission loves to audit these types of credits!!!).
    Attached Files
    Last edited by John Mitton; 04-03-2011, 04:38 PM. Reason: Added discussion on how to determine the incremental cost

  • John Mitton
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    The good news here is Utah House Bill 15 has passed both the House and Senate. If signed by the governor the vehicle incentive goes to $2,500 and can be taken at the point of sale (new car dealership or vehicle conversion facility). The dealer or converter then applies for a rebate from the Div of Air Quality.
    http://le.utah.gov/~2015/bills/static/HB0015.html

    Leave a comment:


  • Lakewood90712
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    Originally posted by wasatchm View Post
    I was reading up on the 2015 utah tax credits for alternative fuel vehicles. it appears there is a tax credit for 35 percent UP to $1500 for the purchase of an OEM manufactured natural gas vehicle. can someone tell me if this tax credit is for NEW VEHICLES purchases only. I sent an email to the appropriate state agency asking them to clarify. however, I have not heard back from them yet. I don't see any auto dealers or individuals selling used cng cars in this state advertising that state tax credits might be available if this vehicle is purchase. so I am guessing there are probably no state tax credits at this time (or for the 2015 tax year) for the purchase of any used OEM natural gas vehicles.

    thanks
    I think you can find the answers here http://www.cngutah.com/faq.php#credit

    Leave a comment:


  • wasatchm
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    I was reading up on the 2015 utah tax credits for alternative fuel vehicles. it appears there is a tax credit for 35 percent UP to $1500 for the purchase of an OEM manufactured natural gas vehicle. can someone tell me if this tax credit is for NEW VEHICLES purchases only. I sent an email to the appropriate state agency asking them to clarify. however, I have not heard back from them yet. I don't see any auto dealers or individuals selling used cng cars in this state advertising that state tax credits might be available if this vehicle is purchase. so I am guessing there are probably no state tax credits at this time (or for the 2015 tax year) for the purchase of any used OEM natural gas vehicles.

    thanks

    Leave a comment:


  • GoNatural
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    check this article about the grant and loan program for conversions:
    http://www.cleanfuels.utah.gov/grants/grantsintro.htm

    Leave a comment:


  • Adaptation
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    Thank you for that link, I don't know why I could not find that page I looked all over. So I'm reading the page about the tax credit and I get to the line that says "Conversion must be EPA certified to claim the Clean Fuel Vehicle Tax Credit." Is this still true, and didn't the EPA just relax there requirements about requiring certification of conversion kids considerably? I am trying to learn about the costs of converting a fleet of about 100 vehicles for a local company (converting over several years). We have our own mechanics (in a sister company) who do virtually all the servicing and repairs for the fleet, what training do they require before they can start installing the kits.

    Thanks,

    Leave a comment:


  • John Mitton
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    Here is the scoop on UT tax credits for converted vehicles:
    http://www.airquality.utah.gov/Plann.../converted.htm

    Leave a comment:


  • Adaptation
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    I went to the link and it doesn't say anything specific about conversions, it only mentions new cars. Is there still a $2500 matching credit for conversions?

    Leave a comment:


  • John Mitton
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    Got the top post updated with Utah DEQ's new website link, thanks.

    Leave a comment:


  • dezroute
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    I've tried clicking on the link at the beginning of this thread since it says the other info is outdated, but the link doesn't go to a page - only gives me an error message.

    Anyways, my husband and I purchased a 2002 bi-fuel Chevy Cavalier last August and were told by the dealer we'd get a tax credit. I've been searching on here and online for how to go about proving/claiming the credit. Can someone please point me in the right direction? I don't even know where to begin.
    Thanks!!

    Leave a comment:


  • Highmarker
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    Originally posted by Pclement View Post
    highmarker my parents are taking the credit on my car since they actually have to pay state taxes whereas I, being a student get my entire refund. They received a partial amount last year and I wanted to make sure they receive the final amount this year. You said that they just have to continue to fill out the carryover information on the same form? Can you go into a little more depth, I do recall filling out the form TC-40V rev. 7/08, but I don't think they had to submit anything with their taxes last year. Any help is much appreciated.
    Pclement,

    They don't have to submit anything to the Divison of Air Quality to have it stamped. They just continue to fill out the "carryover" information on Line 10 in columns A, B, and C on their TC-40V form. They will still have to fill out TC-40A part 4 and submit that with their TC-40 form.

    Leave a comment:


  • Ctown00
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    Originally posted by Ctown00 View Post
    Well the tax credit for 2010 is only $2,500. But people will be comparing the price to what they could get it for new. So I would try selling it for something reasonable. I just bought a 2009 with 2k miles and got it for under $17k and the Utah tax credit hasn't been used yet. So good luck.
    BTW Bruce, I would look at trying to use the tax credit and push to sell it in Colorado. They can get just over $6k in their state tax credit. They have the best incentives. That is where I bought mine from and why I got such a great deal.

    Leave a comment:


  • Ctown00
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    Well the tax credit for 2010 is only $2,500. But people will be comparing the price to what they could get it for new. So I would try selling it for something reasonable. I just bought a 2009 with 2k miles and got it for under $17k and the Utah tax credit hasn't been used yet. So good luck.

    Leave a comment:


  • Pclement
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    Originally posted by Highmarker View Post
    FYI,

    If your tax credit is carried over to another year, and the revision on your TC-40V form is 7/08, you don't need to resend it to the Division of Air Quality and have it signed/stamped again. Just continue to fill out the carryover information on the same form.
    highmarker my parents are taking the credit on my car since they actually have to pay state taxes whereas I, being a student get my entire refund. They received a partial amount last year and I wanted to make sure they receive the final amount this year. You said that they just have to continue to fill out the carryover information on the same form? Can you go into a little more depth, I do recall filling out the form TC-40V rev. 7/08, but I don't think they had to submit anything with their taxes last year. Any help is much appreciated.

    Leave a comment:


  • John Mitton
    replied
    Re: Utah clean fuel vehcile tax credits - how to get them

    You can post it in the Marketplace forum.
    Hope things pick up for you!

    Leave a comment:

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