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Utah taxpayer support of CNG industry

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  • Utah taxpayer support of CNG industry

    The Utah Legislature is meeting to try to balance the state budget in uncertain economic times. The governor has made it clear that he wants to support the CNG infrastructure and make I-15 the CNG highway.

    Historically, tax credits in Utah have been provided to purchasers of used CNG vehicles, new vehicles and certified conversions.

    With the tax credit on used vehicles, we saw the pricing increase to at least $3000 above what one would expect to pay for the vehicle (think of the 8 year old CNG cavaliers that were selling for more that their original purchase price last summer). The result was large profits for some sellers, the inability for some to obtain financing, the pulling of CNG vehicles from other states into Utah and buyers with much more expensive vehicles than they needed to be.

    There is a finite number of used CNG vehicles. I think in Utah we have reached a critical mass of CNG vehicles and it is time to support infrastructure improvements. The tax credit is there to encourage people to use cleaner burning fuels for improved public health and environment. It is hard to burn CNG, the cleaner fuel, if the distance between stations is too great or pressures are too low.

    I believe we should continue to support certified CNG conversions by pushing for streamlining the conversion process. I also believe their should be incentives for new vehicles (this would keep the demand for these vehicles high and give the automakers more incentive to produce CNG vehicles - from their factory directly or through OEM certified contractors.

    Should monies spent for vehicle tax credits be shifted to support infrastructure improvement (increased capacity, additional stations, home refueling appliance credits, etc.)? If so, which credits should be eliminated to free up the monies (used, converted, new, or a combination).
    15
    Remove all vehicular tax credits
    0.00%
    0
    Remove credits on used vehicles
    26.67%
    4
    Remove credits on used & converted vehicles
    6.67%
    1
    Keep the tax credits the same
    60.00%
    9
    other (please comment)
    6.67%
    1
    Last edited by Luke; 01-31-2009, 10:57 AM.

  • #2
    Re: Utah taxpayer support of CNG industry

    They should only allow credits on new vehicles that have to sell at MSRP. And for conversions so that people can convert their current vehicles, which is expensive to do correctly. Better pumps and focus on keeping gas price low would be much more advantages to us all. I have posted this previously on this site last year...
    2000 Escalade (option 3 conversion) FOR SALE
    2004 F150 XLT (OEM conversion)
    2000 Camry (Awesome Car!!)

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    • #3
      Re: Utah taxpayer support of CNG industry

      Who's voting to keep the credits the same!!! are you CNG vehicle sellers!!! I was only able to get the vehicles I bought back down to a reasonalbe price AFTER the credit, it didn't save me anything as the sellers were selling for easily $2k-$3k above HIGH BLUE BOOK!! That's crazy people!!
      2000 Escalade (option 3 conversion) FOR SALE
      2004 F150 XLT (OEM conversion)
      2000 Camry (Awesome Car!!)

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      • #4
        Re: Utah taxpayer support of CNG industry

        The state and Federal Government should support and subsidize all CNG Conversions if they are safe and clean, New Cars, converted Used Cars. We also need to have support and subsidizies from the state and feds for all new CNG filling stations. Also lets keep the price of CNG low. Thats my wish list,
        Jim
        Jim Younkin
        www.younkincng.com

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        • #5
          Re: Utah taxpayer support of CNG industry

          Originally posted by Yroc View Post
          Who's voting to keep the credits the same!!! are you CNG vehicle sellers!!! I was only able to get the vehicles I bought back down to a reasonalbe price AFTER the credit, it didn't save me anything as the sellers were selling for easily $2k-$3k above HIGH BLUE BOOK!! That's crazy people!!
          Not everybody can afford a new vehicle or $10k to convert a vehicle. You can even get a decent OEM used car these days for well under the cost of a non-EPA approved conversion. The person working a couple of low wage jobs miles apart just to make ends meet needs the incentive to really make the CNG vehicles affordable so they can save money on their transportation. I made that plea to Rep. McKee on HB106 and the credit stayed in there for used vehicles.
          My experience is that CNG vehicle markups are higher than gasoline cars because of a couple of simple economic reasons:
          • 1. Limited supply - nice used cars are getting harder and harder to find.
          • 2. Risk - you don't know how much money it's going to take to get the car running on CNG when you buy it at an auction and it's not running on CNG. Reliable CNG mechanics aren't in great supply.
          2004 Toyota Avalon bi-fuel
          2013 Tesla Model S 85

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