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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).
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).
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