Clean Fuel Vehicle Credit (UC º59-10-1009):
Complete form TC-40V, Clean Fuel Vehicle Tax Credit, with the Division of Air Quality approval stamp, verifying the credit is approved. Do not send form TC-40V with your return. Keep the form and all related documents with your records.
Utah taxpayers may claim a non-refundable tax credit for the purchase of qualified new vehicles or for the conversion of vehicles or engines to use clean burning fuels.
The credit may only be taken once per vehicle and must be claimed in the taxable year the vehicle or engine is purchased or converted. If the credit was taken by a previous owner, the current owner is not eligible to take the credit.
Four clean fuel vehicle credits are available. They are:
- $605 if you bought a new vehicle having less than 7,500 miles, and registered and titled for the first time in Utah. The vehicle must meet air and fuel economy standards set out in UC §59-10-1009.
- The lesser of $2,500 or 35% of the purchase price for a qualified vehicle fueled by compressed natural gas and registered in Utah.
- The lesser of $2,500 or 50% of the cost of conversion equipment (less any clean fuel grant received) for a vehicle registered in Utah. The equipment must convert the engine to:
- be fueled by propane, compressed natural gas, or electricity;
- be fueled by another fuel as effective as the above listed fuels, as determined by the Air Quality Board; or
- meet the clean-fuel vehicle standards in the federal Clean Air Act.
- The lesser of $1,000 or 50% of the cost of conversion of a special mobile equipment engine (less any clean fuel grant received), if the special mobile equipment engine is to be fueled by:
- propane, compressed natural gas, or electricity;
- another fuel determined by the Air Quality Board to be as effective as the above listed fuels; or
- another fuel determined by the Air Quality Board to be substantially more effective in reducing air pollution than the fuel for which the engine was originally designed.
Note: Any credit that is more than the tax liability may be carried forward as a credit for the next five years.