Utah Hydrogen Laws and Incentives
State Incentives
High Occupancy Vehicle (HOV) Lane Exemption
Vehicles with clean fuel license plates are authorized to travel in HOV lanes regardless of the number of occupants, to the extent authorized or permitted by federal law or federal regulation. The clean fuel plate must be purchased from a Utah Motor Vehicles office for a fee of $15. Until January 1, 2009, vehicle owners must also present a Clean Special Fuel Certificate. To be eligible for a clean fuel license plate, a vehicle must meet the definition of a clean fuel vehicle as defined in Utah Code 19-2-402. This incentive expires December 31, 2010. (Reference House Bill 106, 2008, and Utah Code 41-6a-702 and 63-55-241)
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Grants and Loans
The Utah Clean Fuels and Vehicle Technology Grant and Loan Program, funded through the Clean Fuels and Vehicle Technology Fund, provides grants to assist businesses and government entities in covering: 1) the cost of converting a vehicle to operate on clean fuels; 2) the incremental cost of purchasing an Original Equipment Manufacturer (OEM) clean fuel vehicle; and 3) the cost of retrofitting diesel vehicles with U.S. Environmental Protection Agency verified closed crankcase filtration devices, diesel oxidation catalysts, and/or diesel particulate filters. The Clean-Fuels Grant and Loan Program also provides loans for the cost of converting a vehicle to operate on a clean fuel, for the purchase of OEM clean fuel vehicle, and for the purchase of fueling equipment for public/private sector business and government vehicles. Finally, the program can provide grants and loans to serve as matching funds for federal and non-federal grants for the purpose of vehicles to operate on a clean fuel, purchasing OEM clean fuel vehicles, or retrofitting diesel vehicles. The Clean Fuels Grant and Loan Program is on hold pending final development of administrative rules. (Reference Utah Code 19-1-401 through 19-1-405)
Clean Fuel Vehicle Tax Credit
The state provides an income tax credit for 50% of the incremental cost (up to $3,000 maximum) of a clean fuel vehicle built by an Original Equipment Manufacturer (OEM) and/or an income tax credit for 50% of the cost (up to $2,500 maximum) of converting the vehicle to operate on an alternative fuel for vehicles purchased after January 1, 2001, and registered in Utah. If not previously used, the tax credit may be claimed on used vehicles. Tax credits are available for businesses and individuals, may be carried forward up to five years, and are not available for hybrid electric vehicles. Documentation must be provided as described in the Utah state tax form TC-40V. Effective January 1, 2009, the credit amount for OEM vehicles will decrease to 35% of the incremental cost (up to $2,500) for compressed natural gas vehicles registered in Utah; other clean fuel vehicles may be eligible for a credit of up to $750. (Reference House Bill 106, 2008, Utah Code 59-7-605 and 59-10-127)
State Laws and Regulations
Provision for Establishment of Alternative Fuel Use Mandate
The Utah Air Quality Board is authorized to mandate fleet vehicles to use clean fuels, if such a mandate is necessary in order to meet national air quality standards. (Reference Utah Code 19-2-105.3)
Utilities/Private Incentives
Incentive for Airport Alternative Fuels Use
The Salt Lake City Department of Airports provides incentives to commercial ground transportation providers who purchase and operate clean fuel vehicles exclusively using approved clean fuels (as designated by State of Utah Statute 59-13-102). Eligible vehicles are those that operate on compressed natural gas, propane, hydrogen, electricity, or hybrid electric vehicles. The incentives are in the form of a credit against ground transportation fees. Incentive credit amounts are $2,500 for each Original Equipment Manufacturer vehicle or certified vehicle converted to operate on an alternative fuel. (Reference Salt Lake City Department of Airports Clean Fuel Policy Number 10.07.100)
