59-10-1009 — Definitions -- Cleaner burning fuels tax credit.
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59-10-1009. Definitions -- Cleaner burning fuels tax credit.
(1) As used in this section:
(a) "Board" means the Air Quality Board created in Title 19, Chapter 2, Air Conservation Act.
(b) "Certified by the board" means that:
(i) a motor vehicle on which conversion equipment has been installed meets the following criteria:
(A) before the installation of conversion equipment, the vehicle does not exceed the emission cut points for a transient test driving cycle, as specified in 40 C.F.R. Part 51, Appendix E to Subpart S, or an equivalent test for the make, model, and year of the vehicle;
(B) the motor vehicle's emissions of regulated pollutants, when operating on fuels listed in Subsection (2)(a)(ii)(A) or (2)(a)(ii)(B), is less than the emissions were before the installation of conversion equipment; and
(C) a reduction in emissions under Subsection (1)(b)(i)(B) is demonstrated by:
(I) certification of the conversion equipment by the federal Environmental Protection Agency or by a state whose certification standards are recognized by the board;
(II) testing the motor vehicle, before and after installation of the conversion equipment, in accordance with 40 C.F.R. Part 86, Control Emissions from New and In-use Highway Vehicles and Engines, using all fuels the motor vehicle is capable of using; or
(III) any other test or standard recognized by board rule; or
(ii) special mobile equipment on which conversion equipment has been installed meets the following criteria:
(A) the special mobile equipment's emissions of regulated pollutants, when operating on fuels listed in Subsection (2)(a)(iii)(A) or (2)(a)(iii)(B), is less than the emissions were before the installation of conversion equipment; and
(B) a reduction in emissions under Subsection (1)(b)(ii)(A) is demonstrated by:
(I) certification of the conversion equipment by the federal Environmental Protection Agency or by a state whose certification standards are recognized by the board; or
(II) any other test or standard recognized by the board.
(c) "Clean fuel grant" means a grant a claimant, estate, or trust receives under Title 19, Chapter 1, Part 4, Clean Fuels Conversion Program Act, for reimbursement of a portion of the incremental cost of the OEM vehicle or the cost of conversion equipment.
(d) "Conversion equipment" means equipment referred to in Subsection (2)(a)(ii) or (2)(a)(iii).
(e) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
(f) "Incremental cost" has the same meaning as in Section 19-1-402.
(g) "OEM vehicle" has the same meaning as in Section 19-1-402.
(h) "Special mobile equipment":
(i) means any mobile equipment or vehicle not designed or used primarily for the transportation of persons or property; and
(ii) includes construction or maintenance equipment.
(2) (a) Except as provided in Subsection (2)(b), for taxable years beginning on or after January 1, 2001, but beginning on or before December 31, 2010, a claimant, estate, or trust may claim a nonrefundable tax credit against tax otherwise due under this chapter in an amount equal to:
(i) 50% of the incremental cost of an OEM vehicle registered in Utah minus the amount of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if the vehicle:
(A) is fueled by propane, natural gas, or electricity;
(B) is fueled by other fuel the board determines annually on or before July 1 to be at least as effective in reducing air pollution as fuels under Subsection (2)(a)(i)(A); or
(C) meets the clean-fuel vehicle standards in the federal Clean Air Act Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.;
(ii) 50% of the cost of equipment for conversion, if certified by the board, of a motor vehicle registered in Utah minus the amount of any clean fuel conversion grant received, up to a maximum tax credit of $2,500 per vehicle, if the motor vehicle:
(A) is to be fueled by propane, natural gas, or electricity;
(B) is to be fueled by other fuel the board determines annually on or before July 1 to be at least as effective in reducing air pollution as fuels under Subsection (2)(a)(ii)(A); or
(C) will meet the federal clean fuel vehicle standards in the federal Clean Air Act Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.; and
(iii) 50% of the cost of equipment for conversion, if certified by the board, of a special mobile equipment engine minus the amount of any clean fuel conversion grant received, up to a maximum tax credit of $1,000 per special mobile equipment engine, if the special mobile equipment is to be fueled by:
(A) propane, natural gas, or electricity; or
(B) other fuel the board determines annually on or before July 1 to be:
(I) at least as effective in reducing air pollution as the fuels under Subsection (2)(a)(iii)(A); or
(II) substantially more effective in reducing air pollution than the fuel for which the engine was originally designed.
(b) Notwithstanding Subsection (2)(a), for taxable years beginning on or after January 1, 2006, a claimant, estate, or trust may not claim a tax credit under this section with respect to an electric-hybrid vehicle.
(3) A claimant, estate, or trust shall provide proof of the purchase of an item for which a tax credit is allowed under this section by:
(a) providing proof to the board in the form the board requires by rule;
(b) receiving a written statement from the board acknowledging receipt of the proof; and
(c) retaining the written statement described in Subsection (3)(b).
(4) Except as provided by Subsection (5), the tax credit under this section is allowed only:
(a) against any Utah tax owed in the taxable year by the claimant, estate, or trust;
(b) in the taxable year in which the item is purchased for which the tax credit is claimed; and
(c) once per vehicle.
(5) If the amount of a tax credit claimed by a claimant, estate, or trust under this section exceeds the claimant's, estate's, or trust's tax liability under this chapter for a taxable year, the amount of the tax credit exceeding the tax liability may be carried forward for a period that does not exceed the next five taxable years.
(1) As used in this section:
(a) "Board" means the Air Quality Board created in Title 19, Chapter 2, Air Conservation Act.
(b) "Certified by the board" means that:
(i) a motor vehicle on which conversion equipment has been installed meets the following criteria:
(A) before the installation of conversion equipment, the vehicle does not exceed the emission cut points for a transient test driving cycle, as specified in 40 C.F.R. Part 51, Appendix E to Subpart S, or an equivalent test for the make, model, and year of the vehicle;
(B) the motor vehicle's emissions of regulated pollutants, when operating on fuels listed in Subsection (2)(a)(ii)(A) or (2)(a)(ii)(B), is less than the emissions were before the installation of conversion equipment; and
(C) a reduction in emissions under Subsection (1)(b)(i)(B) is demonstrated by:
(I) certification of the conversion equipment by the federal Environmental Protection Agency or by a state whose certification standards are recognized by the board;
(II) testing the motor vehicle, before and after installation of the conversion equipment, in accordance with 40 C.F.R. Part 86, Control Emissions from New and In-use Highway Vehicles and Engines, using all fuels the motor vehicle is capable of using; or
(III) any other test or standard recognized by board rule; or
(ii) special mobile equipment on which conversion equipment has been installed meets the following criteria:
(A) the special mobile equipment's emissions of regulated pollutants, when operating on fuels listed in Subsection (2)(a)(iii)(A) or (2)(a)(iii)(B), is less than the emissions were before the installation of conversion equipment; and
(B) a reduction in emissions under Subsection (1)(b)(ii)(A) is demonstrated by:
(I) certification of the conversion equipment by the federal Environmental Protection Agency or by a state whose certification standards are recognized by the board; or
(II) any other test or standard recognized by the board.
(c) "Clean fuel grant" means a grant a claimant, estate, or trust receives under Title 19, Chapter 1, Part 4, Clean Fuels Conversion Program Act, for reimbursement of a portion of the incremental cost of the OEM vehicle or the cost of conversion equipment.
(d) "Conversion equipment" means equipment referred to in Subsection (2)(a)(ii) or (2)(a)(iii).
(e) "Electric-hybrid vehicle" is as defined in 42 U.S.C. Sec. 13435.
(f) "Incremental cost" has the same meaning as in Section 19-1-402.
(g) "OEM vehicle" has the same meaning as in Section 19-1-402.
(h) "Special mobile equipment":
(i) means any mobile equipment or vehicle not designed or used primarily for the transportation of persons or property; and
(ii) includes construction or maintenance equipment.
(2) (a) Except as provided in Subsection (2)(b), for taxable years beginning on or after January 1, 2001, but beginning on or before December 31, 2010, a claimant, estate, or trust may claim a nonrefundable tax credit against tax otherwise due under this chapter in an amount equal to:
(i) 50% of the incremental cost of an OEM vehicle registered in Utah minus the amount of any clean fuel grant received, up to a maximum tax credit of $3,000 per vehicle, if the vehicle:
(A) is fueled by propane, natural gas, or electricity;
(B) is fueled by other fuel the board determines annually on or before July 1 to be at least as effective in reducing air pollution as fuels under Subsection (2)(a)(i)(A); or
(C) meets the clean-fuel vehicle standards in the federal Clean Air Act Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.;
(ii) 50% of the cost of equipment for conversion, if certified by the board, of a motor vehicle registered in Utah minus the amount of any clean fuel conversion grant received, up to a maximum tax credit of $2,500 per vehicle, if the motor vehicle:
(A) is to be fueled by propane, natural gas, or electricity;
(B) is to be fueled by other fuel the board determines annually on or before July 1 to be at least as effective in reducing air pollution as fuels under Subsection (2)(a)(ii)(A); or
(C) will meet the federal clean fuel vehicle standards in the federal Clean Air Act Amendments of 1990, 42 U.S.C. Sec. 7521 et seq.; and
(iii) 50% of the cost of equipment for conversion, if certified by the board, of a special mobile equipment engine minus the amount of any clean fuel conversion grant received, up to a maximum tax credit of $1,000 per special mobile equipment engine, if the special mobile equipment is to be fueled by:
(A) propane, natural gas, or electricity; or
(B) other fuel the board determines annually on or before July 1 to be:
(I) at least as effective in reducing air pollution as the fuels under Subsection (2)(a)(iii)(A); or
(II) substantially more effective in reducing air pollution than the fuel for which the engine was originally designed.
(b) Notwithstanding Subsection (2)(a), for taxable years beginning on or after January 1, 2006, a claimant, estate, or trust may not claim a tax credit under this section with respect to an electric-hybrid vehicle.
(3) A claimant, estate, or trust shall provide proof of the purchase of an item for which a tax credit is allowed under this section by:
(a) providing proof to the board in the form the board requires by rule;
(b) receiving a written statement from the board acknowledging receipt of the proof; and
(c) retaining the written statement described in Subsection (3)(b).
(4) Except as provided by Subsection (5), the tax credit under this section is allowed only:
(a) against any Utah tax owed in the taxable year by the claimant, estate, or trust;
(b) in the taxable year in which the item is purchased for which the tax credit is claimed; and
(c) once per vehicle.
(5) If the amount of a tax credit claimed by a claimant, estate, or trust under this section exceeds the claimant's, estate's, or trust's tax liability under this chapter for a taxable year, the amount of the tax credit exceeding the tax liability may be carried forward for a period that does not exceed the next five taxable years.
Renumbered and Amended by Chapter 223, 2006 General Session