2023 Utah Code › Title 59 - Revenue and Taxation › Chapter 10 - Individual Income Tax Act › Part 10 - Nonrefundable Tax Credit Act › Section 1033.1 - Tax credit related to alternative fuel heavy duty vehicles.

Affected by 63I-1-259 on 7/1/2029
Effective 5/5/2021
59-10-1033.1.
Tax credit related to alternative fuel heavy duty vehicles.
(1) As used in this section:
(a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air Conservation Act.
(b) "Director" means the director of the Division of Air Quality appointed under Section 19-2-107.
(c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to vehicle classifications established by the Federal Highway Administration.
(d) "Natural gas" includes compressed natural gas and liquified natural gas.
(e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
(i) has never been titled or registered and has been driven less than 7,500 miles; and
(ii) is fueled by natural gas, has a 100% electric drivetrain, or has a hydrogen-electric drivetrain.
(f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
(g) "Qualified taxpayer" means a claimant, estate, or trust that:
(i) purchases a qualified heavy duty vehicle; and
(ii) receives a tax credit certificate from the director.
(h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and owned by a single claimant, estate, or trust.
(i) "Tax credit certificate" means a certificate issued by the director certifying that a claimant, estate, or trust is entitled to a tax credit as provided in this section and stating the amount of the tax credit.
(2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise due under this chapter:
(a) in an amount equal to:
(i) $15,000, if the qualified purchase occurs during calendar year 2021;
(ii) $13,500, if the qualified purchase occurs during calendar year 2022;
(iii) $12,000, if the qualified purchase occurs during calendar year 2023;
(iv) $10,500, if the qualified purchase occurs during calendar year 2024;
(v) $9,000, if the qualified purchase occurs during calendar year 2025;
(vi) $7,500, if the qualified purchase occurs during calendar year 2026;
(vii) $6,000, if the qualified purchase occurs during calendar year 2027;
(viii) $4,500, if the qualified purchase occurs during calendar year 2028;
(ix) $3,000, if the qualified purchase occurs during calendar year 2029; and
(x) $1,500, if the qualified purchase occurs during calendar year 2030; and
(b) if the qualified taxpayer certifies under oath that over 50% of the miles that the heavy duty vehicle that is the subject of the qualified purchase will travel annually will be within the state.
(3)
(a) Except as provided in Subsection (3)(b), a claimant, estate, or trust may not submit an application for, and the director may not issue to the claimant, estate, or trust, a tax credit certificate under this section in any taxable year for a qualified purchase if the director has already issued tax credit certificates to the claimant, estate, or trust for 10 qualified purchases in the same taxable year.
(b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of tax credits under Subsection (5) has not been claimed, a claimant, estate, or trust may submit an application for, and the director may issue to the claimant, estate, or trust, one or more tax credit certificates for up to eight additional qualified purchases, even if the director has already issued to that claimant, estate, or trust tax credit certificates for the maximum number of qualified purchases allowed under Subsection (3)(a).
(4)
(a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits available under this section for qualified taxpayers with a small fleet.
(b) Subsection (4)(a) does not prevent a claimant, estate, or trust from submitting an application for, or the director from issuing, a tax credit certificate if, before October 1, qualified taxpayers with a small fleet have not reserved under Subsection (5)(b) tax credits for the full amount reserved under Subsection (4)(a).
(5)
(a) The aggregate annual total amount of tax credits represented by tax credit certificates that the director issues under this section and Section 59-7-618.1 may not exceed $500,000.
(b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to establish a process under which a claimant, estate, or trust may reserve a potential tax credit under this section for a limited time to allow the claimant, estate, or trust to make a qualified purchase with the assurance that the aggregate limit under Subsection (5)(a) will not be met before the claimant, estate, or trust is able to submit an application for a tax credit certificate.
(6)
(a)
(i) A claimant, estate, or trust wishing to claim a tax credit under this section shall, using forms the board requires by rule:
(A) submit to the director an application for a tax credit;
(B) provide the director proof of a qualified purchase; and
(C) submit to the director the certification under oath required under Subsection (2)(b).
(ii) Upon receiving the application, proof, and certification required under Subsection (6)(a)(i), the director shall provide the claimant, estate, or trust a written statement from the director acknowledging receipt of the proof.
(b) If the director determines that a claimant, estate, or trust qualifies for a tax credit under this section, the director shall:
(i) determine the amount of tax credit the claimant, estate, or trust is allowed under this section; and
(ii) provide the claimant, estate, or trust with a written tax credit certificate:
(A) stating that the claimant, estate, or trust has qualified for a tax credit; and
(B) showing the amount of tax credit for which the claimant, estate, or trust has qualified under this section.
(c) A qualified taxpayer shall retain the tax credit certificate.
(d) The director shall at least annually submit to the commission a list of all qualified taxpayers to which the director has issued a tax credit certificate and the amount of each tax credit represented by the tax credit certificates.
(7) The tax credit under this section is allowed only:
(a) against a tax owed under this chapter in the taxable year by the qualified taxpayer;
(b) for the taxable year in which the qualified purchase occurs; and
(c) once per vehicle.
(8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this section to another person.
(9) If the qualified taxpayer receives a tax credit certificate under this section that allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this chapter for a taxable year, the qualified taxpayer may carry forward the amount of the tax credit that exceeds the tax liability for a period that does not exceed the next five taxable years.
Enacted by Chapter 371, 2021 General Session