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7 LONG TITLE
8 General Description:
9 This bill amends the corporate and individual heavy duty vehicle tax credits.
10 Highlighted Provisions:
11 This bill:
12 ▸ clarifies that the corporate tax credit is nonrefundable;
13 ▸ amends definitions;
14 ▸ removes references to qualified conversions;
15 ▸ modifies the definition of a "qualified heavy duty vehicle" to include heavy duty
16 vehicles that have hydrogen-electric and electric drivetrains for purposes of
17 receiving a corporate or individual income tax credit; and
18 ▸ makes technical and conforming changes.
19 Money Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 This bill provides retrospective operation.
23 Utah Code Sections Affected:
24 AMENDS:
25 59-7-618, as last amended by Laws of Utah 2016, Chapter 375
26 59-10-1033, as last amended by Laws of Utah 2016, Chapter 375
27
28 Be it enacted by the Legislature of the state of Utah:
29 Section 1. Section 59-7-618 is amended to read:
30 59-7-618. Tax credit related to alternative fuel heavy duty vehicles.
31 (1) As used in this section:
32 (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
33 Conservation Act.
34 (b) "Director" means the director of the Division of Air Quality appointed under
35 Section 19-2-107.
36 [
37 to vehicle classifications established by the Federal Highway Administration.
38 [
39 [
40 (i) has never been titled or registered and has been driven less than 7,500 miles; and
41 (ii) is fueled by natural gas , has a 100% electric drivetrain, or has a hydrogen-electric
42 drivetrain .
43 [
44 [
45 (i) purchases a qualified heavy duty vehicle; and
46 (ii) receives a tax credit certificate from the [
47 [
48 owned by a single taxpayer.
49 [
50 certifying that a taxpayer is entitled to a tax credit as provided in this section and stating the
51 amount of the tax credit.
52 (2) [
53 may claim a nonrefundable tax credit against tax otherwise due under this chapter or Chapter 8,
54 Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate Franchise or
55 Income Tax Act:
56 (a) in an amount equal to:
57 [
58
59 (i) $25,000, if the qualified purchase of a natural gas heavy duty vehicle occurs during
60 calendar year 2015 or calendar year 2016;
61 (ii) $25,000, if the qualified purchase occurs during calendar year 2017;
62 [
63 [
64 [
65 (b) if the qualified taxpayer certifies under oath that over 50% of the miles that the
66 heavy duty vehicle that is the subject of the qualified purchase will travel annually will be
67 within the state.
68 (3) (a) Except as provided in Subsection (3)(b), a taxpayer may not submit an
69 application for, and the [
70 under this section in any taxable year for a [
71 director has already issued tax credit certificates to the taxpayer for 10 [
72 purchases in the same taxable year.
73 (b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
74 tax credits under Subsection (5) has not been claimed, a taxpayer may submit an application
75 for, and the [
76 to eight additional [
77 issued to that taxpayer tax credit certificates for the maximum number of [
78 purchases allowed under Subsection (3)(a).
79 (4) (a) Subject to Subsection (4)(b), the [
80 credits available under this section for qualified taxpayers with a small fleet.
81 (b) Subsection (4)(a) does not prevent a taxpayer from submitting an application for, or
82 the [
83 taxpayers with a small fleet have not reserved under Subsection (5)(b) tax credits for the full
84 amount reserved under Subsection (4)(a) [
85
86 (5) (a) The aggregate annual total amount of tax credits represented by tax credit
87 certificates that the [
88
89
90 (b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
91 Rulemaking Act, make rules to establish a process [
92 reserve a potential tax credit under this section for a limited time to allow the taxpayer to make
93 a [
94 (5)(a) will not be met before the taxpayer is able to submit an application for a tax credit
95 certificate.
96 (6) (a) (i) A taxpayer wishing to claim a tax credit under this section shall, using forms
97 the board requires by rule:
98 (A) submit to the [
99 (B) provide the [
100 (C) submit to the [
101 Subsection (2)(b).
102 (ii) Upon receiving the application, proof, and certification required under Subsection
103 (6)(a)(i), the [
104 director acknowledging receipt of the proof.
105 (b) If the [
106 section, the [
107 (i) determine the amount of tax credit the taxpayer is allowed under this section; and
108 (ii) provide the [
109 (A) stating that the taxpayer has qualified for a tax credit; and
110 (B) showing the amount of tax credit for which the taxpayer has qualified under this
111 section.
112 (c) A qualified taxpayer shall retain the tax credit certificate.
113 (d) The [
114 qualified taxpayers to [
115 and the amount of each tax credit represented by the tax credit certificates.
116 (7) The tax credit under this section is allowed only:
117 (a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
118 Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year
119 by the qualified taxpayer;
120 (b) for the taxable year in which the [
121 (c) once per vehicle.
122 (8) A [
123 certificate under this section to another person.
124 (9) If the [
125
126 [
127 Tax on Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, for
128 a taxable year, the qualified taxpayer may carry forward the amount of the tax credit
129 [
130 exceed the next five taxable years.
131 (10) (a) In accordance with any rules prescribed by the commission under Subsection
132 (10)(b), the Division of Finance shall transfer at least annually from the General Fund into the
133 Education Fund the aggregate amount of all tax credits claimed under this section.
134 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
135 commission may make rules for making a transfer from the General Fund into the Education
136 Fund as required by Subsection (10)(a).
137 Section 2. Section 59-10-1033 is amended to read:
138 59-10-1033. Tax credit related to alternative fuel heavy duty vehicles.
139 (1) As used in this section:
140 (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
141 Conservation Act.
142 (b) "Director" means the director of the Division of Air Quality appointed under
143 Section 19-2-107.
144 [
145 to vehicle classifications established by the Federal Highway Administration.
146 [
147 [
148 (i) has never been titled or registered and has been driven less than 7,500 miles; and
149 (ii) is fueled by natural gas[
150 hydrogen-electric drivetrain.
151 [
152 [
153 [
154 (i) purchases a qualified heavy duty vehicle; and
155 (ii) receives a tax credit certificate from the [
156 [
157 owned by a single claimant, estate, or trust.
158 [
159 certifying that a claimant, estate, or trust is entitled to a tax credit as provided in this section
160 and stating the amount of the tax credit.
161 (2) [
162 may claim a nonrefundable tax credit against tax otherwise due under this chapter:
163 (a) in an amount equal to:
164 [
165
166 (i) $25,000, if the qualified purchase of a natural gas heavy duty vehicle occurs during
167 calendar year 2015 or calendar year 2016;
168 (ii) $25,000, if the qualified purchase occurs during calendar year 2017;
169 [
170 [
171 [
172 (b) if the [
173 50% of the miles that the heavy duty vehicle that is the subject of the qualified purchase [
174
175 (3) (a) Except as provided in Subsection (3)(b), a claimant, estate, or trust may not
176 submit an application for, and the [
177 trust, a tax credit certificate under this section in any taxable year for a [
178 purchase if the [
179 or trust for 10 [
180 (b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
181 tax credits under Subsection (5) has not been claimed, a claimant, estate, or trust may submit
182 an application for, and the [
183 more tax credit certificates for up to eight additional [
184 the [
185 the maximum number of [
186 (4) (a) Subject to Subsection (4)(b), the [
187 credits available under this section for [
188 small fleet.
189 (b) Subsection (4)(a) does not prevent a claimant, estate, or trust from submitting an
190 application for, or the [
191 October 1, qualified taxpayers with a small fleet have not reserved under Subsection (5)(b) tax
192 credits for the full amount reserved under Subsection (4)(a) [
193
194 (5) (a) The aggregate annual total amount of tax credits represented by tax credit
195 certificates that the [
196
197
198 (b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
199 Rulemaking Act, make rules to establish a process [
200 claimant, estate, or trust may reserve a potential tax credit under this section for a limited time
201 to allow the [
202 the assurance that the aggregate limit under Subsection (5)(a) will not be met before the
203 [
204 (6) (a) (i) A claimant, estate, or trust wishing to claim a tax credit under this section
205 shall, using forms the board requires by rule:
206 (A) submit to the [
207 (B) provide the [
208
209 (C) submit to the [
210 Subsection (2)(b).
211 (ii) Upon receiving the application, proof, and certification required under Subsection
212 (6)(a)(i), the [
213 from the [
214 (b) If the [
215 credit under this section, the [
216 (i) determine the amount of tax credit the claimant, estate, or trust is allowed under this
217 section; and
218 (ii) provide the [
219 certificate:
220 (A) stating that the claimant, estate, or trust has qualified for a tax credit; and
221 (B) showing the amount of tax credit for which the claimant, estate, or trust has
222 qualified under this section.
223 (c) A [
224 (d) The [
225 [
226 credit certificate and the amount of each tax credit represented by the tax credit certificates.
227 (7) The tax credit under this section is allowed only:
228 (a) against a tax owed under this chapter in the taxable year by the qualified taxpayer;
229 (b) for the taxable year in which the [
230 (c) once per vehicle.
231 (8) A [
232 certificate under this section to another person.
233 (9) If the [
234
235 [
236 taxpayer may carry forward the amount of the tax credit [
237 liability [
238 (10) (a) In accordance with any rules prescribed by the commission under Subsection
239 (10)(b), the Division of Finance shall transfer at least annually from the General Fund into the
240 Education Fund the aggregate amount of all tax credits claimed under this section.
241 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
242 commission may make rules for making a transfer from the General Fund into the Education
243 Fund as required by Subsection (10)(a).
244 Section 3. Retrospective operation.
245 This bill has retrospective operation for a taxable year beginning on or after January 1,
246 2017.