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7 LONG TITLE
8 General Description:
9 This bill modifies provisions relating to energy efficient vehicle tax credits.
10 Highlighted Provisions:
11 This bill:
12 ▸ defines terms;
13 ▸ establishes a nonrefundable tax credit for the purchase of a new qualifying hydrogen
14 vehicle that is registered in the state; and
15 ▸ makes technical changes.
16 Money Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 59-7-605, as last amended by Laws of Utah 2016, Chapters 369 and 375
23 59-10-1009, as last amended by Laws of Utah 2016, Chapters 369 and 375
24
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 59-7-605 is amended to read:
27 59-7-605. Definitions -- Tax credits related to energy efficient vehicles.
28 (1) As used in this section:
29 (a) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
30 the standards established in bin 4 in Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
31 (b) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
32 Conservation Act.
33 (c) "OEM vehicle" means the same as that term is defined in Section 19-1-402.
34 (d) "Original purchase" means the purchase of a vehicle that has never been titled or
35 registered and has been driven less than 7,500 miles.
36 (e) "Qualifying electric motorcycle" means a vehicle that:
37 (i) has a seat or saddle for the use of the rider;
38 (ii) is designed to travel with not more than three wheels in contact with the ground;
39 (iii) may lawfully be operated on a freeway, as defined in Section 41-6a-102;
40 (iv) is not fueled by natural gas;
41 (v) is fueled by electricity only; and
42 (vi) is an OEM vehicle except that the vehicle is fueled by a fuel described in
43 Subsection (1)(e)(v).
44 (f) "Qualifying electric vehicle" means a vehicle that:
45 (i) meets air quality standards;
46 (ii) is not fueled by natural gas;
47 (iii) draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
48 and
49 (iv) is an OEM vehicle except that the vehicle is fueled by a fuel described in
50 Subsection (1)(f)(iii).
51 (g) "Qualifying hydrogen vehicle" means a vehicle that:
52 (i) meets air quality standards;
53 (ii) uses pure hydrogen to supply energy to an electrochemical cell that produces
54 electricity through a noncombustion reaction and then uses the electricity to power an electric
55 motor; and
56 (iii) is an OEM vehicle except that the vehicle is fueled as described in Subsection
57 (1)(g)(ii).
58 [
59 (i) meets air quality standards;
60 (ii) is not fueled by natural gas or propane;
61 (iii) has a battery capacity that meets or exceeds the battery capacity described in
62 Section 30D(b)(3), Internal Revenue Code; and
63 (iv) is fueled by a combination of electricity and:
64 (A) diesel fuel;
65 (B) gasoline; or
66 (C) a mixture of gasoline and ethanol.
67 (2) For a taxable year beginning on or after January 1, 2015, but beginning on or before
68 December 31, 2016, a taxpayer may claim a tax credit against tax otherwise due under this
69 chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
70 Corporate Franchise or Income Tax Act, in an amount equal to:
71 (a) (i) for the original purchase of a new qualifying electric vehicle that is registered in
72 this state, the lesser of:
73 (A) $1,500; or
74 (B) 35% of the purchase price of the vehicle; or
75 (ii) for the original purchase of a new qualifying plug-in hybrid vehicle that is
76 registered in this state, $1,000;
77 (b) for the original purchase of a new vehicle fueled by natural gas or propane that is
78 registered in this state, the lesser of:
79 (i) $1,500; or
80 (ii) 35% of the purchase price of the vehicle;
81 (c) for the original purchase of a new qualifying electric motorcycle that is registered in
82 this state, the lesser of:
83 (i) $750; or
84 (ii) 35% of the purchase price of the vehicle; and
85 (d) for a lease of a vehicle described in Subsection (2)(a), (b), or (c), an amount equal
86 to the product of:
87 (i) the amount of tax credit the taxpayer would otherwise qualify to claim under
88 Subsection (2)(a), (b), or (c) had the taxpayer purchased the vehicle, except that the purchase
89 price described in Subsection (2)(a)(i)(B), (2)(b)(ii), or (2)(c)(ii) is considered to be the value
90 of the vehicle at the beginning of the lease; and
91 (ii) a percentage calculated by:
92 (A) determining the difference between the value of the vehicle at the beginning of the
93 lease, as stated in the lease agreement, and the value of the vehicle at the end of the lease, as
94 stated in the lease agreement; and
95 (B) dividing the difference determined under Subsection (2)(d)(ii)(A) by the value of
96 the vehicle at the beginning of the lease, as stated in the lease agreement.
97 (3) For a taxable year beginning on or after January 1, 2019, but beginning on or before
98 December 31, 2022, a taxpayer may claim a nonrefundable tax credit against tax otherwise due
99 under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to
100 Pay Corporate Franchise or Income Tax Act, in an amount equal to $3,000 for the original
101 purchase of a new qualifying hydrogen vehicle that is registered in this state.
102 [
103 (i) determine the amount of tax credit a taxpayer is allowed under this section; and
104 (ii) provide the taxpayer with a written certification of the amount of tax credit the
105 taxpayer is allowed under this section.
106 (b) A taxpayer shall provide proof of the purchase or lease of an item for which a tax
107 credit is allowed under this section by:
108 (i) providing proof to the board in the form the board requires by rule;
109 (ii) receiving a written statement from the board acknowledging receipt of the proof;
110 and
111 (iii) retaining the written statement described in Subsection [
112 (c) A taxpayer shall retain the written certification described in Subsection [
113 (4)(a)(ii).
114 [
115 allowed only:
116 (a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
117 Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year
118 by the taxpayer;
119 (b) for the taxable year in which a vehicle described in Subsection (2)(a), (2)(b), [
120 (2)(c), or (3) is purchased or a vehicle described in Subsection (2)(d) is leased; and
121 (c) once per vehicle.
122 [
123 [
124 Subsection (2)(a), (b), (c), or (d) exceeds the taxpayer's tax liability under this chapter or
125 Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay Corporate
126 Franchise or Income Tax Act, for a taxable year, the amount of the tax credit exceeding the tax
127 liability may be carried forward for a period that does not exceed the next five taxable years.
128 [
129 [
130 Education Fund the amount by which the amount of tax credit claimed under this section for a
131 fiscal year exceeds $500,000.
132 [
133 Act, the commission may make rules for making a transfer from the General Fund into the
134 Education Fund as required by Subsection [
135 Section 2. Section 59-10-1009 is amended to read:
136 59-10-1009. Definitions -- Tax credits related to energy efficient vehicles.
137 (1) As used in this section:
138 (a) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
139 the standards established in bin 4 in Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
140 (b) "Board" means the Air Quality Board created in Title 19, Chapter 2, Air
141 Conservation Act.
142 (c) "OEM vehicle" means the same as that term is defined in Section 19-1-402.
143 (d) "Original purchase" means the purchase of a vehicle that has never been titled or
144 registered and has been driven less than 7,500 miles.
145 (e) "Qualifying electric motorcycle" means a vehicle that:
146 (i) has a seat or saddle for the use of the rider;
147 (ii) is designed to travel with not more than three wheels in contact with the ground;
148 (iii) may lawfully be operated on a freeway, as defined in Section 41-6a-102;
149 (iv) is not fueled by natural gas;
150 (v) is fueled by electricity only; and
151 (vi) is an OEM vehicle except that the vehicle is fueled by a fuel described in
152 Subsection (1)(e)(v).
153 (f) "Qualifying electric vehicle" means a vehicle that:
154 (i) meets air quality standards;
155 (ii) is not fueled by natural gas;
156 (iii) draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
157 and
158 (iv) is an OEM vehicle except that the vehicle is fueled by a fuel described in
159 Subsection (1)(f)(iii).
160 (g) "Qualifying hydrogen vehicle" means a vehicle that:
161 (i) meets air quality standards;
162 (ii) uses pure hydrogen to supply energy to an electrochemical cell that produces
163 electricity through a noncombustion reaction and then uses the electricity to power an electric
164 motor; and
165 (iii) is an OEM vehicle except that the vehicle is fueled as described in Subsection
166 (1)(g)(ii).
167 [
168 (i) meets air quality standards;
169 (ii) is not fueled by natural gas or propane;
170 (iii) has a battery capacity that meets or exceeds the battery capacity described in
171 Section 30D(b)(3), Internal Revenue Code; and
172 (iv) is fueled by a combination of electricity and:
173 (A) diesel fuel;
174 (B) gasoline; or
175 (C) a mixture of gasoline and ethanol.
176 (2) For a taxable year beginning on or after January 1, 2015, but beginning on or before
177 December 31, 2016, a claimant, estate, or trust may claim a nonrefundable tax credit against
178 tax otherwise due under this chapter in an amount equal to:
179 (a) (i) for the original purchase of a new qualifying electric vehicle that is registered in
180 this state, the lesser of:
181 (A) $1,500; or
182 (B) 35% of the purchase price of the vehicle; or
183 (ii) for the original purchase of a new qualifying plug-in hybrid vehicle that is
184 registered in this state, $1,000;
185 (b) for the original purchase of a new vehicle fueled by natural gas or propane that is
186 registered in this state, the lesser of:
187 (i) $1,500; or
188 (ii) 35% of the purchase price of the vehicle;
189 (c) for the original purchase of a new qualifying electric motorcycle that is registered in
190 this state, the lesser of:
191 (i) $750; or
192 (ii) 35% of the purchase price of the vehicle; and
193 (d) for a lease of a vehicle described in Subsection (2)(a), (b), or (c), an amount equal
194 to the product of:
195 (i) the amount of tax credit the claimant, estate, or trust would otherwise qualify to
196 claim under Subsection (2)(a), (b), or (c) had the claimant, estate, or trust purchased the
197 vehicle, except that the purchase price described in Subsection (2)(a)(i)(B), (2)(b)(ii), or
198 (2)(c)(ii) is considered to be the value of the vehicle at the beginning of the lease; and
199 (ii) a percentage calculated by:
200 (A) determining the difference between the value of the vehicle at the beginning of the
201 lease, as stated in the lease agreement, and the value of the vehicle at the end of the lease, as
202 stated in the lease agreement; and
203 (B) dividing the difference determined under Subsection (2)(d)(ii)(A) by the value of
204 the vehicle at the beginning of the lease, as stated in the lease agreement.
205 (3) For a taxable year beginning on or after January 1, 2019, but beginning on or before
206 December 31, 2022, a claimant, estate, or trust may claim a nonrefundable tax credit against
207 tax otherwise due under this chapter in an amount equal to $3,000 for the original purchase of a
208 new qualifying hydrogen vehicle that is registered in this state.
209 [
210 (i) determine the amount of tax credit a claimant, estate, or trust is allowed under this
211 section; and
212 (ii) provide the claimant, estate, or trust with a written certification of the amount of
213 tax credit the claimant, estate, or trust is allowed under this section.
214 (b) A claimant, estate, or trust shall provide proof of the purchase or lease of an item
215 for which a tax credit is allowed under this section by:
216 (i) providing proof to the board in the form the board requires by rule;
217 (ii) receiving a written statement from the board acknowledging receipt of the proof;
218 and
219 (iii) retaining the written statement described in Subsection [
220 (c) A claimant, estate, or trust shall retain the written certification described in
221 Subsection [
222 [
223 allowed only:
224 (a) against a tax owed under this chapter in the taxable year by the claimant, estate, or
225 trust;
226 (b) for the taxable year in which a vehicle described in Subsection (2)(a), (2)(b), [
227 (2)(c), or (3) is purchased or a vehicle described in Subsection (2)(d) is leased; and
228 (c) once per vehicle.
229 [
230 another person.
231 [
232
233 under this chapter for a taxable year, the amount of the tax credit exceeding the tax liability
234 may be carried forward for a period that does not exceed the next five taxable years.
235 [
236 [
237 Education Fund the amount by which the amount of tax credit claimed under this section for a
238 fiscal year exceeds $500,000.
239 [
240 Act, the commission may make rules for making a transfer from the General Fund into the
241 Education Fund as required by Subsection [
Legislative Review Note
Office of Legislative Research and General Counsel