1     
TAX CREDIT FOR ENERGY EFFICIENT VEHICLES

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Raymond P. Ward

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill modifies the corporate and individual income tax credits related to energy
10     efficient vehicles.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms;
14          ▸     amends the Air Quality Board's rulemaking authority;
15          ▸     modifies and extends the corporate and individual income tax credits related to
16     energy efficient vehicles;
17          ▸     authorizes assignment of the corporate and individual income tax credits; and
18          ▸     makes technical changes.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     AMENDS:
25          19-2-104, as last amended by Laws of Utah 2015, Chapter 154
26          59-7-605, as last amended by Laws of Utah 2016, Chapters 369 and 375
27          59-10-1009, as last amended by Laws of Utah 2016, Chapters 369 and 375
28     

29     Be it enacted by the Legislature of the state of Utah:
30          Section 1. Section 19-2-104 is amended to read:
31          19-2-104. Powers of board.
32          (1) The board may make rules in accordance with Title 63G, Chapter 3, Utah
33     Administrative Rulemaking Act:
34          (a) regarding the control, abatement, and prevention of air pollution from all sources
35     and the establishment of the maximum quantity of air pollutants that may be emitted by an air
36     pollutant source;
37          (b) establishing air quality standards;
38          (c) requiring persons engaged in operations that result in air pollution to:
39          (i) install, maintain, and use emission monitoring devices, as the board finds necessary;
40          (ii) file periodic reports containing information relating to the rate, period of emission,
41     and composition of the air pollutant; and
42          (iii) provide access to records relating to emissions which cause or contribute to air
43     pollution;
44          (d) (i) implementing:
45          (A) Toxic Substances Control Act, Subchapter II, Asbestos Hazard Emergency
46     Response, 15 U.S.C. 2601 et seq.;
47          (B) 40 C.F.R. Part 763, Asbestos; and
48          (C) 40 C.F.R. Part 61, National Emission Standards for Hazardous Air Pollutants,
49     Subpart M, National Emission Standard for Asbestos; and
50          (ii) reviewing and approving asbestos management plans submitted by local education
51     agencies under the Toxic Substances Control Act, Subchapter II, Asbestos Hazard Emergency
52     Response, 15 U.S.C. 2601 et seq.;
53          (e) establishing a requirement for a diesel emission opacity inspection and maintenance
54     program for diesel-powered motor vehicles;
55          (f) implementing an operating permit program as required by and in conformity with
56     Titles IV and V of the federal Clean Air Act Amendments of 1990;
57          (g) establishing requirements for county emissions inspection and maintenance
58     programs after obtaining agreement from the counties that would be affected by the
59     requirements;
60          (h) with the approval of the governor, implementing in air quality nonattainment areas
61     employer-based trip reduction programs applicable to businesses having more than 100
62     employees at a single location and applicable to federal, state, and local governments to the
63     extent necessary to attain and maintain ambient air quality standards consistent with the state
64     implementation plan and federal requirements under the standards set forth in Subsection (2);
65          (i) implementing lead-based paint training, certification, and performance requirements
66     in accordance with 15 U.S.C. 2601 et seq., Toxic Substances Control Act, Subchapter IV --
67     Lead Exposure Reduction, Sections 402 and 406; and
68          (j) to implement the requirements of Section 19-2-107.5.
69          (2) When implementing Subsection (1)(h) the board shall take into consideration:
70          (a) the impact of the business on overall air quality; and
71          (b) the need of the business to use automobiles in order to carry out its business
72     purposes.
73          (3) (a) The board may:
74          (i) hold a hearing that is not an adjudicative proceeding relating to any aspect of, or
75     matter in, the administration of this chapter;
76          (ii) recommend that the director:
77          (A) issue orders necessary to enforce the provisions of this chapter;
78          (B) enforce the orders by appropriate administrative and judicial proceedings;
79          (C) institute judicial proceedings to secure compliance with this chapter; or
80          (D) advise, consult, contract, and cooperate with other agencies of the state, local
81     governments, industries, other states, interstate or interlocal agencies, the federal government,
82     or interested persons or groups; and
83          (iii) establish certification requirements for asbestos project monitors, which shall
84     provide for experience-based certification of a person who:
85          (A) receives relevant asbestos training, as defined by rule; and
86          (B) has acquired a minimum of 1,000 hours of asbestos project monitoring related
87     work experience.
88          (b) The board shall:
89          (i) to ensure compliance with applicable statutes and regulations:
90          (A) review a settlement negotiated by the director in accordance with Subsection
91     19-2-107(2)(b)(viii) that requires a civil penalty of $25,000 or more; and
92          (B) approve or disapprove the settlement;
93          (ii) encourage voluntary cooperation by persons and affected groups to achieve the
94     purposes of this chapter;
95          (iii) meet the requirements of federal air pollution laws;
96          (iv) by rule in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
97     Act, establish work practice and certification requirements for persons who:
98          (A) contract for hire to conduct demolition, renovation, salvage, encapsulation work
99     involving friable asbestos-containing materials, or asbestos inspections if:
100          (I) the contract work is done on a site other than a residential property with four or
101     fewer units; or
102          (II) the contract work is done on a residential property with four or fewer units where a
103     tested sample contained greater than 1% of asbestos;
104          (B) conduct work described in Subsection (3)(b)(iv)(A) in areas to which the general
105     public has unrestrained access or in school buildings that are subject to the federal Asbestos
106     Hazard Emergency Response Act of 1986;
107          (C) conduct asbestos inspections in facilities subject to 15 U.S.C. 2601 et seq., Toxic
108     Substances Control Act, Subchapter II - Asbestos Hazard Emergency Response; or
109          (D) conduct lead-based paint inspections in facilities subject to 15 U.S.C. 2601 et seq.,
110     Toxic Substances Control Act, Subchapter IV -- Lead Exposure Reduction;
111          (v) establish certification requirements for a person required under 15 U.S.C. 2601 et
112     seq., Toxic Substances Control Act, Subchapter II - Asbestos Hazard Emergency Response, to
113     be accredited as an inspector, management planner, abatement project designer, asbestos
114     abatement contractor and supervisor, or an asbestos abatement worker;
115          (vi) establish certification procedures and [requirements for certification of the
116     conversion of a motor vehicle to a clean-fuel vehicle, certifying the] the form for submitting
117     proof of purchase or lease of a vehicle that is eligible for the tax credit [granted] described in
118     Section 59-7-605 or 59-10-1009;
119          (vii) establish certification requirements for a person required under 15 U.S.C. 2601 et
120     seq., Toxic Control Act, Subchapter IV - Lead Exposure Reduction, to be accredited as an
121     inspector, risk assessor, supervisor, project designer, abatement worker, renovator, or dust
122     sampling technician; and
123          (viii) assist the State Board of Education in adopting school bus idling reduction
124     standards and implementing an idling reduction program in accordance with Section
125     41-6a-1308.
126          (4) A rule adopted under this chapter shall be consistent with provisions of federal
127     laws, if any, relating to control of motor vehicles or motor vehicle emissions.
128          (5) Nothing in this chapter authorizes the board to require installation of or payment for
129     any monitoring equipment by the owner or operator of a source if the owner or operator has
130     installed or is operating monitoring equipment that is equivalent to equipment which the board
131     would require under this section.
132          (6) (a) The board may not require testing for asbestos or related materials on a
133     residential property with four or fewer units, unless:
134          (i) the property's construction was completed before January 1, 1981; or
135          (ii) the testing is for:
136          (A) a sprayed-on or painted on ceiling treatment that contained or may contain asbestos
137     fiber;
138          (B) asbestos cement siding or roofing materials;
139          (C) resilient flooring products including vinyl asbestos tile, sheet vinyl products,
140     resilient flooring backing material, whether attached or unattached, and mastic;
141          (D) thermal-system insulation or tape on a duct or furnace; or
142          (E) vermiculite type insulation materials.
143          (b) A residential property with four or fewer units is subject to an abatement rule made
144     under Subsection (1) or (3)(b)(iv) if:
145          (i) a sample from the property is tested for asbestos; and
146          (ii) the sample contains asbestos measuring greater than 1%.
147          (7) The board may not issue, amend, renew, modify, revoke, or terminate any of the
148     following that are subject to the authority granted to the director under Section 19-2-107 or
149     19-2-108:
150          (a) a permit;
151          (b) a license;
152          (c) a registration;
153          (d) a certification; or
154          (e) another administrative authorization made by the director.
155          (8) A board member may not speak or act for the board unless the board member is
156     authorized by a majority of a quorum of the board in a vote taken at a meeting of the board.
157          (9) Notwithstanding Subsection (7), the board may exercise all authority granted to the
158     board by a federally enforceable state implementation plan.
159          Section 2. Section 59-7-605 is amended to read:
160          59-7-605. Definitions -- Tax credits related to energy efficient vehicles.
161          (1) As used in this section:
162          (a) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
163     the standards established in bin 4 in Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
164          (b) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
165     Conservation Act.
166          (c) "Director" means the director of the Division of Air Quality appointed under
167     Section 19-2-107.
168          (d) "Election statement" means a document that:
169          (i) is executed by:
170          (A) a taxpayer; and
171          (B) the financing entity, the financing entity's agent, or the financing entity's designee;
172          (ii) identifies the vehicle identification number of the vehicle that qualifies for a tax
173     credit under this section; and
174          (iii) affirms that the requirements described in Subsection (3) have been met.
175          (e) "Energy efficient vehicle market share threshold" means the point, calculated as of
176     July 1 of each year, when the combined number of qualifying electric vehicles and qualifying
177     plug-in hybrid vehicles that are registered in this state and have paid the registration fee
178     described in Subsection 41-1a-1206(1)(b) or 41-1a-1206(2)(a)(ii) has reached 4% of the total
179     vehicles that are registered in this state and have paid the registration fee described in
180     Subsection 41-1a-1206(1)(b) or 41-1a-1206(2)(a)(ii).
181          (f) "Financing entity" means the entity that finances the purchase or lease of a vehicle
182     that qualifies for a tax credit under this section.
183          [(c)] (g) "OEM vehicle" means the same as that term is defined in Section 19-1-402.
184          [(d)] (h) "Original purchase" means the purchase of a vehicle that has never been titled
185     or registered and has been driven less than 7,500 miles.
186          [(e) "Qualifying electric motorcycle" means a vehicle that:]
187          [(i) has a seat or saddle for the use of the rider;]
188          [(ii) is designed to travel with not more than three wheels in contact with the ground;]
189          [(iii) may lawfully be operated on a freeway, as defined in Section 41-6a-102;]
190          [(iv) is not fueled by natural gas;]
191          [(v) is fueled by electricity only; and]
192          [(vi) is an OEM vehicle except that the vehicle is fueled by a fuel described in
193     Subsection (1)(e)(v).]
194          [(f)] (i) "Qualifying electric vehicle" means [a] an electric motor vehicle, as defined in
195     Section 41-1a-102, that:
196          (i) meets air quality standards; and
197          [(ii) is not fueled by natural gas;]
198          [(iii) draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
199     and]
200          [(iv)] (ii) is an OEM vehicle [except that the vehicle is fueled by a fuel described in
201     Subsection (1)(f)(iii)].
202          [(g)] (j) "Qualifying plug-in hybrid vehicle" means a plug-in electric motor vehicle, as
203     defined in Section 41-1a-102, that:
204          (i) meets air quality standards;
205          (ii) is not fueled by natural gas or propane;
206          (iii) has a battery capacity that meets or exceeds the battery capacity described in
207     Section 30D(b)(3), Internal Revenue Code; and
208          (iv) is fueled by a combination of electricity and:
209          (A) diesel fuel;
210          (B) gasoline; or
211          (C) a mixture of gasoline and ethanol.
212          (2) For a taxable year beginning on or after January 1, [2015, but beginning on or
213     before December 31, 2016] 2020, a taxpayer may claim a tax credit against tax otherwise due
214     under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to
215     Pay Corporate Franchise or Income Tax Act, in an amount equal to:
216          (a) [(i)] for the original purchase of a new qualifying electric vehicle or new qualifying
217     plug-in hybrid vehicle that is registered in this state, [the lesser of:] $1,000; and
218          [(A) $1,500; or]
219          [(B) 35% of the purchase price of the vehicle; or]
220          [(ii) for the original purchase of a new qualifying plug-in hybrid vehicle that is
221     registered in this state, $1,000;]
222          [(b) for the original purchase of a new vehicle fueled by natural gas or propane that is
223     registered in this state, the lesser of:]
224          [(i) $1,500; or]
225          [(ii) 35% of the purchase price of the vehicle;]
226          [(c) for the original purchase of a new qualifying electric motorcycle that is registered
227     in this state, the lesser of:]
228          [(i) $750; or]
229          [(ii) 35% of the purchase price of the vehicle; and]
230          [(d)] (b) for a lease of a vehicle described in Subsection (2)(a), [(b), or (c),] an amount
231     equal to the product of:
232          (i) the amount of tax credit the taxpayer would otherwise qualify to claim under
233     Subsection (2)(a), [(b), or (c)] had the taxpayer purchased the vehicle[, except that the purchase
234     price described in Subsection (2)(a)(i)(B), (2)(b)(ii), or (2)(c)(ii) is considered to be the value
235     of the vehicle at the beginning of the lease]; and
236          (ii) a percentage calculated by:
237          (A) determining the difference between the value of the vehicle at the beginning of the
238     lease, as stated in the lease agreement, and the value of the vehicle at the end of the lease, as
239     stated in the lease agreement; and
240          (B) dividing the difference determined under Subsection [(2)(d)(ii)(A)] (2)(b)(ii)(A) by
241     the value of the vehicle at the beginning of the lease, as stated in the lease agreement.
242          [(3) (a) The board shall:]
243          [(i) determine the amount of tax credit a taxpayer is allowed under this section; and]
244          [(ii) provide the taxpayer with a written certification of the amount of tax credit the
245     taxpayer is allowed under this section.]
246          [(b) A taxpayer shall provide proof of the purchase or lease of an item for which a tax
247     credit is allowed under this section by:]
248          [(i) providing proof to the board in the form the board requires by rule;]
249          [(ii) receiving a written statement from the board acknowledging receipt of the proof;
250     and]
251          [(iii) retaining the written statement described in Subsection (3)(b)(ii).]
252          [(c) A taxpayer shall retain the written certification described in Subsection (3)(a)(ii).]
253          [(4) Except as provided by Subsection (5), the tax credit under this section is allowed
254     only:]
255          [(a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
256     Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year
257     by the taxpayer;]
258          [(b) for the taxable year in which a vehicle described in Subsection (2)(a), (b), or (c) is
259     purchased or a vehicle described in Subsection (2)(d) is leased; and]
260          [(c) once per vehicle.]
261          [(5)] (3) (a) [A] Except as provided in Subsection (3)(b), a taxpayer may not assign a
262     tax credit under this section to another person.
263          (b) A taxpayer may assign a tax credit under this section to a financing entity as
264     follows:
265          (i) in exchange for the consideration described in Subsection (3)(b)(iv), the taxpayer
266     shall assign the tax credit to the financing entity and forfeit the right to claim the tax credit on
267     the taxpayer's income tax return;
268          (ii) the taxpayer shall assign the tax credit to the financing entity by executing an
269     election statement described in Subsection (3)(c) at the time of the purchase or lease of a new
270     qualifying electric vehicle or qualifying plug-in hybrid vehicle;
271          (iii) the taxpayer shall title and register the vehicle in the state as required by Title 41,
272     Chapter 1a, Part 5, Titling Requirement, and Title 41, Chapter 1a, Part 2, Registration; and
273          (iv) the financing entity shall compensate the taxpayer the applicable amount of the tax
274     credit described in Subsection (2) for the qualifying electric vehicle or qualifying plug-in
275     hybrid vehicle purchased or leased.
276          (c) The board shall develop a model election statement on or before July 1, 2019.
277          (4) (a) A taxpayer may claim the tax credit under this section only:
278          (i) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
279     Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year;
280     and
281          (ii) for the taxable year in which a taxpayer purchases or leases a new qualifying
282     electric vehicle or qualifying plug-in hybrid vehicle.
283          (b) A financing entity may claim a tax credit assigned to the financing entity under
284     Subsection (3)(b):
285          (i) against a tax owed under this chapter, Chapter 8, Gross Receipts Tax on Certain
286     Corporations Not Required to Pay Corporate Franchise or Income Tax Act, or Chapter 10,
287     Individual Income Tax Act; and
288          (ii) for the taxable year in which the taxpayer purchases or leases a new qualifying
289     electric vehicle or qualifying plug-in hybrid vehicle.
290          (c) This section only allows one tax credit per vehicle.
291          (5) Before claiming a tax credit under this section, a taxpayer or a financing entity
292     described in Subsection (3)(b) shall obtain the written certification described in Subsection (6).
293          (6) (a) The director shall:
294          (i) verify that only one written certification is issued per vehicle;
295          (ii) determine the amount of tax credit a taxpayer or a financing entity described in
296     Subsection (3)(b) is allowed under this section; and
297          (iii) provide the taxpayer or the financing entity described in Subsection (3)(b) with a
298     written certification of the amount of tax credit allowed under this section.
299          (b) (i) A taxpayer shall provide proof of the purchase or lease of a vehicle that qualifies
300     for a tax credit under this section by:
301          (A) providing proof to the director in the form established by the board;
302          (B) obtaining a written statement from the director acknowledging receipt of the proof;
303     and
304          (C) retaining the written statement described in Subsection (6)(b)(i)(B) for the same
305     time period a person is required to keep books and records under Section 59-1-1406.
306          (ii) A financing entity shall provide proof of assignment of a tax credit for a vehicle
307     that qualifies for a tax credit under this section by:
308          (A) providing a copy of the election statement to the director;
309          (B) providing proof, in the form established by the board, of the taxpayer's purchase or
310     lease of a vehicle that qualifies for a tax credit under this section;
311          (C) obtaining a written statement from the director acknowledging receipt of the
312     election statement; and
313          (D) retaining the written statement described in Subsection (6)(b)(ii)(C) for the same
314     time period a person is required to keep books and records under Section 59-1-1406.
315          (c) A taxpayer or a financing entity described in Subsection (3)(b) shall retain the
316     written certification described in Subsection (6)(a)(iii).
317          (d) The aggregate annual total amount of tax credits represented by written certificates
318     issued by the director under this section and Section 59-10-1009 may not exceed $2,000,000.
319          (e) The director shall at least annually submit to the commission an electronic list that
320     includes:
321          (i) the name and identifying information of each taxpayer or financing entity to which
322     the director issues a certificate; and
323          (ii) for each taxpayer or financing entity, the amount of the tax credit listed on the
324     certificate.
325          [(6)] (7) (a) If the amount of a tax credit claimed by a taxpayer under this section
326     exceeds the taxpayer's tax liability under this chapter or Chapter 8, Gross Receipts Tax on
327     Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, for a
328     taxable year, a taxpayer may carry forward the amount of the tax credit exceeding the tax
329     liability [may be carried forward] for a period that does not exceed the next five taxable years.
330          (b) If the amount of a tax credit claimed by a financing entity under this section
331     exceeds the financing entity's tax liability under this chapter, Chapter 8, Gross Receipts Tax on
332     Certain Corporations Not Required to Pay Corporate Franchise or Income Tax Act, or Chapter
333     10, Individual Income Tax Act, for a taxable year, the financing entity may carry forward the
334     amount of the tax credit exceeding the liability for a period that does not exceed the next five
335     taxable years.
336          (8) (a) The director shall not issue a written certification described in Subsection (6) to
337     a taxpayer or a financing entity for a tax credit under this section for a taxable year beginning
338     on or after January 1 following notification made by the commission described in Subsection
339     (8)(b) that the energy efficient vehicle market share threshold has been reached.
340          (b) (i) On July 15 of each year, or the next business day if July 15 is a nonbusiness day,
341     the commission shall issue a notice stating whether the energy efficient vehicle market share
342     threshold has been reached.
343          (ii) The notice described in Subsection (8)(b)(i) shall:
344          (A) be displayed in a conspicuous place on the commission's website; and
345          (B) be provided to the director.
346          [(7)] (9) In accordance with any rules prescribed by the commission under Subsection
347     [(8)] (10), the Division of Finance shall transfer at least annually from the General Fund into
348     the Education Fund the amount [by which the amount] of tax credit claimed under this section
349     for a fiscal year [exceeds $500,000].
350          [(8)] (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
351     Act, the commission may make rules for making a transfer from the General Fund into the
352     Education Fund as required by Subsection [(7)] (9).
353          Section 3. Section 59-10-1009 is amended to read:
354          59-10-1009. Definitions -- Tax credits related to energy efficient vehicles.
355          (1) As used in this section:
356          (a) "Air quality standards" means that a vehicle's emissions are equal to or cleaner than
357     the standards established in bin 4 in Table S04-1, of 40 C.F.R. 86.1811-04(c)(6).
358          (b) "Board" means the Air Quality Board created in Title 19, Chapter 2, Air
359     Conservation Act.
360          (c) "Director" means the director of the Division of Air Quality appointed under
361     Section 19-2-107.
362          (d) "Election statement" means a document that:
363          (i) is executed by:
364          (A) a claimant, estate, or trust; and
365          (B) the financing entity, the financing entity's agent, or the financing entity's designee;
366          (ii) identifies the vehicle identification number of the vehicle that qualifies for a tax
367     credit under this section; and
368          (iii) affirms that the requirements described in Subsection (3) have been met.
369          (e) "Energy efficient vehicle market share threshold" means the point, calculated as of
370     July 1 of each year, when the combined number of qualifying electric vehicles and qualifying
371     plug-in hybrid vehicles that are registered in this state and have paid the registration fee
372     described in Subsection 41-1a-1206(1)(b) or 41-1a-1206(2)(a)(ii) has reached 4% of the total
373     vehicles that are registered in this state and have paid the registration fee described in
374     Subsection 41-1a-1206(1)(b) or 41-1a-1206(2)(a)(ii).
375          (f) "Financing entity" means the entity that finances the purchase or lease of a vehicle
376     that qualifies for a tax credit under this section.
377          [(c)] (g) "OEM vehicle" means the same as that term is defined in Section 19-1-402.
378          [(d)] (h) "Original purchase" means the purchase of a vehicle that has never been titled
379     or registered and has been driven less than 7,500 miles.
380          [(e) "Qualifying electric motorcycle" means a vehicle that:]
381          [(i) has a seat or saddle for the use of the rider;]
382          [(ii) is designed to travel with not more than three wheels in contact with the ground;]
383          [(iii) may lawfully be operated on a freeway, as defined in Section 41-6a-102;]
384          [(iv) is not fueled by natural gas;]
385          [(v) is fueled by electricity only; and]
386          [(vi) is an OEM vehicle except that the vehicle is fueled by a fuel described in
387     Subsection (1)(e)(v).]
388          [(f)] (i) "Qualifying electric vehicle" means [a] an electric motor vehicle, as defined in
389     Section 41-1a-102, that:
390          (i) meets air quality standards; and
391          [(ii) is not fueled by natural gas;]
392          [(iii) draws propulsion energy from a battery with at least 10 kilowatt hours of capacity;
393     and]
394          [(iv)] (ii) is an OEM vehicle [except that the vehicle is fueled by a fuel described in
395     Subsection (1)(f)(iii)].
396          [(g)] (j) "Qualifying plug-in hybrid vehicle" means a plug-in electric motor vehicle, as
397     defined in Section 41-1a-102, that:
398          (i) meets air quality standards;
399          (ii) is not fueled by natural gas or propane;
400          (iii) has a battery capacity that meets or exceeds the battery capacity described in
401     Section 30D(b)(3), Internal Revenue Code; and
402          (iv) is fueled by a combination of electricity and:
403          (A) diesel fuel;
404          (B) gasoline; or
405          (C) a mixture of gasoline and ethanol.
406          (2) For a taxable year beginning on or after January 1, [2015, but beginning on or
407     before December 31, 2016] 2020, a claimant, estate, or trust may claim a nonrefundable tax
408     credit against tax otherwise due under this chapter in an amount equal to:
409          (a) [(i)] for the original purchase of a new qualifying electric vehicle or new qualifying
410     plug-in hybrid vehicle that is registered in this state, [the lesser of:] $1,000; and
411          [(A) $1,500; or]
412          [(B) 35% of the purchase price of the vehicle; or]
413          [(ii) for the original purchase of a new qualifying plug-in hybrid vehicle that is
414     registered in this state, $1,000;]
415          [(b) for the original purchase of a new vehicle fueled by natural gas or propane that is
416     registered in this state, the lesser of:]
417          [(i) $1,500; or]
418          [(ii) 35% of the purchase price of the vehicle;]
419          [(c) for the original purchase of a new qualifying electric motorcycle that is registered
420     in this state, the lesser of:]
421          [(i) $750; or]
422          [(ii) 35% of the purchase price of the vehicle; and]
423          [(d)] (b) for a lease of a vehicle described in Subsection (2)(a), [(b), or (c),] an amount
424     equal to the product of:
425          (i) the amount of tax credit the claimant, estate, or trust would otherwise qualify to
426     claim under Subsection (2)(a), [(b), or (c)] had the claimant, estate, or trust purchased the
427     vehicle[, except that the purchase price described in Subsection (2)(a)(i)(B), (2)(b)(ii), or
428     (2)(c)(ii) is considered to be the value of the vehicle at the beginning of the lease]; and
429          (ii) a percentage calculated by:
430          (A) determining the difference between the value of the vehicle at the beginning of the
431     lease, as stated in the lease agreement, and the value of the vehicle at the end of the lease, as
432     stated in the lease agreement; and
433          (B) dividing the difference determined under Subsection [(2)(d)(ii)(A)] (2)(b)(ii)(A) by
434     the value of the vehicle at the beginning of the lease, as stated in the lease agreement.
435          [(3) (a) The board shall:]
436          [(i) determine the amount of tax credit a claimant, estate, or trust is allowed under this
437     section; and]
438          [(ii) provide the claimant, estate, or trust with a written certification of the amount of
439     tax credit the claimant, estate, or trust is allowed under this section.]
440          [(b) A claimant, estate, or trust shall provide proof of the purchase or lease of an item
441     for which a tax credit is allowed under this section by:]
442          [(i) providing proof to the board in the form the board requires by rule;]
443          [(ii) receiving a written statement from the board acknowledging receipt of the proof;
444     and]
445          [(iii) retaining the written statement described in Subsection (3)(b)(ii).]
446          [(c) A claimant, estate, or trust shall retain the written certification described in
447     Subsection (3)(a)(ii).]
448          [(4) Except as provided by Subsection (5), the tax credit under this section is allowed
449     only:]
450          [(a) against a tax owed under this chapter in the taxable year by the claimant, estate, or
451     trust;]
452          [(b) for the taxable year in which a vehicle described in Subsection (2)(a), (b), or (c) is
453     purchased or a vehicle described in Subsection (2)(d) is leased; and]
454          [(c) once per vehicle.]
455          [(5)] (3) (a) [A] Except as provided in Subsection (3)(b), a claimant, estate, or trust
456     may not assign a tax credit under this section to another person.
457          (b) A claimant, estate, or trust may assign a tax credit under this section to a financing
458     entity as follows:
459          (i) in exchange for the consideration described in Subsection (3)(b)(iv), the claimant,
460     estate, or trust shall assign the tax credit to the financing entity and forfeit the right to claim the
461     tax credit on the claimant, estate, or trust's income tax return;
462          (ii) the claimant, estate, or trust shall assign the tax credit to the financing entity by
463     executing an election statement described in Subsection (3)(c) at the time of the purchase or
464     lease of a new qualifying electric vehicle or qualifying plug-in hybrid vehicle;
465          (iii) the claimant, estate, or trust shall title and register the vehicle in the state as
466     required by Title 41, Chapter 1a, Part 5, Titling Requirement, and Title 41, Chapter 1a, Part 2,
467     Registration; and
468          (iv) the financing entity shall compensate the claimant, estate, or trust the applicable
469     amount of the tax credit described in Subsection (2) for the qualifying electric vehicle or
470     qualifying plug-in hybrid vehicle purchased or leased.
471          (c) The board shall develop a model election statement on or before July 1, 2019.
472          (4) (a) A claimant, estate, or trust may claim the tax credit under this section only:
473          (i) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
474     Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year;
475     and
476          (ii) for the taxable year in which a claimant, estate, or trust purchases or leases a new
477     qualifying electric vehicle or qualifying plug-in hybrid vehicle.
478          (b) A financing entity may claim a tax credit assigned to the financing entity under
479     Subsection (3)(b):
480          (i) against a tax owed under this chapter, Chapter 7, Corporate Franchise and Income
481     Taxes, or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
482     Corporate Franchise or Income Tax Act; and
483          (ii) for the taxable year in which the claimant, estate, or trust purchases or leases a new
484     qualifying electric vehicle or qualifying plug-in hybrid vehicle.
485          (c) This section only allows one tax credit per vehicle.
486          (5) Before claiming a tax credit under this section, a claimant, estate, or trust, or a
487     financing entity described in Subsection (3)(b), shall obtain the written certification described
488     in Subsection (6).
489          (6) (a) The director shall:
490          (i) verify that only one written certification is issued per vehicle;
491          (ii) determine the amount of tax credit a claimant, estate, or trust, or a financing entity
492     described in Subsection (3)(b), is allowed under this section; and
493          (iii) provide the claimant, estate, or trust, or the financing entity described in
494     Subsection (3)(b), with a written certification of the amount of tax credit allowed under this
495     section.
496          (b) (i) A claimant, estate, or trust shall provide proof of the purchase or lease of a
497     vehicle that qualifies for a tax credit under this section by:
498          (A) providing proof to the director in the form established by the board;
499          (B) obtaining a written statement from the director acknowledging receipt of the proof;
500     and
501          (C) retaining the written statement described in Subsection (6)(b)(i)(B) for the same
502     time period a person is required to keep books and records under Section 59-1-1406.
503          (ii) A financing entity shall provide proof of assignment of a tax credit for a vehicle
504     that qualifies for a tax credit under this section by:
505          (A) providing a copy of the election statement to the director;
506          (B) providing proof, in the form established by the board, of the claimant, estate, or
507     trust's purchase or lease of a vehicle that qualifies for a tax credit under this section;
508          (C) obtaining a written statement from the director acknowledging receipt of the
509     election statement; and
510          (D) retaining the written statement described in Subsection (6)(b)(ii)(C) for the same
511     time period a person is required to keep books and records under Section 59-1-1406.
512          (c) A claimant, estate, or trust, or a financing entity described in Subsection (3)(b),
513     shall retain the written certification described in Subsection (6)(a)(iii).
514          (d) The aggregate annual total amount of tax credits represented by written certificates
515     issued by the director under this section and Section 59-7-605 may not exceed $2,000,000.
516          (e) The director shall at least annually submit to the commission an electronic list that
517     includes:
518          (i) the name and identifying information of each claimant, estate, or trust, or financing
519     entity, to which the director issues a certificate; and
520          (ii) for each claimant, estate, or trust, or financing entity, the amount of the tax credit
521     listed on the certificate.
522          [(6)] (7) (a) If the amount of a tax credit claimed by a claimant, estate, or trust under
523     this section exceeds the claimant's, estate's, or trust's tax liability under this chapter for a
524     taxable year, a claimant, estate, or trust may carry forward the amount of the tax credit
525     exceeding the tax liability [may be carried forward] for a period that does not exceed the next
526     five taxable years.
527          (b) If the amount of a tax credit claimed by a financing entity under this section
528     exceeds the financing entity's tax liability under this chapter, Chapter 7, Corporate Franchise
529     and Income Taxes, or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to
530     Pay Corporate Franchise or Income Tax Act, for a taxable year, the financing entity may carry
531     forward the amount of the tax credit exceeding the liability for a period that does not exceed
532     the next five taxable years.
533          (8) (a) The director shall not issue a written certification described in Subsection (6) to
534     a claimant, estate, or trust, or a financing entity, for a tax credit under this section for a taxable
535     year beginning on or after January 1 following notification made by the commission described
536     in Subsection (8)(b) that the energy efficient vehicle market share threshold has been reached.
537          (b) (i) On July 15 of each year, or the next business day if July 15 is a nonbusiness day,
538     the commission shall issue a notice stating whether the energy efficient vehicle market share
539     threshold has been reached.
540          (ii) The notice described in Subsection (8)(b)(i) shall:
541          (A) be displayed in a conspicuous place on the commission's website; and
542          (B) be provided to the director.
543          [(7)] (9) In accordance with any rules prescribed by the commission under Subsection
544     [(8)] (10), the Division of Finance shall transfer at least annually from the General Fund into
545     the Education Fund the amount [by which the amount] of tax credit claimed under this section
546     for a fiscal year [exceeds $500,000].
547          [(8)] (10) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
548     Act, the commission may make rules for making a transfer from the General Fund into the
549     Education Fund as required by Subsection [(7)] (9).