This document includes House Committee Amendments incorporated into the bill on Tue, Feb 16, 2021 at 8:29 AM by pflowers.
This document includes Senate 3rd Reading Floor Amendments incorporated into the bill on Wed, Mar 3, 2021 at 10:37 AM by lpoole.
1     
TAX CREDIT FOR ALTERNATIVE FUEL HEAVY DUTY

2     
VEHICLES

3     
2021 GENERAL SESSION

4     
STATE OF UTAH

5     
Chief Sponsor: Andrew Stoddard

6     
Senate Sponsor: Lincoln Fillmore

7     

8     LONG TITLE
9     General Description:
10          This bill reenacts a tax credit related to certain alternative fuel heavy duty vehicles.
11     Highlighted Provisions:
12          This bill:
13          ▸     reenacts and extends the availability of an income tax credit related to certain
14     alternative fuel heavy duty vehicles; and
15          ▸     makes technical and conforming changes.
16     Money Appropriated in this Bill:
17          None
18     Other Special Clauses:
19          Ĥ→ [
None] This bill provides retrospective operation. ←Ĥ
20     Utah Code Sections Affected:
21     AMENDS:
22          63I-1-259, as last amended by Laws of Utah 2020, Chapter 332
23     ENACTS:
24          59-7-618.1, Utah Code Annotated 1953
25          59-10-1033.1, Utah Code Annotated 1953
26     

27     Be it enacted by the Legislature of the state of Utah:

28          Section 1. Section 59-7-618.1 is enacted to read:
29          59-7-618.1. Tax credit related to alternative fuel heavy duty vehicles.
30          (1) As used in this section:
31          (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
32     Conservation Act.
33          (b) "Director" means the director of the Division of Air Quality appointed under
34     Section 19-2-107.
35          (c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
36     vehicle classifications established by the Federal Highway Administration.
37          (d) "Natural gas" includes compressed natural gas and liquified natural gas.
38          (e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
39          (i) has never been titled or registered and has been driven less than 7,500 miles; and
40          (ii) is fueled by natural gas, has a 100% electric drivetrain, or has a hydrogen-electric
41     drivetrain.
42          (f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
43          (g) "Qualified taxpayer" means a taxpayer that:
44          (i) purchases a qualified heavy duty vehicle; and
45          (ii) receives a tax credit certificate from the director.
46          (h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
47     owned by a single taxpayer.
48          (i) "Tax credit certificate" means a certificate issued by the director certifying that a
49     taxpayer is entitled to a tax credit as provided in this section and stating the amount of the tax
50     credit.
51          (2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise
52     due under this chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required
53     to Pay Corporate Franchise or Income Tax Act:
54          (a) in an amount equal to:
55          (i) $15,000, if the qualified purchase Ĥ→ [
of a natural gas heavy duty vehicle] ←Ĥ occurs
55a     during
56     calendar year Ĥ→ [
2020] 2021 ←Ĥ ;
57          (ii) $13,500, if the qualified purchase occurs during calendar year Ĥ→ [
2021] 2022 ←Ĥ ;
58          (iii) $12,000, if the qualified purchase occurs during calendar year Ĥ→ [
2022] 2023 ←Ĥ ;

59          (iv) $10,500, if the qualified purchase occurs during calendar year Ĥ→ [
2023] 2024 ←Ĥ ;
60          (v) $9,000, if the qualified purchase occurs during calendar year Ĥ→ [
2024] 2025 ←Ĥ ;
61          (vi) $7,500, if the qualified purchase occurs during calendar year Ĥ→ [
2025] 2026 ←Ĥ ;
62          (vii) $6,000, if the qualified purchase occurs during calendar year Ĥ→ [
2026] 2027 ←Ĥ ;
63          (viii) $4,500, if the qualified purchase occurs during calendar year Ĥ→ [
2027] 2028 ←Ĥ ;
64          (ix) $3,000, if the qualified purchase occurs during calendar year Ĥ→ [
2028] 2029 ←Ĥ ;
64a     and
65          (x) $1,500, if the qualified purchase occurs during calendar year Ĥ→ [
2029] 2030 ←Ĥ ; and
66          (b) if the qualified taxpayer certifies under oath that over 50% of the miles that the
67     heavy duty vehicle that is the subject of the qualified purchase will travel annually will be
68     within the state.
69          (3) (a) Except as provided in Subsection (3)(b), a taxpayer may not submit an
70     application for, and the director may not issue to the taxpayer, a tax credit certificate under this
71     section in any taxable year for a qualified purchase if the director has already issued tax credit
72     certificates to the taxpayer for 10 qualified 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 director may issue to the taxpayer, one or more tax credit certificates for up to eight
76     additional qualified purchases, even if the director has already issued to that taxpayer tax credit
77     certificates for the maximum number of qualified purchases allowed under Subsection (3)(a).
78          (4) (a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits
79     available under this section for qualified taxpayers with a small fleet.
80          (b) Subsection (4)(a) does not prevent a taxpayer from submitting an application for, or
81     the director from issuing, a tax credit certificate if, before October 1, qualified taxpayers with a
82     small fleet have not reserved under Subsection (5)(b) tax credits for the full amount reserved
83     under Subsection (4)(a).
84          (5) (a) The aggregate annual total amount of tax credits represented by tax credit
85     certificates that the director issues under this section and Section Ĥ→ [
59-10-1033] 59-10-1033.1 ←Ĥ 85a     may not exceed
86     $500,000.
87          (b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
88     Rulemaking Act, make rules to establish a process under which a taxpayer may reserve a
89     potential tax credit under this section for a limited time to allow the taxpayer to make a

90     qualified purchase with the assurance that the aggregate limit under Subsection (5)(a) will not
91     be met before the taxpayer is able to submit an application for a tax credit certificate.
92          (6) (a) (i) A taxpayer wishing to claim a tax credit under this section shall, using forms
93     the board requires by rule:
94          (A) submit to the director an application for a tax credit;
95          (B) provide the director proof of a qualified purchase; and
96          (C) submit to the director the certification under oath required under Subsection (2)(b).
97          (ii) Upon receiving the application, proof, and certification required under Subsection
98     (6)(a)(i), the director shall provide the taxpayer a written statement from the director
99     acknowledging receipt of the proof.
100          (b) If the director determines that a taxpayer qualifies for a tax credit under this section,
101     the director shall:
102          (i) determine the amount of tax credit the taxpayer is allowed under this section; and
103          (ii) provide the taxpayer with a written tax credit certificate:
104          (A) stating that the taxpayer has qualified for a tax credit; and
105          (B) showing the amount of tax credit for which the taxpayer has qualified under this
106     section.
107          (c) A qualified taxpayer shall retain the tax credit certificate.
108          (d) The director shall at least annually submit to the commission a list of all qualified
109     taxpayers to which the director has issued a tax credit certificate and the amount of each tax
110     credit represented by the tax credit certificates.
111          (7) The tax credit under this section is allowed only:
112          (a) against a tax owed under this chapter or Chapter 8, Gross Receipts Tax on Certain
113     Corporations Not Required to Pay Corporate Franchise or Income Tax Act, in the taxable year
114     by the qualified taxpayer;
115          (b) for the taxable year in which the qualified purchase occurs; and
116          (c) once per vehicle.
117          (8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this
118     section to another person.
119          (9) If the qualified taxpayer receives a tax credit certificate under this section that
120     allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this

121     chapter or Chapter 8, Gross Receipts Tax on Certain Corporations Not Required to Pay
122     Corporate Franchise or Income Tax Act, for a taxable year, the qualified taxpayer may carry
123     forward the amount of the tax credit that exceeds the tax liability for a period that does not
124     exceed the next five taxable years.
125          Section 2. Section 59-10-1033.1 is enacted to read:
126          59-10-1033.1. Tax credit related to alternative fuel heavy duty vehicles.
127          (1) As used in this section:
128          (a) "Board" means the Air Quality Board created under Title 19, Chapter 2, Air
129     Conservation Act.
130          (b) "Director" means the director of the Division of Air Quality appointed under
131     Section 19-2-107.
132          (c) "Heavy duty vehicle" means a commercial category 7 or 8 vehicle, according to
133     vehicle classifications established by the Federal Highway Administration.
134          (d) "Natural gas" includes compressed natural gas and liquified natural gas.
135          (e) "Qualified heavy duty vehicle" means a heavy duty vehicle that:
136          (i) has never been titled or registered and has been driven less than 7,500 miles; and
137          (ii) is fueled by natural gas, has a 100% electric drivetrain, or has a hydrogen-electric
138     drivetrain.
139          (f) "Qualified purchase" means the purchase of a qualified heavy duty vehicle.
140          (g) "Qualified taxpayer" means a claimant, estate, or trust that:
141          (i) purchases a qualified heavy duty vehicle; and
142          (ii) receives a tax credit certificate from the director.
143          (h) "Small fleet" means 40 or fewer heavy duty vehicles registered in the state and
144     owned by a single claimant, estate, or trust.
145          (i) "Tax credit certificate" means a certificate issued by the director certifying that a
146     claimant, estate, or trust is entitled to a tax credit as provided in this section and stating the
147     amount of the tax credit.
148          (2) A qualified taxpayer may claim a nonrefundable tax credit against tax otherwise
149     due under this chapter:
150          (a) in an amount equal to:
151          (i) $15,000, if the qualified purchase Ĥ→ [
of a natural gas heavy duty vehicle] ←Ĥ occurs
151a     during

152     calendar year Ĥ→ [
2020] 2021 ←Ĥ ;
153          (ii) $13,500, if the qualified purchase occurs during calendar year Ĥ→ [
2021] 2022 ←Ĥ ;
154          (iii) $12,000, if the qualified purchase occurs during calendar year Ĥ→ [
2022] 2023 ←Ĥ ;
155          (iv) $10,500, if the qualified purchase occurs during calendar year Ĥ→ [
2023] 2024 ←Ĥ ;
156          (v) $9,000, if the qualified purchase occurs during calendar year Ĥ→ [
2024] 2025 ←Ĥ ;
157          (vi) $7,500, if the qualified purchase occurs during calendar year Ĥ→ [
2025] 2026 ←Ĥ ;
158          (vii) $6,000, if the qualified purchase occurs during calendar year Ĥ→ [
2026] 2027 ←Ĥ ;
159          (viii) $4,500, if the qualified purchase occurs during calendar year Ĥ→ [
2027] 2028 ←Ĥ ;
160          (ix) $3,000, if the qualified purchase occurs during calendar year Ĥ→ [
2028] 2029 ←Ĥ ;
160a     and
161          (x) $1,500, if the qualified purchase occurs during calendar year Ĥ→ [
2029] 2030 ←Ĥ ; and
162          (b) if the qualified taxpayer certifies under oath that over 50% of the miles that the
163     heavy duty vehicle that is the subject of the qualified purchase will travel annually will be
164     within the state.
165          (3) (a) Except as provided in Subsection (3)(b), a claimant, estate, or trust may not
166     submit an application for, and the director may not issue to the claimant, estate, or trust, a tax
167     credit certificate under this section in any taxable year for a qualified purchase if the director
168     has already issued tax credit certificates to the claimant, estate, or trust for 10 qualified
169     purchases in the same taxable year.
170          (b) If, by May 1 of any year, more than 30% of the aggregate annual total amount of
171     tax credits under Subsection (5) has not been claimed, a claimant, estate, or trust may submit
172     an application for, and the director may issue to the claimant, estate, or trust, one or more tax
173     credit certificates for up to eight additional qualified purchases, even if the director has already
174     issued to that claimant, estate, or trust tax credit certificates for the maximum number of
175     qualified purchases allowed under Subsection (3)(a).
176          (4) (a) Subject to Subsection (4)(b), the director shall reserve 25% of all tax credits
177     available under this section for qualified taxpayers with a small fleet.
178          (b) Subsection (4)(a) does not prevent a claimant, estate, or trust from submitting an
179     application for, or the director from issuing, a tax credit certificate if, before October 1,
180     qualified taxpayers with a small fleet have not reserved under Subsection (5)(b) tax credits for
181     the full amount reserved under Subsection (4)(a).
182          (5) (a) The aggregate annual total amount of tax credits represented by tax credit

183     certificates that the director issues under this section and Section Ĥ→ [
59-7-618] 59-7-618.1 ←Ĥ
183a     may not exceed
184     $500,000.
185          (b) The board shall, in accordance with Title 63G, Chapter 3, Utah Administrative
186     Rulemaking Act, make rules to establish a process under which a claimant, estate, or trust may
187     reserve a potential tax credit under this section for a limited time to allow the claimant, estate,
188     or trust to make a qualified purchase with the assurance that the aggregate limit under
189     Subsection (5)(a) will not be met before the claimant, estate, or trust is able to submit an
190     application for a tax credit certificate.
191          (6) (a) (i) A claimant, estate, or trust wishing to claim a tax credit under this section
192     shall, using forms the board requires by rule:
193          (A) submit to the director an application for a tax credit;
194          (B) provide the director proof of a qualified purchase; and
195          (C) submit to the director the certification under oath required under Subsection (2)(b).
196          (ii) Upon receiving the application, proof, and certification required under Subsection
197     (6)(a)(i), the director shall provide the claimant, estate, or trust a written statement from the
198     director acknowledging receipt of the proof.
199          (b) If the director determines that a claimant, estate, or trust qualifies for a tax credit
200     under this section, the director shall:
201          (i) determine the amount of tax credit the claimant, estate, or trust is allowed under this
202     section; and
203          (ii) provide the claimant, estate, or trust with a written tax credit certificate:
204          (A) stating that the claimant, estate, or trust has qualified for a tax credit; and
205          (B) showing the amount of tax credit for which the claimant, estate, or trust has
206     qualified under this section.
207          (c) A qualified taxpayer shall retain the tax credit certificate.
208          (d) The director shall at least annually submit to the commission a list of all qualified
209     taxpayers to which the director has issued a tax credit certificate and the amount of each tax
210     credit represented by the tax credit certificates.
211          (7) The tax credit under this section is allowed only:
212          (a) against a tax owed under this chapter in the taxable year by the qualified taxpayer;
213          (b) for the taxable year in which the qualified purchase occurs; and

214          (c) once per vehicle.
215          (8) A qualified taxpayer may not assign a tax credit or a tax credit certificate under this
216     section to another person.
217          (9) If the qualified taxpayer receives a tax credit certificate under this section that
218     allows a tax credit in an amount that exceeds the qualified taxpayer's tax liability under this
219     chapter for a taxable year, the qualified taxpayer may carry forward the amount of the tax credit
220     that exceeds the tax liability for a period that does not exceed the next five taxable years.
221          Section 3. Section 63I-1-259 is amended to read:
222          63I-1-259. Repeal dates, Title 59.
223          (1) Section 59-1-213.1 is repealed on May 9, 2024.
224          (2) Section 59-1-213.2 is repealed on May 9, 2024.
225          (3) Subsection 59-1-405(1)(g) is repealed on May 9, 2024.
226          (4) Subsection 59-1-405(2)(b) is repealed on May 9, 2024.
227          [(5) Section 59-7-618 is repealed July 1, 2020.]
228          (5) Section Ŝ→ [
59-7-618] 59-7-618.1 ←Ŝ is repealed July 1, 2029.
229          (6) Section 59-9-102.5 is repealed December 31, 2030.
230          [(7) Section 59-10-1033 is repealed July 1, 2020.]
231          (7) Section 59-10-1033.1 is repealed July 1, 2029.
232          (8) Subsection 59-12-2219(13), which addresses new revenue supplanting existing
233     allocations, is repealed on June 30, 2020.
234          (9) Title 59, Chapter 28, State Transient Room Tax Act, is repealed on January 1,
235     2023.
235a          Ĥ→ Section 4. Retrospective operation.
235b          This bill has retrospective operation for a taxable year beginning on or after January 1,
235c     2021. ←Ĥ