Want to park, no change? Go to Salt Lake City

I live just north of Salt Lake in Ogden and this is the first I ever heard bout a $3000 Utah tax credit.......as far as I know there is only the federal one available here for 2005.

 

I did a little more research........

The state provides an income tax credit for 50% of the incremental cost ($3,000 maximum) of a clean-fuel vehicle built by an OEM and/or an income tax credit for 50% of the cost ($2,500 maximum) of the after-market conversion of vehicles purchased after January 1, 2001 and registered in Utah. If not previously used, the tax credit on used vehicles may be claimed. Tax credits are available for businesses and individuals and may be carried forward up to five years. Tax credits are not available for electric hybrids, except the Honda Civic hybrid. Documentation must be provided as described in the Utah state tax form TC-40V. For more information, please contact Ran Macdonald of the Utah Division of Air Quality at (801) 536-4071, or via email at [email protected]. (Reference Utah Code 59-7-605 and 59-10-127).

 

From the Utah Tax Form tc-40v:

Taxpayers may claim a nonrefundable tax credit against state individual income tax, corporate franchise tax or fiduciary tax as follows:
of the incremental cost* of a new vehicle minus any grant received, up to per vehicle registered in Utah if: 1. It is fueled by propane, natural gas, or electricity; 2. It is fueled by another fuel determined by the Air Quality Board to be as effective as the above listed fuels;or 3. It meets the clean fuel vehicle standards in the Clean Air Act;and 4. A previous owner did not take the same credit. *Incremental cost is the difference between the cost of a new vehicle and the cost of the same model without the clean fuel system. A hybrid vehicle may qualify if the same vehicle model is manufactured without the clean fuel fueling system and the hybrid vehicle otherwise meets the requirements for clean fuel vehicle. OEMVehicles:50 percent $3,000 NOTE:

Since the Prius is hybrid only we miss out

 

mouztrpd,
The Utah Legislative Session starts Monday, and I encourage you to join me in contacting your legislators to ask them to consider changing: 1) the tax credit law that restricts credit for hybrids to vehicles for which there is a conventional model available (like the HCH and presumably, the HAH and soon to be TCH), and 2) making it easier and less expensive to acquire the 'Clean Fuel Clear Air' license plate that is required for travel in the HOV lane with a single occupant.

I tried to get the plate last week when I got my new Prius and learned that while DMV only charges $10 for the plate, you must pay $82 _every year_ for the 'Clean Fuel Vehicle Permit' that qualifys one to keep the plate. Since DH's commute is reverse of traffic (south from SL to Utah County) it's not worth it to us.

Ironically, I couldn't find any specifics about the SLC free parking on our local news outlets, but the AP story mentions a required permit, so I wonder if it will really be free...

 

I sent this email to all of them:

Dear Senator (Rep),

Recently I've learned through radio advertisements and newspaper articles that the state of Utah has a Tax incentive program in place to promote the use of clean fuel vehicles.
The tax credit is available to purchasers of hybrid cars based upon the difference of the vehicle cost between the hybrid and a conventional version of the same model where the buyer receives half of this amount.
Because this is the method used for tax calculation it excludes hybrid cars where there is no conventional (non-hybrid) model to calculate the tax credit from.
The end result is a Honda Civic hybrid buyer will receive the tax break but a Toyota Prius buyer will not. Since the Civic is available in both configuration whereas the Prius is Hybrid only.
I must believe this is a unintended oversight sine the Prius matches and surpasses the Civic in fuel economy as well as being an AT-PZEV car itself. (Advanced Technology Partial Zero Emission Vehicle).
Being the owner of a Toyota Prius I would very much like to see this corrected or have it explained to me as to why a Civic owner is benefiting where I do not.

Sincerely, Henry Welch

?

 

Thanks! The more people that write the more likely it is to change!! Power to the people!

I sent my notes off today and may follow up later in the week.

 

Got one response so far:
Dear Mr. Welch,
It is my understanding that neither the Toyota Prius nor the Honda Civic hybrids receive state incentives. Other hybrids have come onto the market in the last year and don’t qualify for the incentive either.

You must be referring to a clean fuel vehicle incentive program that has been in existence long before the hybrids were available. This long existing program deals only with alternative fuel vehicles. It was reauthorized last session for an additional five years. I believe this was the third five year reauthorization.
Thanks for inquiring,
Fred R. Hunsaker

 

Other Responses I've recieced so far:

From Wayne Harper:
We looked at that issue last year and we are reviewing it again.

From Greg Bell:

Thanks for this info. I'll have my intern look into it. Taylor, check this out, please.

Greg Bell
Utah State Senate, District 22

From Mark Steinangel:
Representative Harper:

The State of Utah does have an income tax incentive of 50% (up to $2,500) of the additional cost to purchase a clean fuel vehicle, or incremental cost to convert a normal vehicle to a clean fuel vehicle. However, the incentive no longer applies to electric hybrids. House Bill 96 in the 2005 General Session stated that "for taxable years beginning on or after January 1, 2006, a taxpayer may not claim a tax credit [for clean fuel vehicles] with respect to an electric-hybrid vehicle." The bill eliminated all electric hybrids from the list of acceptable clean fuel vehicles that could be claimed under the tax credit.

Let me know if you have further questions.

Mark Steinagel

From Ran Macdonald:

Mr. Welch
As of the first of this year, there is no more tax break for hybrids. The legislation offered tax breaks to hybrids that had a gasoline equivalent because when the legislation was first written, the offer was for clean fuel vehicles that had gasoline equivalents such as natural gas vehicles. At that time, there were no hybrids available for sale. Second, the number of hybrids on the road quickly escalated and it was apparent that the small fund could not pay credits to all hybrid owners. So the tax credit was not expanded to cover all hybrids. Finally, it was decided that hybrids were selling so well, that no hybrids at all should be subsidized.
Write back if you have more questions.
Ran

To which I replied: The State of Utah could make good use of some of that $1,000,000,000 surplus by expanding this fund.

 

Hmm. I live in Utah. I'm also in a (probably) unique situation because I bought a Prius in October 2005 and then another one in January 2006 because the first one was totaled in an accident.

What's my best tax strategy, given the above responses? Can I use my 2005 purchase to claim a Utah tax credit this spring when I do my 2005 taxes? Or, as others responded, are Prius buyers out in the cold because there isn't a non-hybrid version of the Prius?

And I assume that my best strategy for the federal credit is to wait to claim it on my 2006 taxes next year?

Thanks for any advice.

 

I have a 2000 Honda Insight, thinking about trading in for an '06 Prius... I just came to the Salt Lake area from Texas a few months ago and finally registered my Insight here with the Clean Fuel plates for the HOV lane, I was shocked having to pay about $235, I have a Hybrid... I though I was supposed to get incentives?? Then I told them to forget about it, it isn't worth the trouble and they had the nerve to tell me "it's mandatory for all hybrids..." and my reply was "you wouldn't have even known it was a hybrid until I told you and mentioned that I wanted the special plates for $10 more" (which was actually more like $100 extra). Then they tell me that if they don't catch it then they must get away with it, which has to be illegal...

Also about getting the Prius, I was excited to hear that the federal tax incentive went up, but not so excited when I heard the terms and what it would actually come out to. I guess you just have to buy early in the year to get the better tax rebate?

Anyway, I would like to know how to contact a Utah state legistlative person... who should I contact about incentives? I would like to tell them how the Clean Fuel plates are not an incentive at all and that Hybrid owners (or just me) are being forced to pay an extra $85 or whatever per year for a Clean Special Fuel Vehicle Permit that is specifically for Natural Gas, Propane, or Electric vehicles, which the Insight is none of because without gasoline it will not budge. Hybrids cannot (without modification) be plugged in for electrical power so they have to generate their own power using gasoline so I feel that what they did to me is illegal. They even told me that the Permit allows Natural Gas and Propane vehicle owners to purchase those fuels "Sales Tax-free" (note that electric has no benefit to this permit as they can't discount your electrical bill, as if you could plug it in or something anyway...) and it was created because those people are not buying gasoline, so they are not paying tax on gasoline (which goes to road builing funds) so they had to have some other way of collecting money from them, hence the "Clean Special Fuel Vehicle Permit (tax)". I just couldn't get it through those peoples heads even after they had told me this, that my car RUNS ON GASOLINE, and that I am paying the tax on gasoline AND a tax for not using gasoline??? I would really like to have this law changed to allow Hybrids to obtain the Clean Fuel Vehicle plates and use the HOV lane WITHOUT the requirement of a Permit for only the advertised $10, not $200. Here we go out and buy less luxurious, less powerful, less convenient, more expensive cars just to have to pay even more to register the stupid thing (no offence to the Prius, it is a nice car but is expensive)??? Talk about incentives... it's all a big joke. I'm willing to do my part to convince legislature to propose new bills to fix these oversights.

 

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