Alternative Fuel Heavy-Duty Vehicle Tax Credit Program

This credit is for Utah businesses purchasing heavy-duty commercial trucks (Class 7 or 8) running on natural gas, 100% electric, or hydrogen-electric power. You'll receive a tax credit starting at $15,000 in 2021 and declining by $1,500 annually through 2030, though you must reserve the credit before purchase and submit registration and manufacturer documentation within 180 days to claim it.

Vehicles must be original equipment manufacturer alternative-fuel heavy-duty trucks (Class 7 or 8, never previously titled or registered) with qualifying natural gas, all-electric, or hydrogen-electric drivetrains documented via window sticker, manufacturer paperwork, or ASE/CSA technician certification. Customers face an annual limit of 18 credits per taxpayer and declining credit amounts, so early purchasing captures higher incentives.

Utah's income tax credit program runs through tax year 2030 with a fixed schedule declining from $15,000 to $1,500, targeting commercial fleets transitioning to alternative fuels. Applicants must reserve credits pre-purchase via the state form and submit proof of OEM status plus purchase and registration documents within 180 days; an 18-credit annual limit per taxpayer prevents over-claiming. Program is administered by the Utah Department of Environmental Quality Division of Air Quality.