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EV Incentives

Tax credits can help reduce the cost of purchasing a new electric vehicle. The State of Utah offers a tax credit of up to $1,500 (set to expire Dec. 31 2016), and the Federal tax credit can be as much as $7,500!  Tax Credit amounts vary based on the purchaser's tax liability and the specific vehicle.  Altogether, you could be eligible for $9,000 in incentives!  These incentives are set to expire, so the time to go electric is now!

Federal Tax Credits:

Tax Credit Amount:

PurchaseUp to $7,500, based on the kilowatt-hour capacity of the battery

Lease - Varies. Only the original purchaser of the vehicle is eligible for the tax credit, so most leasing companies will claim the credit and pass the savings on to the leasee via lower monthly lease payments. 

Details: The Federal tax credit is available for the purchase or lease of new qualifying electric vehicles. The amount of the credit is based on the battery capacity of the car, with a cap of $7,500. The battery capacity of the car must be at least 5 kilowatt-hours, for which you receive a credit of $2,500. An additional $417 is added to the credit for each additional kilowatt-hour of battery capacity up to the $7,500 cap. 

Expires: Set to expire when a given manufacturer has sold 200,000 qualifying electric vehicles in the U.S. (no manufacturer has reached this cap yet).

More Information: U.S. IRS Plug-in Electric Drive Federal Tax Credit webpage

Utah Clean Fuel Tax Credit:

Tax Credit Amount:

Purchase - 35% of the purchase price, up to $1,500 (for an all-electric vehicle) or $1,000 (for a plug-in hybrid vehicle)

Lease - Varies.  The customer leasing a vehicle is responsible for claiming the state tax credit.  The amount of the credit is based on the value of the vehicle at the start and the end of the lease. Learn how to calculate the credit amount for leases.

Details: The state tax credit is available for the original purchase or lease of qualifying electric or plug-in hybrid vehicles. The amount of the state tax credit is based on whether the vehicle is a "qualifying electric vehicle" and fueled by electricity only, or a "qualifying plug-in hybrid vehicle" and fueled by a combination of electricity and another fuel, such as gasoline. These definitions are determined in state statute. The state tax credit is non-refundable and can be carried forward for five years.  

Expires: The State's Clean Fuel Vehicle Tax Credit is currently authorized through the end of 2016. 

More Information: Clean Fuel Vehicle Tax Credit 

If you have questions about the Clean Fuel Vehicle Tax Credit, please contact Mat Carlile with the Utah Department of Environmental Quality at 801-536-4136.

*Consult with a tax attorney regarding your eligibility for the aforementioned incentives.  U Drive Electric makes no guarantees about the availability of incentives or participant ability to take advantage of the incentives.

Required Documents for Utah Clean Fuel Tax Credit:

Purchase:

  • Proof that vehicle is an OEM natural gas, propane, qualifying electric or qualifying plug-in hybrid vehicle, provide one of the following:

    • (a)a copy of the motor vehicle's window sticker, which includes its Vehicle Identification Number (VIN), or equivalent manufacturer's documentation showing that the motor vehicle is an OEM natural gas, propane, qualifying electric or qualifying plug-in hybrid vehicle, or

    •  (b) a signed statement by either an Automotive Service Excellence (ASE)-certified technician or Canadian Standards Association (CSA) America CNG Fuel System Inspector that includes:

      • the vehicle identification number (VIN),
      • the technician's ASE or CSA America certification number, and states that the motor vehicle is an OEM natural gas, propane, qualifying electric or qualifying plug-in hybrid vehicle; 
  • an original or copy of the purchase order, customer invoice, or receipt that includes
    • the name of the taxpayer seeking the credit,
    • the name of the seller of the motor vehicle,
    • the VIN,
    • purchase date, and
    • price of the motor vehicle; 
  • a copy of the current Utah vehicle registration in the name of the taxpayer seeking the credit;
  • an original or copy of the odometer disclosure statement required in Utah Code Annotated Title 41 Chapter 1a Section 902 for the motor vehicle that was acquired as an original purchase; and
  • the underhood identification number or engine group of the motor vehicle. 

Lease:

  • Proof that vehicle is an OEM natural gas, propane, qualifying electric or qualifying plug-in hybrid vehicle, provide one of the following:
    • a copy of the motor vehicle's window sticker, which includes its Vehicle Identification Number (VIN), or equivalent manufacturer's documentation showing that the motor vehicle is an OEM natural gas, propane, qualifying electric or qualifying plug-in hybrid vehicle; or, 
    • a signed statement by either an Automotive Service Excellence (ASE)-certified technician or Canadian Standards Association (CSA) America CNG Fuel System Inspector that includes:
      • the vehicle identification number (VIN),
      • the technician's ASE or CSA America certification number, and states that the motor vehicle is an OEM natural gas, propane, qualifying electric or qualifying plug-in hybrid vehicle;
  • an original or copy of the lease agreement  that includes: 
    • the name of the taxpayer seeking the credit;
    • the name of the lessor of the qualifying electric or hybrid vehicle;
    • the VIN;
    • the beginning date of lease;
    • the value of the vehicle at the beginning of the lease, and,
    • the value of the vehicle at the end of the lease;