DAR File No. 37990

Environmental Quality, Air Quality

Rule R307-121

General Requirements: Clean Air and Efficient Vehicle Tax Credit

Notice of Proposed Rule

(Amendment)

DAR File No.: 37990
Filed: 09/12/2013 12:45:56 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Legislature revised the statute governing the state's Clean Fuel Tax Credit during the 2013 General Legislative Session. H.B. 96 (2013) modified the eligibility requirements to claim the tax credit.

Summary of the rule or change:

The following rule changes have been proposed: removing the definitions for "Fuel economy standards" and "Plug-in Electric Drive Motor Vehicle"; adding a definition for "Qualifying electric or hybrid vehicle"; and adding a requirement that the purchase order, customer invoice or receipt, and the current Utah vehicle registration be in the name of the taxpayer in order to receive the credit. In addition, other technical changes were made throughout the rule to clarify and help administer the Clean Fuel Tax Credit.

State statutory or constitutional authorization for this rule:

• Section 59-7-605
• Section 19-2-104
• Section 19-1-402
• Section 59-10-1009

Anticipated cost or savings to:

the state budget:

These rule changes are to align with the new requirements of H.B. 96 (2013). The changes may result in more applicants for the vehicle tax credit. However, any additional expenses associated with awarding more credits should not result in any additional costs to the state budget.

local governments:

There are no new requirements for local government; therefore, there are no anticipated costs or savings.

small businesses:

There are no new requirements for small businesses; therefore, there are no anticipated costs or savings.

persons other than small businesses, businesses, or local governmental entities:

There are no new requirements for persons other than small businesses, businesses, or local government entities; therefore, there are no anticipated costs or savings.

Compliance costs for affected persons:

The changes to the demonstration of eligibility requirements do not result in any additional compliance costs.

Comments by the department head on the fiscal impact the rule may have on businesses:

There are no new requirements for businesses; therefore, the agency does not anticipate this rule change having a measurable fiscal impact on businesses.

Amanda Smith, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Environmental Quality
Air QualityRoom Fourth Floor
195 N 1950 W
SALT LAKE CITY, UT 84116-3085

Direct questions regarding this rule to:

• Mark Berger at the above address, by phone at 801-536-4000, by FAX at 801-536-0085, or by Internet E-mail at [email protected]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

10/31/2013

This rule may become effective on:

12/05/2013

Authorized by:

Bryce Bird, Director

R307. Environmental Quality, Air Quality.

R307-121. General Requirements: Clean Air and Efficient Vehicle Tax Credit.

R307-121-1. Authorization and Purpose.

This rule is authorized by Sections 59-7-605 and 59-10-1009. These statutes establish criteria and definitions used to determine eligibility for an income tax credit. R307-121 establishes procedures to provide proof of purchase, in accordance with 59-7-605(3) or 59-10-1009(3), to the director for an OEM vehicle or the conversion of a motor vehicle or special mobile equipment for which an income tax credit is allowed under Sections 59-7-605 or 59-10-1009.

 

R307-121-2. Definitions.

[Definitions.  ]The following additional definitions apply to R307-121.

"Air quality standards" means air quality standards as defined in Subsection 59-7-605(1)(a) and 59-10-1009(1)(a).

"Clean fuel" means clean fuel as defined in Subsection 19-1-402(1).

"Clean fuel vehicle" means clean fuel vehicle as defined in Subsection 19-1-402(2).

"Conversion equipment" means a package [which]that may include fuel, ignition, emissions control, and engine components that are modified, removed, or added to a motor vehicle or special mobile equipment to make that motor vehicle or equipment eligible for the tax credit.

["Fuel economy standards" means fuel economy standards as defined in Subsection 59-7-605(1)(f) and 59-10-1009(1)(f) or 31 miles per gallon equivalent for a plug-in electric drive motor vehicle.

"Miles per gallon equivalent" means the miles a vehicle can drive with the energy equivalent of one gallon of gasoline.

]"Motor Vehicle" means a motor vehicle as defined in 41-1a-102.

"Original equipment manufacturer(OEM) vehicle" means original equipment manufacturer(OEM) as defined in Subsection 19-1-402(8).

"Original purchase" means original purchase as defined in Subsection 59-7-605(1)([i]g) and 59-10-1009(1)([i]g).

"Qualifying electric or hybrid vehicle" means qualifying electric or hybrid vehicle as defined in 59-7-605(1)(h) or 59-10-1009(1)(h).

["Plug-in Electric Drive Motor Vehicle" means plug-in electric drive motor vehicle as defined in Subsection 59-7-605(1)(a)(ii) or 59-10-1009(1)(a)(ii).

]"Window Sticker" means the label required by United States Code Title 15 Sections 1231 and 1232, as effective [February 1, 2010]January 3, 2012.

 

R307-121-3. Proof of Purchase to Demonstrate Eligibility for OEM [Compressed ]Natural Gas Vehicles.

To demonstrate that an OEM [Compressed N]natural [G]gas motor vehicle is eligible for the tax credit, proof of purchase shall be made in accordance with 59-7-605(3) or 59-10-1009(3), by submitting the following documents to the director:

(1)(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 [Compressed N]natural [G]gas 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 eligible OEM vehicle;

(2) an original or copy of the purchase order, customer invoice, or receipt that [including]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; and

(3) a copy of the current Utah vehicle registration in the name of the taxpayer seeking the credit.

 

R307-121-4. Proof of Purchase to Demonstrate Eligibility for [Motor Vehicles that meet Air Quality and Fuel Economy Standards]Qualifying Electric or Hybrid Vehicles.

To demonstrate that a motor vehicle is [eligible for the tax credit based on air quality and fuel economy standards]a qualifying electric or hybrid vehicle, proof of purchase shall be made, in accordance with 59-7-605(3) or 59-10-1009(3), by submitting the following documents to the director:

[(1) a copy of the motor vehicle's window sticker, which includes its VIN, or equivalent manufacturer's documentation;

] ([2]1) 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;

([3]2) an original or copy of the purchase order, customer invoice, or receipt that [including]includes the name of the taxpayer seeking the credit, the name of the seller of the qualifying electric or hybrid vehicle, the VIN, purchase date, and price of the motor vehicle;

([4]3) the underhood identification number or engine group of the motor vehicle; and

([5]4) a copy of the current Utah vehicle registration in the name of the taxpayer seeking the credit.

 

R307-121-5. Proof of Purchase to Demonstrate Eligibility for Motor Vehicles Converted to a Clean Fuel[Natural Gas or Propane].

To demonstrate that a conversion of a motor vehicle to be fueled by a clean fuel[natural gas or propane] is eligible for the tax credit, proof of purchase shall be made, in accordance with 59-7-605(3) or 59-10-1009(3), by submitting the following documentation to the director:

[(1) the VIN;

(2) the fuel type before conversion;

(3) the fuel type after conversion;

(4)(a) a copy of the motor vehicle inspection report from an approved county inspection and maintenance station showing that the converted motor vehicle meets all county emissions requirements for all installed fuel systems if the motor vehicle is registered within a county with an inspection and maintenance (I/M) program, or

(b) in all other areas of the State, a signed statement by an ASE-certified technician that includes the VIN, the technician's ASE certification number, and states that the conversion is functional;

(5) each of the following:

(a) the conversion equipment manufacturer,

(b) the conversion equipment model number,

(c) the date of the conversion, and

(d) the name, address, and phone number of the person that converted the motor vehicle;

(6) the EPA Certificate of Conformity, or equivalent documentation that is consistent with requirements outlined in 40 CFR Part 85 and 40 CFR Part 86, as published in Federal Register Volume 76 Page 19830 on April 8, 2011, or an Executive Order from the California Air Resources Board showing that the conversion will meet the proof of certification requirements in 59-10-1009(1)(c)(i)(C) or 59-7-605(1)(c)(i)(C);

]([7]1) an original or copy of the purchase order, customer invoice, or receipt that includes the name of the taxpayer seeking the credit; the name, address, and phone number of the person that converted the motor vehicle to run on a clean fuel; the VIN; the date of conversion; and the price of the conversion equipment installed on the motor vehicle; and

([8]2) a copy of the current Utah vehicle registration in the name of the taxpayer seeking the credit.

 

[R307-121-6. Proof of Purchase to Demonstrate Eligibility for Motor Vehicles Converted to Electricity.

(1) To demonstrate that a conversion of a motor vehicle to be powered by electricity is eligible for the tax credit, proof of purchase shall be made, in accordance with 59-7-605(3) or 59-10-1009(3), by submitting the following documentation to the director:

(a) the VIN;

(b) the fuel type before conversion;

(c) the fuel type after conversion;

(d) each of the following:

(i) the conversion equipment manufacturer,

(ii) the conversion equipment model number,

(iii) the date of the conversion, and

(iv) the name, address, and phone number of the person that converted the motor vehicle;

(e) an original or copy of the purchase order, customer invoice, or receipt; and

(f) a copy of the current Utah vehicle registration.

(2) If the converted motor vehicle does not have any auxiliary sources of combustion emissions, then the applicant shall submit a signed statement by an ASE-certified technician that includes the VIN, the technician's ASE certification number, and states that the conversion is functional, and that the converted motor vehicle does not have any auxiliary source of combustion emissions.

(3) If the converted motor vehicle has an auxiliary source of combustion emissions, then the applicant shall submit:

(a) a copy of the vehicle inspection report from an approved county inspection and maintenance station showing that the converted motor vehicle meets all county emissions requirements for all installed fuel systems if the motor vehicle is registered within a county with an I/M program, or

(b) in all other areas of the State, a signed statement by an ASE-certified technician that includes the VIN, the technician's ASE certification number, and states that the conversion is functional, and

(c) Provide the EPA Certificate of Conformity or equivalent documentation that is consistent with requirements outlined in 76 FR 19830 April 8, 2011, or an Executive Order from the California Air Resources Board showing that the conversion will meet the proof of certification requirements in 59-10-1009(1)(c)(i)(C) or 59-7-605(1)(c)(i)(C).

 

]R307-121-[7]6. Proof of Purchase to Demonstrate Eligibility for Special Mobile Equipment Converted to Clean Fuels.

To demonstrate that a conversion of special mobile equipment to be fueled by clean fuel is eligible for the tax credit, proof of purchase shall be made, in accordance with 59-7-605(3) or 59-10-1009(3), by submitting the following documentation to the director:

(1) a description, including serial number, of the special mobile equipment for which credit is to be claimed[;

(2) the fuel type before conversion;

(3) the fuel type after conversion;

(4) the conversion equipment manufacturer and model number;

(5) the date of the conversion;

(6) the name, address and phone number of the person that converted the special mobile equipment]; and

([7]2) an original or copy of the purchase order, customer invoice, or receipt that includes the name of the taxpayer seeking the credit, the serial number, the date of conversion, and the price of the conversion equipment installed on the special mobile equipment.[; and

(8) the EPA Certificate of Conformity, or an Executive Order from the California Resource Board showing that the conversion will meet the proof of certification requirements in 59-10-1009(1)(c)(ii)(B) or 59-7-605(1)(c)(ii)(B).

 

R307-121-8. Applicability.

(1) The definitions of plug-in electric drive motor vehicle and fuel economy standards in R307-121-2 shall apply to all purchases as of January 1, 2011.

(2) Provisions found in sections R307-121-5(6) and R307-121-6(3)(c) shall apply to all conversions as of April 8, 2011.

]

KEY: air pollution, alternative fuels, tax credits, motor vehicles

Date of Enactment or Last Substantive Amendment: [January 1, 2012]2013

Notice of Continuation: January 23, 2012

Authorizing, and Implemented or Interpreted Law: 19-2-104; 19-1-402; 59-7-605; 59-10-1009