Electricity Laws and Incentives in Utah

The list below contains summaries of all Utah laws and incentives related to electricity.

Laws and Regulations

Alternative Fuel Use and Vehicle Acquisition Requirement

At least 50% of new or replacement light-duty state agency vehicles must meet Bin 2 emissions standards established in Title 40 of the U.S. Code of Federal Regulations, or be propelled to a significant extent by electricity, natural gas, propane, hydrogen, or biodiesel.

(Reference Utah Code 63A-9-403)

Alternative Fuel Vehicle Inspection and Permit

The Utah State Tax Commission (Commission) may require vehicles operating on clean fuels to be inspected for safe operation. In addition, clean fuel vehicles that have a gross vehicle weight rating of more than 26,000 pounds or have more than three axels are required to obtain a special fuel user permit from the Commission. Clean fuels are defined as propane, natural gas, electricity, and hydrogen.

(Reference Utah Code 59-13-102, 59-13-303, and 59-13-304)

Alternative Fuel Vehicle Registration Fees

Electric vehicle (EV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV) owners and owners of vehicles powered by a fuel other than gasoline, diesel, electricity, natural gas, or propane are required to pay an additional annual registration fee. A six-month registration option with fees at lower amounts is also available. Annual fee amounts as of April 1, 2025 are as follows:

Use the Utah State Tax Commissioner Motor Vehicle Portal Fee Estimator to estimate total cost of registration and fees.

The additional registration fee paid by EVs and vehicles fueled exclusively by a fuel other than gasoline, diesel, natural gas, or propane must be equal to the maximum annual road usage charge. EV, PHEV, and HEV drivers can choose to pay the flat fee or enroll in Utah’s Road Usage Charge Program to pay for road usage based on the number of miles they drive, up to the amount of the flat fee. See the Road Usage Charge Program website for more information.

(Reference Utah Code 41-1a-1206 and 72-1-213.1)

Electric Vehicle (EV) Charging Fee and Tax

The retail sale of electricity for EV charging is subject to a 12.5% tax. The tax may be based on kilowatt hours sold, the cost to charge per hour, or a subscription fee. Additional requirements apply.

(Reference Utah Code 59-30-101 and 59-30-102)

Electric Vehicle (EV) Infrastructure Bond Authorization

Interlocal entities, such as counties, local districts, and military installations, are authorized to issue bonds for facilities or improvements, including EV charging infrastructure. EV charging infrastructure is defined as any permanent equipment on commercial or industrial property that charges or stores energy for delivery to EVs.

(Reference Utah Code 11-13-203, 11-13-218, 11-42-102, and 11-42a-102)

Electric Vehicle (EV) Plan

The Utah Department of Transportation (UDOT) must lead state agencies in the creation of a statewide EV plan to provide EV charging station facilities along certain state highways at distances no greater than every 50 miles. EV charging station locations must be installed by December 31, 2025. In August 2021, UDOT published the Utah Statewide Electric Vehicle Charging Network Plan.

(Reference Utah Code 72-1-216)

Public Utility Definition

An entity that provides electric vehicle battery charging services is not defined as a public utility, unless the entity conducts another activity in the state that subjects it to the regulation and jurisdiction of the Utah Public Service Commission. The entity must obtain the electricity from a regulated utility or electric corporation, at established rates.

(Reference Utah Code 54-2-1)

Regional Electric Vehicle (REV) West Plan

Utah joined Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, and Wyoming (Signatory States) in signing the REV West memorandum of understanding (MOU) in 2017 to create an Intermountain West Electric Vehicle (EV) Corridor that will make it possible to seamlessly drive an EV across the Signatory States’ major transportation corridors.

In 2019, the Signatory States signed a revised REV West MOU to update their EV corridor goals based on progress to date. Signatory States are committed to:

• Educate consumers and fleet owners to raise EV awareness, reduce range anxiety, and increase EV adoption;
• Coordinate on EV charging station locations to achieve a consistent user experience across Signatory States;
• Use and promote the REV West Voluntary Minimum Standards for EV charging stations and explore opportunities for implementing the standards in Signatory States;
• Identify and develop opportunities to incorporate EV charging stations into planning and development processes such as building codes, metering policies, and renewable energy generation projects;
• Encourage EV manufacturers to stock and market a wide variety of EVs within the Signatory States;
• Identify, respond to, and collaborate on funding opportunities to support the development of the plan; and
• Support the build-out of direct current (DC) fast charging stations along EV corridors through investments, partnerships, and other mechanisms.

The Signatory States maintain a coordination group composed of senior leadership from each state who meet on a quarterly basis and report on the above actions. This group is now convened as ChargeWestTM. In 2021, ChargeWest published an EV Charging needs Assessment for the region. For more information, see the ChargeWest website.

Road Usage Charge Program

The owner of an all-electric vehicle (EV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV) may enroll in the Utah Department of Transportation’s (UDOT) mileage-based roadway operations and maintenance fee program in lieu of paying additional EV, PHEV, or HEV registration fees. To participate, the owner or lessee must enroll, report mileage driven, and pay the road usage fee for each payment period. Fees are usually adjusted annually for inflation, according to the consumer price index (CPI) in the event it is greater than zero. Road use fees are as follows:

A six-month option with a lower maximum road use fee is available. UDOT may adjust the mileage fee, and the Utah Tax Commission may adjust the maximum annual fee amount annually based on inflation. Additional conditions apply. For more information, see the UDOT Road Usage Charge website.

(Reference Utah Code 72-1-213.1)

Utility Electric Vehicle (EV) Charger Programs Authorization

The Utah Public Service Commission is authorized to establish a large-scale utility EV charging station program, with a maximum cost of $50,000,000. The program may include utility-owned EV charging stations, a new EV charging station rate structure, and a public education plan. Utilities implementing EV charging station programs must submit annual progress reports by June 1 for the previous calendar year.

(Reference Utah Code 54-2-1 and 54-4-41)

State Incentives

Alternative Fuel Vehicle Conversion Grants

The Utah Department of Environmental Quality (DEQ) Conversion to Alternate Fuel Grant Program provides grants to businesses and government entities that install conversion equipment on eligible vehicles that allows the vehicles to operate on alternative fuel. Award recipients are required to pass these savings along to the individual who purchases the converted vehicle. Grants may cover 50% of the cost of conversion, up to $2,500. Eligible vehicles must operate solely on alternative fuel and may include on-road vehicles and off-road equipment. Eligible alternative fuels include propane, natural gas, and electricity. For more information, see the DEQ Conversion to Alternative Fuel Grant Program website. The alternative fuel vehicle conversion grant is available through July 1, 2029.

(Reference Utah Code 19-1-403.3, 19-2-301 through 19-2-304, and 63I-1-259)

Alternative Fuel Vehicle Decal and High Occupancy Vehicle (HOV) Lane Exemption

Propane, natural gas, all-electric, plug-in hybrid electric, and hydrogen vehicles are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must display the special decal issued by the Utah Department of Transportation (UDOT). This program expired September 30, 2025. For more information about qualifying vehicles and the exemption, see the UDOT Clean Fuel Vehicle Decal and Permit website.

(Reference Utah Code 41-1a-416, 41-6a-702, 59-13-102, and 72-6-121)

Clean Fleet Grants

The Utah Department of Environmental Quality (DEQ) administers the Clean Fleet Program. The Clean Fleet Program provides reimbursement grants, up to a certain percentage, to fleets to replace existing fleet vehicles and non-road diesel equipment with all-electric (up to 45% reimbursement, including charging equipment and installation), low-nitrogen oxides (NOx) (up to 35% reimbursement), or new diesel (up to 25% reimbursement) vehicles. Replacement vehicles that are low-NOx can be compressed natural gas or diesel engines pursuant to California Air Resources Board Optional Low-NOx Standards. Grants must be used to replace vehicles and equipment that meet age and operational requirements. Replaced vehicles and equipment must be permanently disabled within 90 days of putting the replacement vehicle or equipment into service. For more information, including eligibility requirements, see the Utah Clean Fleet Program website.

Electric Vehicle Emissions Inspections Exemption

Vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections.

(Reference Utah Code 41-1a-1223 and 41-6a-1642)

Natural Gas and Electric Vehicle Weight Exemption

A vehicle primarily powered by natural gas or electric battery power may exceed the state’s gross vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system or the weight of the vehicle with the electric battery power system and the weight of a comparable vehicle with a diesel tank and fueling system. The maximum gross weight may not exceed 82,000 pounds.

(Reference Utah Administrative Code R909-2-5)

Propane and Electricity Tax Exemptions

Propane and electricity used to operate motor vehicles are exempt from state motor fuel taxes. For more information, see the Utah State Tax Commission website.

(Reference Utah Code 59-13-102, 59-13-201, and 59-13-301)

Qualified Heavy-Duty Alternative Fuel Vehicle (AFV) Tax Credit

Taxpayers may be eligible for a tax credit for the purchase of a qualified heavy-duty AFV. The qualified heavy-duty AFV tax credit is available through July 1, 2029. Qualifying fuels include natural gas, electricity, and hydrogen. Each qualified heavy-duty AFV is eligible for the following tax credit amounts:

Year	Credit Amount
2023	$12,000
2024	$10,500
2025	$9,000
2026	$7,500
2027	$6,000
2028	$4,500
2029	$3,000
2030	$1,500

At least 50% of the qualified vehicle’s miles must be driven in the state. A single taxpayer may claim credits for up to 10 AFVs annually. If more than 30% of the total available tax credits in a single year have not been claimed by May 1, a taxpayer may apply for credits for an additional eight AFVs. Up to 25% of the tax credits are reserved for taxpayers with small fleets of less than 40 vehicles. Additional conditions and restrictions may apply. For more information, see the Utah Department of Environmental Quality Alternative Fuel Heavy Duty Vehicle Tax Credit Program website.

(Reference Utah Code 59-7-618 and 63I-1-259 and House Bill 3005, 2024)

Utah's National Electric Vehicle Infrastructure (NEVI) Program

The U.S. Department of Transportation’s (DOT) NEVI Formula Program required the Utah Department of Transportation (UDOT) to submit an annually updated EV Infrastructure Deployment Plan (Plan) for fiscal years 2022 through 2026 to their FHWA Division Office, describing how the state intended to distribute NEVI funds and their physical and cybersecurity strategies, and including a Community Engagement Outcomes Report. The submitted plans must address updated NEVI Guidance.

For more information about Utah’s NEVI planning process, see the UDOT Plan website.

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