Utah Laws and Incentives

Listed below are the summaries of all current Utah laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

• State Incentives (9)
• Utility / Private Incentives (4)
• Laws and Regulations (20)

State Incentives

Utah's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Utah Department of Transportation (UDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Utah’s NEVI planning process, see the UDOT Electric Vehicle Charging Plan website. To review Utah’s NEVI plan, see the Joint Office State Plans for EV Charging website.

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. 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.

Electric Vehicle (EV) Charging Station Rebate

The Utah Department of Environmental Quality (DEQ) offers rebates of up to 50% of the cost to purchase and install Level 2 and direct current fast charging (DCFC) stations. Utah-based businesses and non-profit organizations are eligible for a maximum rebate of $75,000 each. Government entities are also eligible to apply. For more information, see the DEQ Workplace EV Charging Funding Assistance Program website.

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 purchase clean vehicles or install conversion equipment on eligible vehicles that allows the vehicles to operate on alternative fuel or reduces a vehicle’s emissions of regulated pollutants. Award recipients are required to pass these savings along to the individual who purchases the converted vehicle. Grants may cover 100% of the cost of purchasing a clean vehicle or 50% of the cost of conversion, up to $2,500. Eligible clean 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.

(Reference Utah Code 19-1-401 through 19-1-403.3, and 19-2-301 through 19-2-304)

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)

Hydrogen Fuel Production Incentives

Businesses that convert natural gas to hydrogen fuel, or produce natural gas solely for use in the production of hydrogen fuel for zero emission vehicles (ZEVs), may be eligible for an oil and gas severance tax credit. Each eligible applicant may receive a tax credit equal to the amount of the severance tax owed, up to $5 million per year. Entities that produce hydrogen fuel for use in ZEVs or hydrogen fueled trucks may also qualify for grant funding or loans from the Utah Department of Workforce Services Community Impact Fund.

(Reference Utah Code 35A-8-302 and 59-5-102)

Natural Gas Vehicle (NGV) Weight Exemption

A vehicle primarily powered by natural gas 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 and the weight of a comparable vehicle with a diesel tank and fueling system. The NGV maximum gross weight may not exceed 82,000 pounds.

(Reference Utah Administrative Code R909-2-5)

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

Propane, natural gas, all-electric, and plug-in hybrid electric vehicles are permitted to use HOV lanes, regardless of the number of passengers. Qualified vehicles must display the special clean fuel decal issued by the Utah Department of Transportation (UDOT); a limited number of decals are available. This exemption expires September 29, 2025. For more information about qualifying vehicles and decal availability, see the UDOT Clean Fuel Vehicle Decal and Permit website.

(Reference Utah Code 41-1a-416, 41-1a-418, 41-6a-702, 59-13-102, and 72-6-121)

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)

Utility / Private Incentives

City of Murray - Utah

City of Murray is a municipal utility that operates in Utah. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the City of Murray website.

Residential Incentives

Non-Residential Incentives

Lehi City Corporation - Utah

Lehi City Corporation is a municipal utility that operates in Utah. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Lehi City Corporation website.

Residential Incentives

Non-Residential Incentives

Morgan City - Utah

Morgan City is a municipal utility that operates in Utah. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Morgan City website.

Residential Incentives

Non-Residential Incentives

Rocky Mountain Power - Utah

Rocky Mountain Power is an investor-owned utility (IOU) that operates in multiple states. This page provides a summary of the types of incentives provided by the utility related to alternative fuels and vehicles. For more information on these incentives, see the Rocky Mountain Power website.

Residential Incentives

Non-Residential Incentives

Laws and Regulations

Alternative Fuel Vehicle Registration Fees

All-electric vehicle (EV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV) owners are required to pay an additional annual registration fee. Fee amounts are as follows:

Owners of vehicles powered by a fuel other than gasoline, diesel, electricity, natural gas, or propane are required to pay an additional $138.50 registration fee. A six-month registration option with fees at prorated amounts is also available.

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.

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

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. Road use fees are as follows:

In 2023, a six-month option with a prorated maximum road use fee will also be available. Beginning in 2024, UDOT may adjust the mileage fee and the Utah Tax Commission may adjust the maximum annual fee amount. Additional conditions apply. For more information, see the UDOT Road Usage Charge website.

(Reference Utah Code 72-1-213.1)

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) 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. For more information, see the REV West website.

Natural Gas and Hydrogen Tax

Compressed natural gas (CNG) and hydrogen are taxed at a rate of $0.20 per gasoline gallon equivalent (GGE). Liquefied natural gas (LNG) is taxed at a rate of $0.20 per diesel gallon equivalent (DGE). One GGE is equal to 5.660 pounds (lbs.) of CNG or 2.198 lbs. of hydrogen. One DGE is equal to 6.06 lbs. of LNG. The tax rate for natural gas and hydrogen will be annually adjusted by the State Tax Commission (Commission) not to exceed $0.225 per GGE or DGE. The Commission will publish the adjusted fuel tax no later than 60 days prior to the effective date. For more information, see the Utah State Tax Commission Fuel Tax Rates website.

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

Compressed Natural Gas (CNG) Vehicle Aftermarket Conversion Requirements

Vehicles converted to operate on CNG must be inspected and certified in accordance with relevant safety standards by a CSA America-certified CNG Fuel System Inspector. The vehicle must also be tested to ensure that it meets emissions standards in the applicable county, or the county with the most lenient emissions standards if the vehicle is registered in a county without its own emissions standards. A person who performs a conversion must certify to the vehicle owner that the conversion does not tamper with, circumvent, or otherwise affect the vehicle’s on-board diagnostic system, if applicable. A CSA America-certified CNG Fuel System Inspector must also inspect the vehicle every three years, or every 36,000 miles, and after a collision occurring at a speed greater than five miles per hour.

The Utah Division of Air Quality may develop programs to facilitate coordination between government agencies and the private sector regarding emissions and anti-tampering compliance testing, vehicle safety, and potential improvements in the air quality of the state.

(Reference Utah Code 19-1-406)

Natural Gas Rate and Cost Recovery Authorization

The Utah Public Service Commission (Commission) may allow a gas corporation to set a natural gas vehicle fuel rate that is less than full cost of service if it is reasonable and in the interest of the public. If the Commission approves such a request, the remaining costs may be spread to other customers of the gas corporation.

The Commission may also allow a gas corporation to recover expenditures directly related to the construction, operation, and maintenance of natural gas fueling stations and related facilities through an incremental surcharge to all of its rate classes. The Commission may allow this only if it finds that the expenditures are reasonable, do not exceed $5 million in any calendar year, are in the interest of the public, and will result in an annual incremental increase in revenue greater than 50% of the corporation’s annual revenue requirement for the stations and facilities.

The Commission may also allow a gas corporation to establish a natural gas incentive or program to support the use of natural gas, including renewable natural gas, if it is reasonable and in the interest of the public. If the Commission approves such a request, the remaining costs may be spread to other customers of the gas corporation.

(Reference Utah Code 54-4-13.1 and 54-4-13.4)

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)

Automated Vehicle (AV) Operation Support

All local agencies, political subdivisions, or other entities must facilitate the proper operation of AVs in Utah. AVs are motor vehicles equipped with automated driving systems technology that allows vehicle automation to perform the entire driving task on a sustained basis.

AVs must follow all applicable federal and state traffic and motor vehicle safety, insurance, accident reporting, titling, and registration laws and regulations. Other conditions may apply.

(Reference Utah Code 41-26-102.1 through 41-26-108)

Low-Speed Vehicle Access to Roadways

Low-speed vehicles are only allowed access to roadways with speeds limits of up to 35 miles per hour (mph), must comply with all federal and state motor vehicle regulations, and are required to display a slow-moving vehicle identification emblem on the rear of the vehicle. Low-speed vehicles are defined as four-wheel electric vehicles that are not golf carts or off-road vehicles, operate at speeds up to 25 mph, and may carry up to four passengers. Low-speed vehicles are subject to vehicle taxation requirements, including those related to special fuels and are exempt from emission inspections.

(Reference Utah Code 41-6a-102, 41-6a-1508, 59-13-102, and 59-13-201)

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)

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-9-401 and 63A-9-403)

Electric Vehicle (EV) Infrastructure Bond Authorization

Interlocal entities, such as counties, local districts, and military installations, are authorized to issue bonds for 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 11-13-103, 11-13-203, 11-13-218, 11-42-102, and 11-42a-102)

Idle Reduction Requirement

Idling of any unattended vehicle is prohibited in Utah. Violators are subject to a penalty of up to $750 and/or up to 90 days imprisonment. Drivers on state roads are also encouraged to avoid excessive idling, which, is defined as more than 10 to 15 seconds for passenger vehicles. Specifically, drivers are encouraged to turn off engines when loading or unloading, delivering, and picking up or dropping off passengers. Drivers of gasoline powered passenger vehicles are encouraged to limit engine warm-up time to 30 seconds and drivers of diesel powered passenger vehicles, buses, and trucks are encouraged to limit engine warm-up to the time the vehicle manufacturer recommends, which is generally less than five minutes. Businesses, schools, airport authorities, and governmental entities are encouraged to post signs to discourage customer idling.

(Reference Utah Code 41-6a-202, 41-6a-1401, 41-6a-1403, 76-3-204, and 76-3-301)

School Bus Idle Reduction Regulations

School bus drivers must turn off bus engines as soon as possible at loading and unloading areas and only restart the engine when it is time to depart. Exceptions include extreme weather conditions and idling in traffic. At bus depots, drivers are required to limit engine warm-up to the time recommended by the engine manufacturer. All school bus drivers in the state receive a minimum of 30 minutes of idling reduction instruction during their annual service training. In addition, school districts must revise bus schedules to maximize efficiency and assign the cleanest buses to the longest routes. For more information, see the Utah State Board of Education Pupil Transportation website and the Utah School Bus Idling Standards.

(Reference Utah Code 41-6a-1308 and Utah Administrative Code 277-601-1 through 277-601-3)

Electric Vehicle (EV) Charging Station Rebate Program Authorization

The Utah Public Service Commission is authorized to establish a large-scale 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)

Local Vehicle Idling Regulations

A local highway authority may not enact an ordinance that prohibits or restricts an owner or operator of a vehicle from idling the vehicle’s engine, unless the ordinance is primarily educational, specifies that a person must be issued at least three warnings before a fine is imposed, has the same fine structure as a parking violation, provides for the safety of law enforcement personnel enforcing the ordinance, and specifies that the ordinance may be enforced on public property or private property that is open to the general public. Exceptions apply.

(Reference Utah Code 41-6a-208)

Clean Air Fund

Individuals filing a Utah state income tax return may designate a contribution to the Clean Air Fund. The Utah Department of Air Quality will distribute funds annually for programs to educate the public on the importance of air quality, such as the use of alternative fuel vehicles.

(Reference Utah Code 59-10-1304 and 59-10-1319)

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 determined by June 30, 2021, and installed by December 31, 2025. In August 2021, UDOT published the Utah Statewide Electric Vehicle Charging Network Plan.

(Reference Utah Code 72-1-216)

Hydrogen Development Support

The Utah Office of Energy Development’s Department of Natural Resources must establish a Hydrogen Advisory Council (Council). The Council may:

• Promote research, develop resources, and engage with the public to facilitate the use of hydrogen;
• Collaborate with stakeholders to create hydrogen development goals;
• Identify funding opportunities for hydrogen projects;
• Support the development of multiple hydrogen feedstocks; and
• Review and recommend policies related to hydrogen deployment in Utah.

(Reference Utah Code 79-6-106)

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)