Search Federal and State Laws and Incentives

Alternative Fuel Vehicle and Fueling Infrastructure Grants and Loans

The Utah Clean Fuels and Vehicle Technology Grant and Loan Program, funded through the Clean Fuels and Vehicle Technology Fund, provides grants and loans to assist businesses and government entities to include:

• Up to 50% of the incremental cost of purchasing original equipment manufactured clean fuel vehicles,
• Up to 50% of the cost of converting vehicles to a cleaner burning fuel, and
• The cost of fueling equipment for public/private sector business and government vehicles (grants require federal and non-federal matching funds).

Alternative Fuel Vehicle Conversion Grants for Businesses

The Utah Conversion to Alternate Fuel Grant Program, funded through the Clean Fuels and Vehicle Technology fund, provides grants to businesses that install conversion equipment on eligible vehicles. Businesses are required to pass these savings along to the individual who purchases the converted vehicle. Grants are available for 50% of the cost of conversion, up to $2,500. This program does not support E85 or biodiesel projects. This program defines clean fuels to include propane, compressed natural gas, and electricity. For more information, see the Utah Conversion to Alternative Fuel Grant Program website.

(Reference Utah Code 19-1-401, 19-1-402, 19-1-403.3, and 19-1-405)

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 $5,000,000 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 Community Impact Fund. (Reference Utah Code 35A-8-302 and 59-5-102)