Search Federal and State Laws and Incentives

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 Fuel Taxes website. (Reference Utah Code 59-13-102, 59-13-201, and 59-13-301)

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

Propane, natural gas, plug-in 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 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)

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 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)

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 House Bill 180, 2020Utah Code 54-2-1)

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:

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 or $500,000 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 Alternative Fuel Heavy Duty Vehicle Tax Credit Program website.

(Reference Utah House Bill 91, 2021 and Utah Code 59-7-618, 59-10-1033, and 59-13-201)

Plug-In Electric Vehicle (PEV) Infrastructure Bond Authorization

Interlocal entities, such as counties, local districts, and military installations, are authorized to issue bonds for PEV charging infrastructure. PEV charging infrastructure is defined as any permanent equipment on commercial or industrial property that charges or stores energy for delivery to PEVs. (Reference Utah Code 11-13-103, 11-13-218, 11-42-102, and 11-42a-102)

Alternative Fuel Vehicle Conversion Grants for Businesses

The Utah Conversion to Alternate Fuel Grant Program provides grants to businesses that install conversion equipment on eligible vehicles that allow the vehicles to operate on alternative fuel or reduce a vehicle’s emissions of regulated pollutants. 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. Eligible alternative fuels include propane, 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)

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.

• 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.

Non-Residential Electric Vehicle Supply Equipment (EVSE) Rebate - Rocky Mountain Power

Rocky Mountain Power provides rebates to non-residential and multi-family customers toward the purchase of Level 2 and direct current (DC) fast EVSE. Customers installing Level 2 EVSE may receive a rebate of 75% of equipment cost, up to $1,000 for single port stations and $1,500 for multi-port stations. Customers installing DC fast EVSE may receive a rebate of 75% of equipment and installation cost, up to $30,000 for single port stations and $42,000 for multi-port stations.

Rebates are available on a first-come, first-served basis. Additional terms and conditions apply. For more information, see the Rocky Mountain Power Utah Electric Vehicle Incentives website.

Alternative Fuel Vehicle Registration Fees

Beginning in 2021, all-electric vehicle (EV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV) owners are required to pay an additional registration fee as follows:

Owners of a vehicles powered by a fuel other than motor fuel, diesel fuel, electricity, natural gas, or propane are required to pay an additional $120 registration fee. A six-month registration option with fees at prorated amounts is also available.

(Reference Utah Code 41-1a-1206)

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. Additional conditions apply. For more information, see the UDOT Road Usage Charge website.(Reference Utah Code 72-1-213)

Electric Vehicle Supply Equipment (EVSE) Rebate

The Utah Department of Environmental Quality offers rebates for up to 50% the installation cost of Level 2 and direct current (DC) fast EVSE. Utah-based businesses and non-profit organizations are eligible for a maximum rebate of $75,000 each, and governmental entities are also eligible to apply. For more information, see the Workplace Electric Vehicle Charging Funding Assistance Program website.

Residential Electric Vehicle Supply Equipment (EVSE) Rebate - Rocky Mountain Power

Rocky Mountain Power provides rebates for residential customers for the purchase of Level 2 EVSE. Level 2 EVSE purchased on or after January 1, 2020, are eligible for a rebate of 75% of equipment cost, up to $200 per EVSE. Rebates are available on a first-come, first-served basis. Additional terms and conditions apply. For more information, see the Rocky Mountain Power Utah Electric Vehicle Incentives website.

Residential Electric Vehicle Time of Use (TOU) Rate Pilot – Rocky Mountain Power

Rocky Mountain Power offers a TOU rate to residential customers that own plug-in electric vehicles. Residential customers that participate for one year are eligible for a $200 incentive. This program ends January 1, 2022. For more information, see the Rocky Mountain Power Utah Electric Vehicle Incentives website.

Electric Vehicle Supply Equipment (EVSE) Rebate Program Authorization

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

(Reference Utah House Bill 396, 2020, and Utah Code 54-4-41)

Electric Vehicle Supply Equipment (EVSE) Plan

The Utah Department of Transportation (UDOT) must lead state agencies in the creation of a statewide EVSE plan to provide electric vehicle charging facilities along certain state highways at distances no greater than every 50 miles. EVSE locations must be determined by June 30, 2021, and installed by December 31, 2025. UDOT must submit a report outlining the plan by November 30, 2020.

(Reference Utah Utah Code 72-1-215)

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)