HB 29: Energy Efficient Vehicle Tax Incentive Amendments (Rep. Handy)
Electric vehicles, or EVs, which can run fully or partially on electricity, present a critical opportunity to improve air quality along the Wasatch Front. Unfortunately, a tax credit that helped Utahns make the switch to cleaner electric vehicles expired on December 31st, 2016. With your help, we can bring it back and help Utah make the transition to more energy efficient vehicles in order to make a greater impact on air quality in Utah!
WHAT THIS BILL DOES
- Extends Utah’s successful energy efficient vehicle tax credit through 2021 (expired at the end of 2016). Phases out the incentive for new electric vehicles between 2017 and 2022.
- Makes the credit assignable, allowing a vehicle purchaser to assign the tax credit to a financing entity at the point of sale.
- Requires annual review to study the impact of the tax credit.
- Limits funding from the Education Fund to $125,000 per year.
- Limits the eligibility of the tax credit to those who operate electric vehicles within counties that are designated as “nonattainment” for air quality.
WHY THIS BILL IS NEEDED
- The tax credit has been effective, propelling Utah into the top ten states for electric vehicle adoption; allowing the credit to expire would eliminate these gains.
- Electric vehicles represent only 0.4% of Utah’s total new passenger vehicles bought between 2011 and 2016
- Electric vehicles have a significantly higher purchase price than their gasoline counterparts, and extending this tax credit will give Utahns a valuable tool to help clean our state’s air.
- Rocky Mountain Power has been awarded a $4 million grant to build out EV infrastructure over the next few years and to help tackle our significant and costly air quality problems, but we need the energy efficient vehicles to make use of it!
- Electric vehicles bring Utah air quality and economic benefits (see talking points below)
CALL TO ACTION
- Contact the Heads of House Appropriations and Senate Appropriations to plug the importance of funding HB 29: Energy Efficient Tax Incentive Amendments. Although this bill is still in the House, you can start contacting them right away.
- Contact YOUR state representative and ask them to please vote in favor of HB 29: Energy Efficient Tax Incentive Amendments. Find your state representative by clicking here. Be sure to mention that you are a constituent!
Talking points (from Utah Clean Energy):
AIR QUALITY BENEFITS
This bill helps tackle Utah’s air quality problems by getting more of the cleanest vehicles onto Utah’s roads. As compared to standard gasoline vehicles:
- Fully electric vehicles reduce local emissions by 60% – 99%
- Plug-in hybrid electric vehicles reduce local emissions by 30% – 65%
- By 2035 the total economic benefit to Utah drivers could reach $43 million per year in reduced fuel costs.
- Improved air quality boosts economic development by retaining and attracting new businesses.
- 44% of the fuel consumed in Utah is imported from out of the state. Dollars not spent on fuel imports will grow Utah’s economy and support local job creation.