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House advances clean-fuels incentives: tax credits raised and grant program proposed

Utah House of Representatives · February 17, 2000
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Summary

House passes HB 323 to extend the clean-fuel program five years, create a new grant program for vehicle conversions administered by the Department of Community and Economic Development, and raise corporate and individual tax credits to $3,000; passage vote was 62-9.

The Utah House on Feb. 17 approved House Bill 323 to extend and expand the state's clean-fuel vehicle incentives. Representative Wayne A. Harper, sponsor, said HB 323 does three things: extend the clean fuels program sunset by five years, create a grant program under the Department of Community and Economic Development for purchases or conversions of alternative-fuel vehicles, and raise individual and corporate income tax credits from $500 to $3,000 (implementation effective Jan. 1, 2001).

Harper said the bill shifts roughly half the money in the clean fuel loan program into grants to help public and private entities with conversion costs, and that the change would cost about $34,000 more a year than recent averages. Supporters — citing air-quality goals and federal fleet mandates — urged members to back the bill to help fleets and public entities meet conversion requirements. Representative Gowan keyed in on emissions reductions and urged support.

Opponents, including Representative Rowan, argued against converting loan funds into grants because grants are not repaid and represent a direct taxpayer cost. The sponsor and other backers said the $3,000 cap focuses assistance on public fleets required to comply with federal mandates and that the program had been vetted with state agencies and the Clean Cities Coalition.

The House approved HB 323 62-9 and the bill will be sent to the Senate for further consideration.