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House adopts performance‑based clean‑vehicle tax credit in energy package
Summary
House Bill 122 (fourth substitute) replaces the prior $3,000 original‑equipment credit with a $1,000 performance‑based SmartWay Elite tax credit, closes a used‑vehicle loophole, preserves conversion credits, and was approved by the House (68–0–7).
The Utah House on Feb. 15 passed fourth substitute House Bill 122, a tax‑credit measure designed to promote highly efficient and low‑emission vehicles.
Sponsor Representative Rosalynn McGee summarized the bill as technology‑neutral and performance‑based, replacing an existing $3,000 manufacturer credit with a $1,000 SmartWay Elite credit and eliminating a loophole that allowed older, used vehicles to qualify. The bill maintains credits for conversions to clean fuels and removes a requirement that clean‑fuel vehicle owners purchase an annual special fuel tax certificate.
Representative Barris supported the bill and emphasized its role in improving energy security and air quality; he cited a rise in U.S. dependence on foreign oil from 42% a decade ago to 56% today. The bill had unanimous committee support in Revenue and Tax and passed the House by recorded vote (68 yes, 0 no, 7 absent). It will be forwarded to the Senate for further action.
Proponents framed the measure as part of a larger energy package and emphasized the need for performance‑based standards that can adapt as vehicle technology changes. The bill’s fiscal and administrative details were considered in committee.
