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House approves one-year tax credits for electric and plug-in vehicles to help air quality

Utah House of Representatives · February 25, 2014
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Summary

House Bill 74 passed 59-13 to expand and equalize state tax credits for all-electric and plug-in vehicles (with a one-year sunset) as part of broader air-quality measures; debate focused on cost-effectiveness, equity and whether incentives unfairly favor higher-income vehicle buyers.

The Utah House passed House Bill 74, a one-year tax-credit package aimed at increasing adoption of electric and plug-in vehicles as a tool to reduce inversion-related air pollution.

Sponsor Representative Snow said the bill equalizes credits for all-electric vehicles with compressed natural gas credits and creates a new credit level for plug-in hybrids. "If we're going to do something about the air here in a short period of time, it's going to be related to technology and innovation," Snow said, arguing incentives will stimulate demand, competition and lower prices.

Floor debate highlighted differing priorities. Representative Lifferth declared a conflict (he owns a Chevrolet Volt) and framed incentives as government picking winners; Representative Green questioned the cost-effectiveness and suggested funds might better target wood-burning stove replacements for greater emissions reductions. Supporters pointed to a one-year sunset to limit risk and to testimony from economic development leaders about business recruitment implications.

The bill passed the House 59-13 and will move to the Senate for consideration.