March 12, 2020. A measure to incentivize replacing diesel burning semitrailer trucks and other heavy-duty vehicles with cleaner options squeaked out of the Senate Tuesday on a 16-11 vote and appears headed to the governor’s office for his signature.
HB59, sponsored by Rep. Andrew Stoddard, D-Sandy, extends a tax credit for qualifying vehicles that was due to lapse this year, but phases out the monetary amount over a 10-year period.
In earlier committee discussion over the measure, Stoddard said the extension of the credit is a good option for companies looking to transform a portion of their fleet from diesel burning vehicles to alternative fuels such as natural gas, hydrogen or electric.
“This does have an air quality benefit,” he said. “This is a good bill. I think it will make a huge difference in terms of clean air.”
Stoddard said the tax credits target big trucks, the “heavy polluters,” and study over the interim indicated it would be prudent to extend them for some time, but decrease the value of the credit over time.
The bill specifies that there will be a $13,500 tax credit per vehicle in 2021 but by 2029, that credit would be reduced to $1,500. The money for the tax credits would come out of the general fund, and it is unclear at this point what the fiscal note is.