Skip to content

Grants & Incentives

Alternative Fuel Data Center (AFDC)

Explore clean fuel opportunities by using the Alternative Fuels Data Center (AFDC) Laws and Incentive page. The AFDC is a trusted resource that provides a comprehensive list of federal and state grants, incentives, and laws specifically tailored to alternative fuels and transportation. Stay up-to-date with the latest offerings to support your clean transportation initiatives.

Updated February 2024

State Incentives

Vehicle Repair and Replacement Assistance Program (VRRAP)

The Vehicle Repair and Replacement Assistance Program (VRRAP) provides funding assistance to individuals whose vehicles are failing vehicle emission standards to either replace their failing vehicle with a newer, cleaner one or to repair it. The programs are administered by local health departments and made possible through a grant sub-award to them from the Utah Division of Air Quality.

Eligible Region(s): Box Elder, Cache, Davis, Salt Lake, Tooele, and Weber Counties

Click Here to Learn More

Conversion to Alternative Fuel Grant Program

Program Overview

The Conversion to Alternative Fuel Grant Program allows businesses that convert vehicles to run on natural gas, propane, or electricity to apply for a grant of up to $2,500 per conversion. The conversion business is then required to pass along the savings to the owner of the eligible vehicle being converted.

There are two steps in the process of obtaining a grant.

Step 1: Preliminary Approval Application

The Preliminary Approval Application process will determine if the proposed project is eligible for an Alternative Fuel Grant and if there are adequate funds for the proposed conversion. All applicants must obtain preliminary approval. To obtain preliminary approval, one of the following applications for the alternative fuel must be submitted: Electric , Natural, and Propane

After submitting the Preliminary Application, the applicant will receive an email that will indicate the status of the application. If the Preliminary Application is approved, the applicant will have up to 60 calendar days from the date of the email to submit a complete Final Approval Application. If the Final Approval Application is not received within the 60 calendar days, the funding may no longer be available for the conversion.

Step 2: Final Approval and Payment Process

Once the vehicle has been converted, the applicant must complete the Final Approval Application (see below) and submit all the required documentation for the appropriate conversion. The final invoice must include a receipt signed by the vehicle owner that includes the itemized costs and demonstrates that the grant has been passed on to the vehicle owner.

Learn More

Alternative Fuel Heavy-Duty Vehicle Tax Credit

Qualified taxpayers may claim a non-refundable tax credit for the purchase of a Category 7 or Category 8 natural gas, 100% electric, or a hydrogen-electric vehicle. These tax credits are limited.

The state provides an income tax credit for the qualified purchase of a natural gas, a 100% electric, or a hydrogen-electric heavy-duty vehicle which is defined in 59-7-618.1 and 59-10-1033.1 UCA as a commercial category 7 or 8 vehicle that has never been titled or registered. Class 7 and Class 8 vehicles are classified by the gross vehicle weight rating, which is also known as their GVWR. A Class 7 vehicle has a GVWR between 26,001 and 33,000 pounds. A Class 8 vehicle has a GVWR higher than 33,000 pounds. These vehicles usually have three axles, but some will have five axles in order to haul a trailer with substantial weight on it. Some examples would be a 5-axle tractor-trailer (Semi or 18-wheeler), cement trucks, dump trucks, and refuse haulers. Operators of Class 7 and 8 trucks must have a commercial driver’s license, also called a CDL.

The Utah Legislature authorized the credit during the 2021 General Session for tax year 2021 through 2030. The following table shows the tax credit for each tax year.

Eligible Region(s): Statewide

Click Here for more information

Utah Clean Diesel Program

Program Overview

This program is designed to assist fleet owners in Utah in replacing or upgrading old, dirty diesel vehicles with newer, cleaner options. This incentive assists the following replacement projects under these requirements:

Vehicles

  • On-Highway, Class 5-8 Diesel Vehicles, Engine Model Years 2009 and Older
  • School, Shuttle, and Transit Buses
  • Medium-Heavy-Duty or Heavy-Heavy-Duty Diesel Trucks

Equipment

  • Nonroad Diesel Equipment
  • <50 – 751+ horsepower Nonroad Engines or Equipment, engine model years 1986+ -used in:
    • Construction;
    • Handling of Cargo (including at a port or airport);
    • Agriculture;
    • Mining; or
    • Energy Production (including stationary generators and pumps).

Eligible Region(s):

Statewide, with preference given to PM2.5 and Ozone Non-attainment Areas

Click here for more information

Utah Partner Incentives

UDOT: Road Usage Charge Program

Utah roads are maintained using taxes from gasoline sales. As vehicles become more fuel efficient and the number of electric vehicles grows, the Utah Department of Transportation and Division of Motor Vehicles is changing to a per-mile fee as a way for drivers to pay their portion of roadway operations and maintenance.

Utah’s Road Usage Charge Program is voluntary for electric and hybrid vehicle owners. UDOT and DMV have contracted with emovis to operate the program. The choice is yours.

Click Here to Learn More

Federal Incentives

Federal Alternative Fuel and Infrastructure Tax Credits

Several alternative fuel federal tax credits have been extended including tax credits for biodiesel, CNG and propane, and for fueling infrastructure for E85, biodiesel, CNG, propane and electricity, including residential. Be sure to take a look at the Alternative Fuels Data Center to see what’s changed and how you can take advantage of these updated tax credits.

USDOE: Federal Tax Credits for All-Electric and Plug-in Hybrids

Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After

Federal Tax Credit Up To $7,500
All-electric, plug-in hybrid, and fuel cell electric vehicles purchased new in 2023 or after may be eligible for a federal income tax credit of up to $7,500.

The availability of the credit will depend on several factors, including the vehicle's MSRP, its final assembly location, battery component and/or critical minerals sourcing, and your modified adjusted gross income (AGI).

Federal Tax Credits for Pre-owned Plug-in Electric and Fuel Cell Vehicles

Federal Tax Credit Up To $4,000
Pre-owned all-electric, plug-in hybrid, and fuel cell electric vehicles purchased on or after January 1, 2023, may be eligible for a federal income tax credit. The credit equals 30% percent of the sale price up to a maximum credit of $4,000.

EV buyers can reduce the upfront cost of their new or used purchase by the amount of their Clean Vehicle Credit by transferring the credit to the dealer. This is great for EV affordability.

Click here for more information

USDOT: R.O.U.T.E.S Toolkit for Rural Oppurtunities

Toolkit for the Rural Opportunities to Use Transportation for Economic Success (R.O.U.T.E.S.)

The United States Department of Transportation (USDOT) has developed this Applicant Toolkit to provide guidance as part of the Rural Opportunities to Use Transportation for Economic Success (R.O.U.T.E.S.) Initiative to support potential applicants in identifying and navigating USDOT discretionary grant funding opportunities for rural transportation projects. In support of the initiative’s goals, this toolkit provides user-friendly information and resources to support rural applicants’ understanding of USDOT discretionary grant programs and the funding process.

The Applicant Toolkit is designed for all levels of grant applicant experience, aiming to enhance access to USDOT resources for rural transportation projects. Specifically, this toolkit illustrates key applicant activities when participating in the USDOT discretionary grants process, catalogues USDOT discretionary grant programs by applicant type and eligible project activities in a USDOT Discretionary Grant Funding Matrix, and provides resources for applicants to maximize the potential for award success.

R.O.U.T.E.S. will embark on three activities:

  1. Collecting input from stakeholders on the benefits rural projects offer for safety and economic outcomes, as well as the type and degree of assistance rural projects require;
  2. Providing user-friendly information to rural communities to enhance understanding about DOT’s infrastructure grant options;
  3. Improving DOT’s data-driven approaches to better assess needs and benefits of rural transportation infrastructure projects

Click here to learn more

Fleet EV Resources

Have a Question?

Reach Out >

The Utah Clean Cities and Communities  Board of Directors and staff welcomes inquiries from interested community members, businesses and organizations. You’ll find our team helpful and inclusive. We look forward to helping you get started with the Utah Clean Cities and Communities membership, opening up involvement with one (or more) of our many programs or grants today!