DAQ-2025-002319

State of Utah
Administrative Rule Analysis
Revised May 2024
NOTICE OF FIVE-YEAR REVIEW AND STATEMENT OF CONTINUATION
Rule Number:
R307-122
Filing ID: Office Use Only
Effective Date:
Office Use Only
Agency Information
1. Title catchline:
Environmental Quality, Air Quality
Building:
Multi Agency State Office Building
Street address:
195 N 1950 W
City, state
Salt Lake City, UT
Mailing address:
PO BOX 144820
City, state and zip:
Salt Lake City, UT 84114-4820
Contact persons:
Name:
Phone:
Email:
Mat Carlile
385-306-6535
[e-mail]
Jazmine Lopez
801-536-4050
[e-mail]
Please address questions regarding information on this notice to the persons listed above.
General Information
2. Rule catchline:
R307-122. General Requirements: Heavy Duty Vehicle Tax Credit.
3. A concise explanation of the particular statutory provisions under which the rule is enacted and how these provisions authorize or require this rule:
R307-122 is enacted under the authority granted by Utah Code Sections 59-7-618.1 and 59-10-1033.1, which establish the income tax credits available for the purchase of qualified heavy-duty
vehicles. Subsections 59-7-618.1(6)(a) and 59-10-1033.1(6)(a) specifically require the purchaser to provide proof of a qualified purchase to the director to claim the tax credit.
Utah Code Section 19-2-104 grants the Air Quality Board the authority to make rules under Title 63G, Chapter 3, Utah Administrative Rulemaking Act. This statutory authority empowers
the Board to establish procedures through R307-122 to ensure compliance with the requirements for claiming the income tax credit.
These statutory provisions collectively authorize the creation and continuation of R307-122 to define the necessary procedures for demonstrating eligibility for the tax credit, ensuring
that the process remains transparent, consistent, and aligned with legislative intent.
4. A summary of written comments received during and since the last five-year review of this rule from interested persons supporting or opposing this rule:
No written comments have been received since the previous review in August 2020.
5. A reasoned justification for continuation of this rule, including reasons why the agency disagrees with comments in opposition to this rule, if any:
R307-122 remains essential to ensure proper administration of the income tax credits established under Utah Code Sections 59-7-618.1 and 59-10-1033.1 for the purchase of qualified heavy-duty
vehicles. The rule provides a clear framework for verifying proof of qualified purchases, ensuring compliance with statutory requirements, and preventing misuse of tax credits.
By defining procedures for documentation and verification, R307-122 maintains accountability, promotes administrative efficiency, and protects public funds. Continuation of the rule
is necessary to uphold the integrity of the tax credit program and fulfill the Air Quality Board’s statutory responsibility under Utah Code Section 19-2-104.
Agency Authorization Information
To the agency: Information requested on this form is required by Section 63G-3-305. Incomplete forms will be returned to the agency for completion, possibly delaying publication in
the Utah State Bulletin.
Agency head or designee and title:
Bryce C. Bird, Director, Division of Air Quality
Date:
04/08/2025
Reminder: Text changes cannot be made with this type of rule filing. To change any text, please file an amendment or a nonsubstantive change.
R307. Environmental Quality, Air Quality.
R307-122. General Requirements: Heavy Duty Vehicle Tax Credit.

R307-122-1. Authorization and Purpose.(1) This rule is authorized by Sections 59-7-618.1 and 59-10-1033.1. These statutes establish criteria and definitions used to determine eligibility
for an income tax credit.(2) Rule R307-122 establishes procedures to provide proof of a qualified purchase, in accordance with Subsections 59-7-618.1(6)(a) or 59-10-1033.1(6)(a), to
the director for a qualified heavy duty vehicle for which an income tax credit is allowed under Sections 59-7-618 or 59-10-1033.
R307-122-2. Definitions.The following additional definitions apply to Rule R307-122."Heavy duty vehicle" means heavy duty vehicle as defined in Subsection 59-7-618.1(1)(c) and 59-10-1033.1(1)(c)."Original
equipment manufacturer (OEM) vehicle" means original equipment manufacturer (OEM) as defined in Subsection 19-1-402(8)."Qualified heavy duty vehicle" means qualified heavy duty vehicle
as defined in Subsections 59-7-618.1(1)(e) and 59-10-1033.1(1)(e)."Qualified purchase" means qualified purchase as defined in Subsections 59-7-618.1(1)(f) and 59-10-1033.1(1)(f)."Qualified
taxpayer" means qualified taxpayer as defined in Subsections 59-7-618.1(1)(g) and 59-10-1033.1(1)(g).
R307-122-3. Reservation of a Qualified Heavy Duty Vehicle Tax Credit.(1) A qualified taxpayer shall reserve a qualified heavy-duty vehicle tax credit before submitting proof of qualified
purchase to obtain approval from the division for the heavy duty vehicle tax credit. A qualified taxpayer shall apply to reserve the tax credit on forms provided by the division, which
will include the following:(a) the name of the qualified taxpayer and the qualified taxpayers registered name with the United States Department of Transportation (USDOT),(b) the last
four digits of the qualified taxpayer's social security number (SSN) or employer identification number (EIN),(c) the qualified taxpayer's address, and(d) the qualified taxpayer's USDOT
number.(2) The tax credit shall be reserved for the qualified taxpayer for up to 180 calendar days from the division's approval of the request to reserve the credit.(3) If the qualified
taxpayer does not meet all of the requirements of Rule R307-122-4 before 181 calendar days after the division's approval of the request to reserve the tax credit, the tax credit will
no longer be reserved for the qualified taxpayer.
R307-122-4. Proof of Qualified Purchase for a Qualified Heavy Duty Vehicle.To demonstrate that a heavy duty vehicle is eligible for the tax credit, proof of qualified purchase shall
be made in accordance with Subsections 59-7-605(6)(a) or 59-10-1009(6)(a), by submitting the following documents to the director:(1)(a) a copy of the motor vehicle's window sticker,
which includes its Vehicle Identification Number (VIN), or equivalent manufacturer's documentation showing that the heavy duty vehicle:(i) is an OEM natural gas vehicle;(ii) has a
100% electric drivetrain; or(iii) has a hydrogen-electric drivetrain; or(b)a signed statement by either an Automotive Service Excellence (ASE)-certified technician or Canadian Standards
Association (CSA) America CNG Fuel System Inspector that includes the VIN, the technician's ASE or CSA America certification number, and states that the heavy duty vehicle:(i) is an
OEM natural gas vehicle;(ii) has a 100% electric drivetrain; or(iii) has a hydrogen-electric drivetrain;(2)an original or copy of the purchase order, customer invoice, or receipt that
includes the name of the qualified taxpayer seeking the credit, the name of the seller of the heavy duty vehicle, the VIN, purchase date, and price of the heavy duty vehicle;(3) a copy
of the current Utah vehicle registration in the name of the qualified taxpayer seeking the credit; and(4) the certification required under Subsections 59-7-618.1(2)(b) and 59-10-1033.1(2)(b).
KEY: air pollution, alternative fuels, tax credits, heavy duty vehicles
Date of Enactment or Last Substantive Amendment: August 3, 2017
Notice of Continuation: August 5, 2020
Authorizing, and Implemented or Interpreted Law: 19-2-104; 19-1-402; 59-7-618.1; 59-10-1033.1