As part of its tax-reform package, the Legislature extended and improved its income and corporate franchise tax credits for renewable energy systems, which had been scheduled to expire. The extensions, sponsored by Sen. Howard Stephenson, R-Draper, should make the credits more attractive both for businesses and residential developers who might use solar, wind, geothermal or biomass systems. Credits for homeowners also were extended.
Legislators also passed HB110, sponsored by Rep. Fred Hunsaker, R-Logan, to increase the fuel efficiency of the state's vehicle fleet, and HB351, sponsored by Rep. Roger Barrus, R-Centerville, to create a $5 million revolving loan fund for school districts to make buildings more energy efficient.
Unfortunately, these laws will not do much to reduce the pollution from Utahns' vehicle tailpipes, which are trapped by temperature inversions in the state's valleys. To accomplish that, we'll all have to drive less, and when we do, operate more fuel-efficient hybrid cars and trucks.
So it is disappointing that lawmakers did not pass HB122, which would have provided a state income-tax credit for clean, efficient vehicles, regardless of which fuel or technology they use. Utah currently awards a credit for up to half of the incremental cost of an alternative-fuel vehicle, so one that runs on natural gas, for example, qualifies. But the most promising technology, a gasoline-electric hybrid like the Toyota Prius, does not qualify for the credit because it does not run on an alternative fuel.
Rep. Roz McGee, D-Salt Lake City, sponsored HB122, which would have fixed that. A version made it through the House but died in the Senate.
Utah also should follow the lead of Western states that are requiring a greater portion of their energy supplies to come from renewable sources. New Mexico recently doubled its standard, from 10 percent by 2010 to 20 percent by 2020. That is expected to give solar power generation in that state a big boost.
Utah should follow the lead of Western states that are requiring a greater portion of their energy supplies to come from renewable sources.
