Oklahoma Alternative Fuel
Tax Incentives
March 2,
2005
The following Oklahoma income tax credits available for the
purchase of certain alternative fuel vehicles or the installation of certain
alternative fuel refueling stations and charge stations are in effect until
January 1, 2009:
- A
one-time, 50% income tax credit is allowed on the incremental cost
for OEM alternative fuel vehicles. Allowable alternative fuels include
compressed natural gas, liquefied natural gas, liquefied petroleum gas,
M-85 (85 percent methanol, 15 percent gasoline blend), and electricity.
This tax credit extends to low-speed electric vehicles as defined by NHTSA
in 49 C.F.R. 571.500 and to forklifts and other similar self-propelled
vehicles. Tax credits may be applied to hybrid electric vehicles only to
the extent (percentage) that they are propelled by electricity. (O.S.
§68-2357.22 and O.S. §68-2101)
- A
one-time 50% income tax credit is allowed on after-market alternative fuel
conversion charges for conventional fuel vehicles. (O.S. §68-2357.22)
- In the
case of an AFV resale, or if the incremental cost of the vehicle cannot be
determined, a tax credit of 10% of the total value of the vehicle up to
$1,500, is allowed if a tax credit has not been previously taken on the
vehicle. (O.S. §68-2357.22)
- A tax
credit of 50% is allowed on the cost of alternative fuel refueling
equipment including compression equipment and storage tanks. (O.S.
§68-2357.22)
- A 0%
loan fund is available for the conversion of government fleets to alternative
fuels, as well as for the incremental cost of OEM vehicles. The 0%
revolving loan fund is also available to government entities (i.e. state,
counties, municipalities, school districts, mass transit authorities and
public trust authorities) for the installation of alternative fuel
refueling stations. Contact the Oklahoma Dept. of Central Services,
405.521.2206. (O.S.§74-130.4)
- A 3%
loan fund is available for the conversion of private fleets to alternative
fuels, as well as for the incremental cost of OEM vehicles and the
installation of alternative fuel refueling stations. Contact the Oklahoma
Dept. of Commerce, 405.815.5365.
Other Oklahoma Alternative Fuel
Laws and Regulations
- Flat fee alternative fuels excise tax:
Oklahoma levies an annual flat fee on CNG, LNG and LPG in lieu of a motor
fuel excise tax. CNG, LNG, and methanol or M-85 use is taxed at $100 per
year per vehicle for passenger automobiles, pickup trucks or vans not
exceeding one ton in capacity. LPG is taxed at a rate of $50 per year per
vehicle for vehicles not exceeding one ton in capacity. All AFVs exceeding
one ton in capacity are taxed at $150 per vehicle. (O.S. §68-723)
- Alternative Fuels Technician Certification:
The Oklahoma Alternative Fuels Technician Certification Act states it is
unlawful for anyone to perform the work of an alternative fuels technician
until certified. (O.S. §74-130.11 through 130.24)
- School districts to consider alternative fuel
buses: All Oklahoma school districts are encouraged to consider
only purchasing school vehicles that have the capability to operate on an
alternative fuel. (O.S.§74-130.3)
- Licensing and operation of Neighborhood Electric
Vehicles on public roads: Effective November 1, 2001, Oklahoma
provides a definition of “low-speed electric vehicle” (Neighborhood
Electric Vehicle) and establishes on-road operating parameters for low
speed electric vehicles (low speed electric vehicles may not be operated
on any street or highway with a posted speed limit greater than 35 mph).
The statute does not prevent a city from adopting any ordinance to further
restrict low-speed electric vehicles from operating on certain city-owned
streets in order to ensure the public health and safety. (O.S. §47-1-134.1
and O.S. §68-2101 and O.S. §47-11-805.1)
·
State government and school AFVs required to use alternative
fuels: All school vehicles and all state government vehicles that
are converted or manufactured to operate on an alternative fuel are required to
use that fuel whenever a fill station or charge station is in operation within
a five-mile radius of the respective department, district, agency, office, or
political subdivision that has vehicles converted or manufactured to operate on
an alternative fuel, and the price of the alternative fuel is comparable to the
price of the fuel being displaced. (O.S. §74-130.3)
- Ethanol production tax credit:
Oklahoma allows a tax credit for ethanol production facilities of 20 cents
($0.20) per gallon of ethanol produced before denaturing beginning January
1, 2004 and ending December 31, 2010. The credit is allowed for 60 months
beginning with the first month for which the facility is eligible to
receive the credit and may only be claimed if the ethanol facility
maintains an average production rate of at least 25 percent of its name
plate design capacity for at least six (6) months after the first month
for which it is eligible to received the credit. (O.S. § 68-2357.66)
