Oklahoma Natural Gas Laws and Incentives
State Incentives
Alternative Fuel Vehicle (AFV) Tax Credit
Until January 1, 2010, Oklahoma provides a one-time income tax credit for 50% of the cost of converting a vehicle to operate on an alternative fuel, or for 50% of the incremental cost of purchasing a new Original Equipment Manufacturer AFV. The state also provides a tax credit for 10% of the total vehicle cost, up to $1,500, if the incremental cost of a new AFV cannot be determined or when an AFV is resold, as long as a tax credit has not been previously taken on the vehicle. The alternative fuels eligible for the credit are compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), methanol, and electricity. For qualified electric vehicle property propelled by electricity only, the basis for the credit is the full purchase price of the vehicle. For vehicles also equipped with an internal combustion engine, such as a hybrid electric vehicle, the basis for the credit is limited to the portion of such motor vehicle which is attributable to the propulsion of the vehicle by electricity. For more information, see Oklahoma Income Tax Form 511CR (PDF 219 KB). (Reference Senate Bill 1558, 2008, and Oklahoma Statutes 68-2357.22) Download Adobe Reader
Alternative Fueling Infrastructure Tax Credit
The state provides a tax credit for up to 50% of the cost of installing alternative fueling infrastructure. These tax credits may be carried forward for up to three years and expire January 1, 2010. The alternative fuels eligible for the credit include compressed natural gas (CNG), liquefied natural gas (LNG), liquefied petroleum gas (LPG), methanol, and electricity. (Reference Senate Bill 1558, 2008, and Oklahoma Statutes 68-2357.22)
Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Loans
The Department of Central Services has an Alternative Fuels Loan program to help convert government-owned fleets to operate on alternative fuels. This program provides 0% interest loans for converting vehicles to operate on an alternative fuel, for the construction of fueling infrastructure, and for the incremental cost associated with the purchase of an Original Equipment Manufacturer AFV. The program provides up to $10,000 per converted or newly purchased vehicle and up to $150,000 for fueling infrastructure. Repayment is made from fuel savings during a maximum seven-year period. If the price of alternative fuels does not remain below the price of the conventional fuel that was replaced, repayment is suspended. Eligible applicants include state and county agencies and divisions, municipalities, school districts, mass transit authorities, and public trust authorities. (Reference Oklahoma Statutes 74-130.4)
Alternative Fuel Vehicle (AFV) Loans
Oklahoma has a private loan program with a 3% interest rate for the cost of converting private fleets to operate on alternative fuels, for the incremental cost of purchasing an Original Equipment Manufacturer AFV, and for the installation of AFV refueling infrastructure. The repayment of the loan is made from fuel savings during a maximum three-year period.
State Laws and Regulations
Alternative Fuel Vehicle (AFV) Acquisition Requirements
Under the Alternative Fuels Conversion Act, all school and government vehicles may be converted to operate on an alternative fuel, and all school districts should consider only purchasing school vehicles which have the capability to operate on an alternative fuel. The Act also requires all school and government vehicles capable of operating on an alternative fuel to use the fuel whenever a refueling station is in operation within a five-mile radius of the respective department or district and the price of the alternative fuel is cost competitive. If school and government vehicles must be refueled outside the five-mile radius and no refueling station is reasonably available, the school and government vehicles are exempt from this requirement. (Reference Oklahoma Statutes 74-130.3)
Alternative Fuel Labeling Requirement
In lieu of the motor fuel excise tax, Oklahoma imposes an annual flat fee on motor vehicles including passenger automobiles, pickup trucks, vans and heavy-duty vehicles using liquefied petroleum gas, compressed natural gas (CNG), liquefied natural gas (LNG), methanol, or blends of 85% methanol and 15% gasoline (M85). CNG, LNG, methanol, and M85 vehicles weighing less than one ton gross vehicle weight are taxed at a rate of $100 per vehicle per year, and vehicles weighing more than one ton gross vehicle weight are taxed at a rate of $150 per vehicle per year. Vehicles must display a decal issued on a yearly basis by the Oklahoma Tax Commission. (Reference Oklahoma Statutes 68-723)
Alternative Fuel Vehicle (AFV) Technician Training
The Alternative Fuels Technician Certification Act regulates the training, testing, and certification of technicians who install, modify, repair, or renovate equipment used in the fueling of AFVs and the conversion of any engine to an alternative fueled engine. This includes Original Equipment Manufacturer engines dedicated to operate on an alternative fuel. Electric vehicles (EVs), electric charging stations, and EV technicians must also comply with the rules and regulations of this Act. (Reference Oklahoma Statutes 74-130.11 through 74-130.24)
