Oklahoma Hybrid Electric Vehicle Laws and Incentives

State Incentives

Alternative Fuel Vehicle (AFV) Tax Credit

For tax years beginning before January 1, 2015, 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. Equipment used for conversions must be new and must not have been previously used to modify or retrofit any vehicle. The alternative fuels eligible for the credit are compressed natural gas, liquefied natural gas, liquefied petroleum gas, hydrogen fuel cell, and electricity. For qualified electric vehicles propelled by electricity only, the credit is based on the full purchase price of the vehicle. For vehicles equipped with an internal combustion engine, such as a hybrid electric vehicle, the credit is based on the portion of the 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 House Bill 1949, 2009, and Oklahoma Statutes 68-2357.22) Download Adobe Reader

Alternative Fueling Infrastructure Tax Credit

For tax years beginning before January 1, 2015, the state provides a tax credit for up to 75% of the cost of installing alternative fueling infrastructure. Alternative fuels eligible for the credit include compressed natural gas (CNG), liquefied natural gas, liquefied petroleum gas, hydrogen, and electricity. The infrastructure must be new and must not have been previously installed or used to fuel alternative fuel vehicles. The tax credit may be carried forward for up to five years. Beginning January 1, 2010, a tax credit is also available for up to 50% of the cost of installing a residential CNG fueling system, up to $2,500. (Reference House Bill 1949, 2009, and Oklahoma Statutes 68-2357.22)

State Laws and Regulations

State Energy Efficiency and Conservation Plans

Each state agency is required to develop and implement an energy efficiency and conservation plan. These agencies should make every effort to include in their plans purchasing preferences for vehicles that utilize alternative fuel sources, including compressed natural gas, hybrid technology, and biofuels. (Reference Senate Bill 833, 2009)