Legislation Reduces Tax Credit, Shifts CNG Station Oversight

The Oklahoma House of Representatives has passed a piece of legislation that will decrease the state's existing tax credit for natural gas vehicles and propane autogas vehicles, as well as place regulatory authority for Oklahoma's large number of compressed natural gas (CNG) stations into the hands of a new agency.

The State Senate had already passed the bill, which the House affirmed by a 69-19 vote on Monday. The legislation, authored by Rep. Leslie Osborn, will now go to the desk of Gov. Mary Fallin for signature. With it, the Oklahoma Department of Labor will become the sole regulator for the state's CNG stations, assuming the authority currently held mainly by the Office of Management and Enterprise Services.

The bill also reduces the tax credit available for NGVs (both compressed natural gas and liquefied natural gas) and propane autogas vehicles from 50% to 45% of the incremental cost of the alternative fuel vehicle, effective for the fiscal year beginning July 1. Oklahoma's 75% tax credit for commercial natural gas and propane refueling infrastructure and 50%/$2,500 credit for home-based CNG refueling equipment are untouched.

Where does that 5% go? The legislation calls for that percentage of the incremental cost of NGVs and propane vehicles to be transferred into the state's Compressed Natural Gas Conversion Safety and Regulation Fund, which will – in effect – help pay for the state's regulatory structure for natural gas vehicles.

For more background on the bill, click here.

LEAVE A REPLY

Please enter your comment!
Please enter your name here