Oklahoma’s Propane and Natural Gas Vehicle Incentives Will Live Until 2020


Oklahoma Gov. Mary Fallin has approved H.B.2005, which extends the state's tax credits for alternative fuel vehicles and refueling infrastructure until Jan. 1, 2020.

The bill, which was introduced in January and spearheaded by state Reps. Skye McNiel and Seneca Scott and state Sen. Rick Brinkley, provides a tax credit equal to 50% of the cost of new alt-fuel conversion equipment or the incremental cost of a new OEM alt-fuel vehicle.

The legislation covers three fuel types: compressed natural gas (CNG), liquefied natural gas (LNG) and propane autogas.

Provisions for vehicles powered by hydrogen fuel cells are also included in the bill, but the credits apply only retroactively to tax year 2010 – which, in effect, makes the credits moot for fuel cells.

Similarly, tax credits for the purchase of electric vehicles (EVs) have been eliminated. However, incentives for public-access EV chargers – equal to 75% of the cost of such equipment – were included in the legislation.

Oklahoma will also see another several years of support for the refueling infrastructure that natural gas and propane vehicles will need.

First of all, the bill contains a provision specifically for new, non-commercial CNG refueling infrastructure – in other words, at-home CNG refueling equipment. Each Oklahoma residence is eligible for a tax credit equal to 50% of the cost of that equipment, capped at $2,500.

Secondly, the legislation covers large-scale commercial CNG, LNG and propane autogas refueling projects that are aimed at fleets and other transportation uses. Like the credit for EV chargers, the bill allows a per-location credit of 75% of the cost of the CNG, LNG or propane refueling property (excluding the associated building, garages, etc.).

The Oklahoma Tax Commission confirmed with NGT News that there is no dollar cap on the program, and vehicles in all weight classes – from light-duty pickup trucks to heavy-duty Class 8 assets – are eligible for the credit. Also, the credits are applicable on a per-vehicle basis.

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