{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2357.22v2","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2357.22v2","heading":"Credit for investments in qualified clean-burning","body":"motor vehicle fuel property.\n\nA. For tax years 2028 and before, there shall be allowed a one-\n\ntime credit against the income tax imposed by Section 2355 of this\n\ntitle for investments in qualified clean-burning motor vehicle fuel\n\nproperty placed in service on or after January 1, 1991, or with\n\nrespect to a hydrogen fuel cell, on or after the effective date of\n\nthis act.\n\nB. As used in this section, “qualified clean-burning motor\n\nvehicle fuel property” means:\n\n1. Equipment installed to modify a motor vehicle which is\n\npropelled by gasoline or diesel fuel so that the vehicle may be\n\npropelled by compressed natural gas, a hydrogen fuel cell, liquefied\n\nnatural gas, or liquefied petroleum gas. The equipment covered by\n\nthis paragraph must:\n\na. be new, not previously used to modify or retrofit any\n\nvehicle propelled by gasoline or diesel fuel and be\n\ninstalled by an alternative fuels equipment technician\n\nwho is certified in accordance with the Alternative\n\nFuels Technician Certification Act,\n\nb. meet all Federal Motor Vehicle Safety Standards set\n\nforth in 49 CFR 571, or\n\nc. for any commercial motor vehicle (CMV), follow the\n\nFederal Motor Carrier Safety Regulations or Oklahoma\n\nIntrastate Motor Carrier Regulations;\n\n2. A motor vehicle originally equipped so that the vehicle may\n\nbe propelled by compressed natural gas, a hydrogen fuel cell, or\n\nliquefied natural gas or liquefied petroleum gas but only to the\n\nextent of the portion of the basis of such motor vehicle which is\n\nattributable to the storage of such fuel, the delivery to the engine\n\nof such motor vehicle of such fuel, and the exhaust of gases from\n\ncombustion of such fuel;\n\n3. Property, not including a building and its structural\n\ncomponents, which is:\n\na. directly related to the delivery of compressed natural\n\ngas, liquefied natural gas or liquefied petroleum gas,\n\nor hydrogen for commercial purposes or for a fee or\n\ncharge, into the fuel tank of a motor vehicle\n\npropelled by such fuel including compression equipment\n\nand storage tanks for such fuel at the point where\n\nsuch fuel is so delivered but only if such property is\n\nnot used to deliver such fuel into any other type of\n\nstorage tank or receptacle and such fuel is not used\n\nfor any purpose other than to propel a motor vehicle,\n\nor\n\nb. a metered-for-fee, public access recharging system for\n\nmotor vehicles propelled in whole or in part by\n\nelectricity. The property covered by this paragraph\n\nmust be new, and must not have been previously\n\ninstalled or used to refuel vehicles powered by\n\ncompressed natural gas, liquefied natural gas or\n\nliquefied petroleum gas, hydrogen, or electricity;\n\n4. Property which is directly related to the compression and\n\ndelivery of natural gas from a private home or residence, for\n\nnoncommercial purposes, into the fuel tank of a motor vehicle\n\npropelled by compressed natural gas. The property covered by this\n\nparagraph must be new and must not have been previously installed or\n\nused to refuel vehicles powered by natural gas; or\n\n5. For tax years 2010 and 2023 through 2028, a motor vehicle\n\noriginally equipped so that the vehicle may be propelled by a\n\nhydrogen fuel cell electric fueling system.\n\nC. As used in this section, “motor vehicle” means a motor\n\nvehicle originally designed by the manufacturer to operate lawfully\n\nand principally on streets and highways.\n\nD. The credit provided for in subsection A of this section\n\nshall be as follows:\n\n1. For the qualified clean-burning motor vehicle fuel property\n\ndefined in paragraphs 1, 2, or 5 of subsection B of this section,\n\nthe amount of the credit shall be as follows based upon gross\n\nvehicle weight of the qualified vehicle:\n\na. for vehicles up to or below six thousand (6,000)\n\npounds, the credit shall be a maximum of Five Thousand\n\nFive Hundred Dollars ($5,500.00),\n\nb. for vehicles between six thousand one (6,001) pounds\nmotor vehicle fuel property\n\ndefined in paragraphs 1, 2, or 5 of subsection B of this section,\n\nthe amount of the credit shall be as follows based upon gross\n\nvehicle weight of the qualified vehicle:\n\na. for vehicles up to or below six thousand (6,000)\n\npounds, the credit shall be a maximum of Five Thousand\n\nFive Hundred Dollars ($5,500.00),\n\nb. for vehicles between six thousand one (6,001) pounds\n\nto ten thousand (10,000) pounds, the credit shall be a\n\nmaximum amount of Nine Thousand Dollars ($9,000.00),\n\nc. for vehicles of ten thousand one (10,001) pounds, but\n\nnot in excess of twenty-six thousand five hundred\n\n(26,500) pounds, the credit shall be a maximum amount\n\nof Twenty-six Thousand Dollars ($26,000.00), and\n\nd. for vehicles in excess of twenty-six thousand five\n\nhundred one (26,501) pounds, the credit shall be a\n\nmaximum amount of One Hundred Thousand Dollars\n\n($100,000.00);\n\n2. For qualified clean-burning motor vehicle fuel property\n\ndefined in paragraph 3 of subsection B of this section, a per-\n\nlocation credit of forty-five percent (45%) of the cost of the\n\nqualified clean-burning motor vehicle fuel property; and\n\n3. For qualified clean-burning motor vehicle fuel property\n\ndefined in paragraph 4 of subsection B of this section, a per-\n\nlocation credit of the lesser of fifty percent (50%) of the cost of\n\nthe qualified clean-burning motor vehicle fuel property or Two\n\nThousand Five Hundred Dollars ($2,500.00).\n\nE. In cases where no credit has been claimed pursuant to\n\nparagraph 1 of subsection D of this section by any prior owner and\n\nin which a motor vehicle is purchased by a taxpayer with qualified\n\nclean-burning motor vehicle fuel property installed by the\n\nmanufacturer of such motor vehicle and the taxpayer is unable or\n\nelects not to determine the exact basis which is attributable to\n\nsuch property, the taxpayer may claim a credit in an amount not\n\nexceeding the lesser of ten percent (10%) of the cost of the motor\n\nvehicle or One Thousand Five Hundred Dollars ($1,500.00).\n\nF. If the tax credit allowed pursuant to subsection A of this\n\nsection exceeds the amount of income taxes due or if there are no\n\nstate income taxes due on the income of the taxpayer, the amount of\n\nthe credit not used as an offset against the income taxes of a\n\ntaxable year may be carried forward, in order, as a credit against\n\nsubsequent income tax liability for a period not to exceed five (5)\n\nyears. The tax credit authorized pursuant to the provisions of this\n\nsection shall not be used to reduce the tax liability of the\n\ntaxpayer to less than zero (0).\n\nG. A husband and wife who file separate returns for a taxable\n\nyear in which they could have filed a joint return may each claim\n\nonly one-half (1/2) of the tax credit that would have been allowed\n\nfor a joint return.\n\nH. The Oklahoma Tax Commission is herein empowered to\n\npromulgate rules by which the purpose of this section shall be\n\nadministered including the power to establish and enforce penalties\n\nfor violations thereof.\n\nI. Notwithstanding the provisions of Section 2352 of this\n\ntitle, for the fiscal year beginning on July 1, 2014, through fiscal\n\nyear 2023, the Tax Commission shall calculate an amount that equals\n\nfive percent (5%) of the cost of qualified clean-burning motor\n\nvehicle fuel property as provided for in paragraph 1 of subsection D\n\nof this section for tax year 2012. For each subsequent fiscal year\n\nthereafter, the Tax Commission shall perform the same computation\n\nwith respect to the second tax year preceding the beginning of each\n\nsubsequent fiscal year. For fiscal year 2024, the Tax Commission\n\nshall calculate an amount that equals twelve percent (12%) of the\n\ncredit for qualified clean-burning motor vehicle fuel property as\n\nprovided in paragraph 1 of subsection D of this section for tax year\neafter, the Tax Commission shall perform the same computation\n\nwith respect to the second tax year preceding the beginning of each\n\nsubsequent fiscal year. For fiscal year 2024, the Tax Commission\n\nshall calculate an amount that equals twelve percent (12%) of the\n\ncredit for qualified clean-burning motor vehicle fuel property as\n\nprovided in paragraph 1 of subsection D of this section for tax year\n\n2021. For each subsequent fiscal year, the Tax Commission shall\n\nperform the same calculation for credits claimed in the second\n\npreceding tax year. The Tax Commission shall then transfer an\n\namount equal to the amount calculated in this subsection from the\n\nrevenue derived pursuant to the provisions of subsections A, B and E\n\nof Section 2355 of this title to the Compressed Natural Gas\n\nConversion Safety and Regulation Fund created in Section 130.25 of\n\nTitle 74 of the Oklahoma Statutes.\n\nJ. For the tax years 2020 through 2022, the total amount of\n\ncredits authorized by this section used to offset tax shall be\n\nadjusted annually to limit the annual amount of credits to Twenty\n\nMillion Dollars ($20,000,000.00). The Tax Commission shall annually\n\ncalculate and publish by the first day of the affected taxable year\n\na percentage by which the credits authorized by this section shall\n\nbe reduced so the total amount of credits used to offset tax does\n\nnot exceed Twenty Million Dollars ($20,000,000.00) per year. The\n\nformula to be used for the percentage adjustment shall be Twenty\n\nMillion Dollars ($20,000,000.00) divided by the credits claimed in\n\nthe second preceding year, with respect to any changes to the future\n\nof the credit.\n\nK. Pursuant to subsection J of this section, in the event the\n\ntotal tax credits authorized by this section exceed Twenty Million\n\nDollars ($20,000,000.00) in any calendar year, the Tax Commission\n\nshall permit any excess over Twenty Million Dollars ($20,000,000.00)\n\nbut shall factor such excess into the percentage adjustment formula\n\nfor subsequent years with respect to any changes to the future of\n\nthe credit.\n\nL. For the tax years 2023 through 2028, the total amount of\n\ncredits authorized by this section used to offset tax shall be\n\nadjusted annually to limit the annual amount of credits to:\n\n1. Ten Million Dollars ($10,000,000.00) for qualified clean\n\nburning fuel property propelled by compressed natural gas, liquefied\n\nnatural gas, or liquefied petroleum gas, property related to the\n\ndelivery of compressed natural gas, liquefied natural gas or\n\nliquefied petroleum gas, and property directly related to the\n\ncompression and delivery of natural gas;\n\n2. Ten Million Dollars ($10,000,000.00) for property originally\n\nequipped so that the vehicle may be propelled by a hydrogen fuel\n\ncell electric fueling system and property directly related to the\n\ndelivery of hydrogen; and\n\n3. Ten Million Dollars ($10,000,000.00) for property which is a\n\nmetered-for-fee, public access recharging system for motor vehicles\n\npropelled in whole or in part by electricity.\n\nThe Tax Commission shall annually calculate and publish by the\n\nfirst day of the affected taxable year a percentage by which the\n\ncredits authorized by this section shall be reduced so the total\n\namount of credits used to offset tax does not exceed each of the\n\nlimits provided in paragraphs 1 through 3 of this subsection. The\n\nformula to be used for the percentage adjustment shall be Ten\n\nMillion Dollars ($10,000,000.00) divided by the credits claimed in\n\nthe second preceding year, with respect to any changes to the future\n\nof the credit.\n\nM. Pursuant to subsection L of this section, in the event the\n\ntax credits authorized by this section exceed any of the limits\n\nprovided in paragraphs 1 through 3 of subsection L of this section\n\nin any year, the Tax Commission shall permit any excess over Ten\n\nMillion Dollars ($10,000,000.00) but shall factor such excess into\nceding year, with respect to any changes to the future\n\nof the credit.\n\nM. Pursuant to subsection L of this section, in the event the\n\ntax credits authorized by this section exceed any of the limits\n\nprovided in paragraphs 1 through 3 of subsection L of this section\n\nin any year, the Tax Commission shall permit any excess over Ten\n\nMillion Dollars ($10,000,000.00) but shall factor such excess into\n\nthe percentage adjustment formula for subsequent years with respect\n\nto any changes to the future of the credit.\n\nN. The Tax Commission shall notify the Office of the State\n\nSecretary of Energy and Environment at any time when the amount of\n\nclaims for credits allowed pursuant to this section reaches eighty\n\npercent (80%) of the total annual limit provided in subsection J of\n\nthis section. Upon such notification, the Secretary shall provide\n\nnotice to the Governor, President Pro Tempore of the Senate and\n\nSpeaker of the House of Representatives.","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"3fdf5eec80f8e56d013e045c4aacdd3b2669171620a67959695d7ee81a253f3f","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2357.22v1","next":"us-ok/okla.-stat.-tit.-68-68-2357.25"},"notice":"GroundRules: Original legal text. Not legal advice."}