Oklahoma's Gov. Kevin Stitt approved a bill that redefines and extends Oklahoma's tax credits for several alternative fuel vehicles in the state.
The bill extends tax credits for specific clean-burning motor vehicles starting in 2020 until the end of 2027 and also alters how much credit is granted for a vehicle type based on its gross vehicle weight (GVW). A cap will also be placed on authorized credits to be limited to $20 million beginning January 1, 2020, and each taxable year thereafter.
Applicable vehicles must run on compressed natural gas, liquefied natural gas, liquefied petroleum gas vehicles, and electricity. It also applies to vehicles which are defined as equipment installed that modify a motor vehicle to run on the aforementioned alt-fuel solutions. The modified motor vehicle must follow the Federal Motor Carrier Safety Regulations or Oklahoma or Intrastate Motor Carrier Regulations for any commercial vehicle.
The distribution of credits based on GVW starts at $5,500 for vehicles under 6,000 lbs.; $9,000 for vehicles with a GVW between 6,001-10,000 lbs.; $26,000 when between 10,001-26,500 lbs.; and $50,000 for 26,501 lbs. and heavier.
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